What’s the personal allowance?


Each tax year you get a personal allowance of tax-free income – the standard amount for 2021/2022 is £12,570. That’s any money you earn through work, property, investments etc, or from your pensions savings – completely free of tax!

Anything on top of that is usually taxed at 20% (or higher if it’s a lot more) so it’s worth planning your retirement income to make the most of your money.

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