UK Personal Allowance 2026/27: £12,570 and High-Income Taper

Updated for the 2026/27 tax year. The standard UK Personal Allowance is £12,570. It is the amount of qualifying income you can usually receive before Income Tax, but it can be reduced by high income, transferred through Marriage Allowance in limited circumstances or supplemented by other allowances.

How the £12,570 allowance works

The allowance is set against taxable income, including employment, pension, self-employment and property income. It does not mean every person can receive £12,570 from each source. One allowance is applied across total income, normally through PAYE codes and/or the annual tax calculation.

Personal Allowance taper above £100,000

The allowance is reduced by £1 for every £2 of adjusted net income above £100,000. It is therefore normally completely lost at £125,140.

• Adjusted net income of £100,000 or less: standard allowance may remain
• Adjusted net income of £110,000: allowance normally reduced by £5,000
• Adjusted net income of £125,140 or more: no Personal Allowance

The taper creates an effective 60% marginal Income Tax rate on affected income in England, Wales and Northern Ireland before National Insurance, because the taxpayer pays higher-rate tax and loses allowance simultaneously. Scottish taxpayers can face a different effective result due to Scottish rates.

What is adjusted net income?

Adjusted net income starts with total taxable income and applies specific adjustments. Gross Gift Aid donations and qualifying personal pension contributions made under relief at source can reduce it. Salary sacrifice arrangements may reduce taxable income where valid, but a personal transfer of cash after earning salary does not.

Use exact figures: employment benefits, savings, dividends, rent and foreign income can push adjusted net income above £100,000 even where salary alone is lower.

Marriage Allowance

An eligible spouse or civil partner with income below the Personal Allowance can transfer £1,260 of allowance to the other partner, generally where the recipient is not a higher- or additional-rate taxpayer. The transferor receives an N tax code and the recipient may receive M. The tax saving is normally up to £252 for the year.

Marriage Allowance is different from Married Couple’s Allowance, which applies under separate age-based rules. A transfer can sometimes be backdated for eligible open years.

Blind Person’s Allowance

Eligible people can claim Blind Person’s Allowance in addition to the Personal Allowance. Unused Blind Person’s Allowance can sometimes transfer to a spouse or civil partner. Eligibility and registration rules differ between England/Wales, Scotland and Northern Ireland, so check the current HMRC guidance.

Residence and eligibility

UK residents generally qualify, but residence alone is not the only route. Some non-residents qualify through citizenship, treaty or other statutory conditions. In some cases claiming the allowance can restrict another treatment, so non-residents should consider the whole tax calculation.

PAYE tax codes

A standard code of 1257L commonly reflects the £12,570 allowance. HMRC can reduce the number for benefits, untaxed income or earlier underpayments, or allocate the allowance between jobs and pensions. A code is an estimate for collection—it does not change the legal annual entitlement.

Multiple jobs and pensions

The allowance is usually attached mainly to one source, while secondary sources may use BR, D0, D1 or another code. Check the combined income. Duplicating the allowance across employers can create an underpayment; assigning none to the main source can create a temporary overpayment.

Income that uses separate allowances

The Personal Savings Allowance, dividend allowance, trading allowance, property allowance, ISA exemption and Capital Gains Tax annual exempt amount are separate provisions. They are not extra Personal Allowance and have different conditions. Some 0%-rated income still counts when determining tax bands or adjusted net income.

Example: allowance taper

A taxpayer has adjusted net income of £116,000. The excess over £100,000 is £16,000, so the Personal Allowance is reduced by £8,000, leaving £4,570. If a qualifying gross pension contribution reduces adjusted net income to £110,000, the allowance would instead be reduced by £5,000, subject to all contribution and annual-allowance rules.

How to claim or correct the allowance

1. Check HMRC’s record of jobs, pensions, income and benefits.
2. Review the tax-code breakdown.
3. Update estimates through the Personal Tax Account or contact HMRC.
4. Claim eligible pension, Gift Aid or expense relief correctly.
5. Use Self Assessment where required.
6. Check the P60/P45 and final calculation after the year.

Common mistakes

• Applying £12,570 separately to every income source
• Ignoring dividends or savings when testing the £100,000 taper
• Confusing Marriage Allowance with the standard allowance
• Assuming a 1257L code proves the final tax is correct
• Making a pension contribution without checking annual allowance and scheme mechanics
• Leaving an allowance attached to an old employment

Read HMRC’s official guidance on income above £100,000 and Income Tax allowances and bands. Our 2026/27 tax-code guide explains how PAYE applies allowances.

Frequently asked questions

Is the allowance £12,570 in Scotland?

The standard Personal Allowance is UK-wide, but Scottish rates and bands apply to relevant non-savings, non-dividend income.

Can I carry unused allowance forward?

No. Ordinary unused Personal Allowance is not carried to the next tax year.

Do children have a Personal Allowance?

Yes, age alone does not remove it. Special anti-avoidance rules can tax income from substantial parental gifts differently.

This guide is general information. High-income and non-resident calculations can be complex.