Individuals

Individuals

Personal Allowances

The standard personal allowance will rise to £10,500 from 6 April 2015. The age related allowances are gradually falling in line with age-related allowances given to taxpayers born since April 1948.

The transferrable allowance will apply from 6 April 2015 to couples (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income will be able to opt to transfer 10% of their personal allowance to their spouse or civil partner.

The personal allowance is tapered away for individuals who have income over £100,000, at the rate of £1 for every £2 of income above that threshold.

The allowances have been announced as follows:

2013/14 (£) 2014/15 (£) 2015/16 (£)
Born after 5 April 1948 9,440 10,000 10,500
Born after 5 April 1938 before 4 April 1948 10,500 10,500 10,500
Born before 6 April 1938 10,660 10,660 10,660
Minimum married couples allowance* 3,040 3,140 TBA
Maximum married couples allowance* 7,915 8,165 TBA
Transferable portion of allowance N/A N/A 1,050
Blind person's allowance 2,160 2,230 TBA
Income limit for allowances for age related allowances 26,100 27,000 TBA
Income limit for standard allowances 100,000 100,000 100,000
Personal allowance removed completely at: 118,880 120,000 121,000

* given as 10% reduction in tax liability, where one partner was born before 6 April 1935.


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Exel accountants is an accountancy firm based in Watford Hertfordshire. Exel accountants are a firm of qualified and experienced accountants specialising in providing accounting and taxation services to new and established businesses.

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Exel Accountancy Ltd
66B, Sydney Road
Watford WD18 7QX
0192 351 7300
info@exelaccountancy.co.uk

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