Glossary
What is the personal allowance?
The personal allowance is the amount you can earn each year before you pay any income tax — £12,570 in 2025/26.
How it works
You pay 0% income tax on earnings up to the personal allowance, then 20% up to £50,270, 40% up to £125,140, and 45% above. The allowance is reduced by £1 for every £2 you earn over £100,000, disappearing entirely at £125,140.
Why it matters now
The allowance has been frozen at £12,570 since 2021 (now until 2031), which through fiscal drag raises more tax over time. Reform UK proposes raising it to £20,000; the Conservatives' Triple Lock Plus would raise it for pensioners.
Plain-English definition for general information only — not financial, legal or tax advice. Rates are 2025/26 unless stated.