Blog: What tax free allowances do you have?

There are a number of tax-free allowances in the UK and taking advantage of them can significantly increase your tax refund or reduce your tax bill.

Some of these allowances are applied automatically (meaning you won’t need to do anything to benefit form them), while others you’ll need to claim.

You can click on each of these links to see how each works:

1. General tax-free allowances

Tax-free allowanceHow much is it?Do you need to apply for it?
The Personal Allowance£12,570No
The Marriage Allowance£1,260Yes
Blind Person’s Allowance£2,520Yes

2. Self-employment allowances

Tax-free allowanceHow much is it?Do you need to apply for it?
The Trading Allowance£1,000No, if you don’t earn more or Yes if you don’t claim other expenses
The Home Office AllowanceBetween £10 – £26 per monthOnly if you prefer it to claiming rent
The Mileage AllowanceBetween 24p to 45p per mileOnly if you prefer it to claiming fuel, etc.

3. Property-related allowances

Tax-free allowanceHow much is it?Do you need to claim it?
The Property Income Allowance£1,000Only if you don’t earn more or don’t claim expenses
The Rent a Room Scheme£7,500Only if you’re eligible
The Private Residence ReliefYou don’t pay CGT when selling your homeOnly if you didn’t live in it for the entire duration

4. Investment allowances

Tax-free allowanceHow much is it?Do you need to claim it?
The Capital Gains Allowance£12,300No
The Dividend Allowance£2,000No
The Savings Interest AllowanceBetween £5,000 and £0 (depends on your Income Tax band)No

5. Other tax-free allowances:

The State Benefits Allowance: some (not all) state benefits are tax-free.

The National Lottery Allowance: winnings from the National Lottery are tax-free.

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