The standard personal allowance will rise to £10,500 from 6 April 2015. The age related allowances are gradually falling in line with age-related allowances given to taxpayers born since April 1948.
The transferrable allowance will apply from 6 April 2015 to couples (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income will be able to opt to transfer 10% of their personal allowance to their spouse or civil partner.
The personal allowance is tapered away for individuals who have income over £100,000, at the rate of £1 for every £2 of income above that threshold.
The allowances have been announced as follows:
2013/14 (£)
2014/15 (£)
2015/16 (£)
Born after 5 April 1948
9,440
10,000
10,500
Born after 5 April 1938 before 4 April 1948
10,500
10,500
10,500
Born before 6 April 1938
10,660
10,660
10,660
Minimum married couples allowance*
3,040
3,140
TBA
Maximum married couples allowance*
7,915
8,165
TBA
Transferable portion of allowance
N/A
N/A
1,050
Blind person's allowance
2,160
2,230
TBA
Income limit for allowances for age related allowances
26,100
27,000
TBA
Income limit for standard allowances
100,000
100,000
100,000
Personal allowance removed completely at:
118,880
120,000
121,000
* given as 10% reduction in tax liability, where one partner was born before 6 April 1935.