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The amount of income you can earn each year before paying Income Tax.
The standard Personal Allowance is £12,570 for most people. If your income exceeds £100,000, your allowance is reduced by £1 for every £2 earned above that threshold, creating an effective 60% marginal rate in the £100,000–£125,140 band. The allowance can also be adjusted through Marriage Allowance or Blind Person's Allowance.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.