- Personal allowances are deducted from your income before calculating IT at rates that are determined by the level of your income. You qualify for the married couple’s/civil partner’s allowance only if at least one of you was born before 6 April 1935. Relief for these allowances is restricted to 10%.
- The age allowances above the basic single personal and married couple’s allowance are reduced by £1 for every £2 to the extent that your total income is more than the age allowance threshold.
- Your personal allowance is reduced by £1 for each £2 of income over £100,000, so is completely lost if your 2011/12 income exceeds £112,950.
- The family element of children’s tax credit is paid directly to the main carer and is not an income tax deduction.
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Income tax
01: Introduction
Income tax (IT) is charged on all your income that arises in the UK. If you are a UK resident, you may also be liable for IT on any income arising overseas. Click here for further details.
The FSA does not regulate tax advice. Tax rules are subject to change.
