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Introduction

Following the introduction of independent taxation in 1990, every individual (regardless of age) who meets the residence conditions and income conditions discussed below can claim the personal allowance. The allowance is deducted at Step 3 of the income tax computation in ITA 2007, s 23 (ie deducted from net income, see E1.101B).

The personal allowance was £12,570 in 2021/22 and the level of the allowance is frozen at this level until 5 April 2028¹. Allowances for earlier years are given in T6.113 and T6.115. The amount of the allowance is reduced if the individual's adjusted net income exceeds £100,000². See 'Reduction in personal allowance for individuals with income over £100,000' below.

Note that as far as tax devolution in Scotland and Wales is concerned, the personal allowance is a reserved matter, which means the level of the allowance is set by the UK Government.

From 6 April 2015 onwards, in certain circumstances it is possible for one spouse or civil partner to transfer 10% of their personal