Tax-free Income

There are a range of tax allowances that you can claim in the UK, which enable you to make a tax-free income. This is not the same as making a gross income – if you exceed the incomes listed below for your relevant allowances, you will then have to pay the necessary taxes, but you do get to make a certain level of allowance before your tax liabilities kick in.

Allowance Who can claim? How much? (2022/23)
Personal Allowance Anyone earning less than £125,140 £12,570
Trading Allowance Anyone who earns self-employed income £1,000
Capital Gains Tax Allowance Anyone making profit from selling assets £3,000
Marriage Allowance Spouses/civil partners – one earning >£12,500, the other >£50,270 £1,260
Property Allowance Landlords, most often buy-to-let landlords £1,000
Rent a Room scheme Live-in-landlords £7,500
Dividend Allowance Anyone who’s earned dividends £1,000

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