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Levels of Personal Allowance

The amount of your personal allowance depends on:

• your age 
• your total income in the tax year if you are 65 or over

Total income means everything you receive from all taxable sources. That means you need to include things like pensions and interest on your savings in a building society before the tax has been taken off.

There are three levels of Personal Allowance

Personal Allowance	2009-10 tax year	Income limit (see note)
Basic level	£6,475	none
Age 65-74	£9,490	£22,900
Age 75 and over	£9,640	£22,900

If you become 65 or 75 during the year to 5 April 2010, you are entitled to the allowance for that age group.

Note: If your income is over the income limit, HM Revenue & Customs (HMRC) will reduce the age-related allowance by half of the amount - £1 for every £2 - you have over that limit, until the basic rate allowance is reached. You'll always get the basic allowance, whatever the level of your income.

So if, for example, you're 66 and have an income of £23,400 (£500 over the limit) HMRC would reduce your age-related Personal Allowance by £250 to £9,240.

• Check Income Tax allowances and income limit for 2010-11 Opens new window

How do you get the Personal Allowance?

If you already pay tax through your job or pension, or if you complete a Self Assessment tax return, you should receive a Personal Allowance automatically.

If for any reason you are not receiving a Personal Allowance and you think you should be, please contact HMRC and they will check your entitlement with you. 

In order to get the age-related Personal Allowance you need to complete form P161 'Pension Enquiry'.

• Why it's important to fill in your P161 Pension Enquiry form Opens new window

• Contact details for all Tax Offices Opens new window

If you think you've paid too much tax

If you want to claim a tax refund because you didn't use your Personal Allowance, or for any other reason, you need to do so no later than 31 January five years after the end of the tax year (5 April) in which you overpaid tax.

For example, a claim for the tax year 2003-04 - which ended on 5 April 2004 - must be made by 31 January 2010.

• Get a copy of form R40 using HMRC's find a form tool Opens new window

• Download 'notes for the Tax Repayment Form' (PDF 186K) Opens new window

• Help with PDF files

• More about claiming tax you've overpaid

Who can't get the Personal Allowance?

You can't claim the Personal Allowance if you are non-UK domiciled and claim the special 'remittance' basis of tax - whereby you only pay tax on income you bring into the UK. If you think this applies to you, please contact HMRC.

• Contact HMRC Opens new window

Other allowances you may be able to get

Blind Person's Allowance

If you're certified blind and are on a local authority register of blind persons, or if you live in Scotland or Northern Ireland and you are unable to perform any work for which eyesight is essential, you can claim Blind Person's Allowance.

If you're married or in a civil partnership and can't use all your allowance, you can give the unused part to your spouse or civil partner. Even if you have no taxable income, it might be still worth claiming Blind Person's Allowance as your spouse or civil partner could benefit from your allowance.

• Blind Person's Allowance

Married Couple's Allowance - available to civil partners

You need to be a taxpayer to claim this allowance, because it's deducted from your tax bill - but it is possible to transfer the allowance to your spouse or civil partner.

You can claim Married Couple's Allowance if:

• you're married or in a civil partnership 
• you're a taxpayer
• you or your spouse or civil partner were born before 6 April 1935

• Learn more about Married Couple's Allowance

Giving to charity - effect on your allowances

If you pay tax and give money to a UK charity or Community Amateur Sports Club (CASC) using Gift Aid, it's important to let HMRC know as this can increase the amount of tax-free income and related tax allowances you can receive.

• Tax relief when giving to charity through Gift Aid

More useful links

• Do you have to pay tax in retirement? (pensions and retirement planning section)

• Planning for retirement (pensions and retirement planning section)

• Working and paying tax

• Tax when starting, leaving or retiring from work

• Check up-to-date figures for personal allowances from HMRC Opens new window

• More about civil partnerships Opens new window