Personal allowance

Each year you get a personal allowance of tax-free income; the standard amount for the current tax year 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. The tax percentage will depend on how much you earn and where in the UK you live. It’s worth planning your retirement income to make the most of your money.

If you earn above £100,000, your Personal Allowance is reduced by £1 for every £2 you earn above it, until it reaches £0.

More about your personal allowance »

We’re not authorised to give you advice, but you can read more about your guidance and advice options on our website.