We sort your Self Assessment for you. £149, all in.

Fast, effortless and 100% online.  Learn more

We sort your Self Assessment for you. £149, all in.

What tax-free allowances do you have?

  • 2 min read
  • Last updated 10 May 2022

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 £12,570 No
The Marriage Allowance £1,260 Yes
Blind Person’s Allowance £2,520 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-related allowances

Tax-free allowance How much is it? Do you need to claim it?
The Property 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’re eligible
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 £12,300 No
The Dividend Allowance £2,000 No
The Savings Interest Allowance Between £5,000 and £0 (depends on your Income Tax band) No

6. Pension allowances

  • Private Pension Tax Relief – you can contribute up to £40,000 per year or 100% of your income (whichever is lower) and claim a 20-25% tax relief
  • Pension Lifetime Allowance – £1.07 million in your lifetime

5. Other tax-free allowances:

TaxScouts Newsletter

Want regular tips from us?

Sign up for important updates, deadline reminders and basic tax hacks sent straight to your inbox.

"*" indicates required fields

Category
TaxScouts Newsletter

Want regular tips from us?

Sign up for important updates, deadline reminders and basic tax hacks sent straight to your inbox.

"*" indicates required fields

Category