Guide

Tax allowances – what am I entitled to before I pay tax?

December 15, 2022
This guide was last updated on:
January 11, 2023

Various tax-free allowances exist to help ease the burden of paying taxes.  Although some are applied by HMRC automatically, many of them are required to be claimed for.

Read on to learn more about what you may be entitled to claim for

  • Personal Allowance – this is currently £12,500 and everybody is entitled to this
  • Marriage Allowance – currently £1,250 and you are required to claim for it
  • Blind persons allowance - £2,450 and you are required to claim for it

If you are self employed there are additional allowances available:

  • Trading Allowance - £1,000
  • ‘Using Home as Office’ – between £10 - £26 per month
  • Mileage Allowance – between 25-45p per mile depending on how many miles you do

If you rent out property:

  • Property Income Allowance - £1,000
  • Rent-a-Room Scheme - £7,500 based on eligibility
  • Private Residence Relief – No Capital Gains Tax when selling property, based on eligibility criteria

As an investor:

  • Capital Gains Allowance - £12,000
  • Dividend Allowance - £2,000
  • Savings Interest Allowance – up to £5,000 depending on your income

Other Allowances:

  • State benefits allowance
  • National Lottery Allowance

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