What tax-free allowances do you have?

We've updated this guide on 29th July 2019

There are many tax-free allowances in the UK.

Taking advantage of them can significantly reduce your tax bill or increase your tax refund.

Some of them are automatic (you don’t need to do anything to use them), while others you need to claim.

You can click on each of these links to see how each works:

1. General tax-free allowances

Tax-free allowance How much is it? Do you need to apply for it?
The Personal Allowance £12,500 No
The Marriage Allowance £1,250 Yes
Blind Person’s Allowance £2,450 Yes

2. Self-employment allowances

Tax-free allowance How much is it? Do you need to apply for it?
The Trading Allowance £1,000 No, if you don’t earn more or Yes if you don’t claim other expenses
The Home Office Allowance Between £10 – £26 per month Only if you prefer it to claiming rent
The Mileage Allowance Between 24p to 45p per mile Only if you prefer it to claiming fuel, etc.

3. Property income allowances

Tax-free allowance How much is it? Do you need to claim it?
The Rental Income Allowance £1,000 Only if you don’t earn more or don’t claim expenses
The Rent a Room Scheme £7,500 Only if you qualify
The Private Residence Relief You don’t pay CGT when selling your home Only if you didn’t live in it for the entire duration

4. Investment allowances

Tax-free allowance How much is it? Do you need to claim it?
The Capital Gains Allowance £12,000 No
The Dividend Allowance £2,000 No
The Savings Interest Allowance Between £5,000 and £0 (depends on your Income Tax band) No

5. Other tax-free allowances:

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