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 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.

More about your personal allowance »