The personal tax allowance in the UK is £12,570 for the 2026/27 tax year, and most people who live and work in the country get it in full. It is not universal, though. High earners lose it gradually once income passes £100,000, non-residents only get it if they qualify through nationality, a treaty, or specific circumstances, and some people actually get more than the standard figure. The £12,570 amount has been frozen since April 2022 and will remain at that level until at least April 2031.1GOV.UK. Income Tax: Maintaining the Personal Allowance and the Basic Rate Limit
Who Gets the Standard £12,570
The full allowance goes to anyone who is UK resident for the tax year. Residence is decided by the Statutory Residence Test. You are automatically resident if you spent 183 or more days in the UK during the tax year, if your only home was in the UK for at least 91 consecutive days and you used it for at least 30 days in the year, or if you worked full-time in the UK over any 365-day period overlapping the tax year.2GOV.UK. Tax on Foreign Income: UK Residence and Tax People who don’t meet those tests can still qualify through the sufficient ties test, which weighs factors such as family, a UK home, and days spent in the country.
For most employees the allowance is applied automatically through PAYE. The standard tax code, 1257L, reflects the full £12,570. If HMRC thinks you owe more tax or are entitled to extra relief, your code will be different.3GOV.UK. Income Tax Rates and Personal Allowances You don’t need to claim it and there’s no form to fill in.
When High Earners Start Losing It
Once your income passes £100,000, the allowance starts to disappear. Section 35(2) of the Income Tax Act 2007 cuts the allowance by £1 for every £2 of adjusted net income above £100,000.4Legislation.gov.uk. Income Tax Act 2007 – Section 35 It reaches zero at £125,140.3GOV.UK. Income Tax Rates and Personal Allowances
The taper creates what is widely called the 60% tax trap. Between £100,000 and £125,140, every extra £100 of income costs £40 in higher-rate income tax plus £20 in lost allowance, giving an effective marginal rate of 60%. That is higher than the 45% additional rate that applies above £125,140.
Bringing the Allowance Back
The taper is measured against adjusted net income, not gross salary. That figure is your total taxable income minus certain reliefs, and the two most useful ones for anyone near the £100,000 line are pension contributions and Gift Aid donations.5GOV.UK. Personal Allowances: Adjusted Net Income
HMRC grosses up contributions on which basic-rate tax relief has already been given. Every £1 paid counts as £1.25 off your adjusted net income. A £10,000 pension contribution therefore removes £12,500 from the calculation. Someone earning £112,000 who pays in £10,000 brings their adjusted net income down to £99,500 and recovers the full personal allowance. If your income sits anywhere near the threshold, it is worth running the numbers before the tax year ends.
Living Abroad
Being non-resident doesn’t automatically shut you out. Section 56 of the Income Tax Act 2007 keeps the allowance available to British citizens and to nationals of European Economic Area countries, a position that survived Brexit.6Legislation.gov.uk. Income Tax Act 2007 – Section 56 You also keep it if you live in the Isle of Man or Channel Islands, if you moved abroad from the UK for health reasons, or if you work or have worked for the Crown, a UK territory, or a missionary society.
Some people qualify instead through a double-taxation agreement between the UK and their country of residence.7GOV.UK. Tax on Your UK Income If You Live Abroad – Personal Allowance
Non-residents don’t get the allowance automatically. You claim it at the end of the tax year on form R43, which is available online or as a PDF. A claim can cover the current tax year and the previous four, so long as you were eligible in each of those years.8GOV.UK. Claim Personal Allowances and Tax Refunds If You Live Abroad (R43)
People Who Get More Than £12,570
Two allowances stack on top of the standard figure for those who qualify.
Marriage Allowance
If you are married or in a civil partnership and one of you earns less than £12,570, the lower earner can transfer £1,260 of unused allowance to the other. That cuts the higher earner’s tax bill by up to £252 a year. The recipient must be a basic-rate taxpayer, meaning income between £12,571 and £50,270 in 2026/27. In Scotland the recipient must pay at the starter, basic, or intermediate rate, which covers income up to £43,662.9MoneyHelper. Marriage and Married Couple’s Allowance Claims can be backdated to 2021/22, worth up to four years of savings. If your partner has died since 5 April 2021 you can still claim by phoning the Income Tax helpline.10GOV.UK. Marriage Allowance: How It Works
Blind Person’s Allowance
Anyone certified as severely sight-impaired by a local authority gets an extra £3,250 on top of the standard allowance in 2026/27, bringing their tax-free income to £15,820.11Croner Navigate. Blind Person’s Allowance Any part you can’t use because your income is too low can be transferred to a spouse or civil partner, who does not need to be visually impaired themselves. The transfer still works if you live apart because of illness, care needs, military posting, or work.12GOV.UK. Blind Person’s Allowance: Transfer Your Allowance
What the Personal Allowance Doesn’t Cover
The personal allowance applies to income generally, but savings interest and dividends have their own separate tax-free bands. Basic-rate taxpayers get a £1,000 personal savings allowance, higher-rate taxpayers get £500, and additional-rate taxpayers get nothing. Dividends carry a £500 tax-free allowance for everyone in 2026/27, regardless of tax band.13The Association of Taxation Technicians. 2026/27 Tax Year Updates and Housekeeping for Individuals These sit alongside the personal allowance, not inside it, so losing the personal allowance to the high-income taper doesn’t touch them, but losing the savings allowance depends on your tax band in its own right.