Personal Allowance 2025/26
Maximize your tax-free income with Scotland's personal allowance.
What is Personal Allowance?
Your personal allowance is the amount of income you can earn each tax year without paying any income tax. It's a form of tax relief available to everyone.
For the 2025/26 tax year, the standard personal allowance is £12,570. This is the same across Scotland, England, Wales, and Northern Ireland.
How It Works
Your personal allowance is used first to reduce your taxable income. Any income above your allowance is then taxed according to the applicable tax bands.
Example:
You only pay tax on the £12,430 above your allowance, not on the full £25,000 salary.
Tax Savings from Personal Allowance
Your personal allowance provides significant tax savings. The amount saved depends on the tax rate you pay on that income:
Basic rate (20%): £12,570 × 20% = £2,514 saved per year
Higher rate (41% in Scotland): £12,570 × 41% = £5,154 saved per year
Top rate (46% in Scotland): £12,570 × 46% = £5,782 saved per year
Personal Allowance Withdrawal
If your income exceeds £100,000, your personal allowance is reduced. You lose £1 of allowance for every £2 earned above this threshold.
Example:
At £125,140 of income, you have no personal allowance remaining.
Marriage Allowance
If you're married or in a civil partnership and one partner earns less than their personal allowance, that person can transfer their unused allowance to the other partner.
How it works:
- You can transfer up to £1,260 of unused allowance
- This saves the higher earner up to £252 per year in tax
- You must be below the higher earner or on similar income
- It's simple to claim through self-assessment or HMRC's marriage allowance service
Example: If one partner earns £10,000 (£2,570 unused allowance) and the other earns £45,000, the first could transfer £1,260 of their unused allowance, saving the higher earner £252/year.
Age-Related Allowances
If you were born before 6 April 1948, you may be entitled to a higher personal allowance. However, these allowances are gradually being phased out.
Contact HMRC if you think you might qualify for an age-related allowance, as eligibility rules are complex and change based on your specific circumstances.
Calculate Your Allowance
See your personal allowance and how much tax you're saving.
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