These are concessions from the Inland Revenue which can be used to reduce your taxable income. Your Personal allowance is an amount of income that is tax free. Personal allowances for 2005 - 2006: under 65yrs - £4,895, 65yrs-74yrs - £7,090, 75yrs+ - £7,220
These are tax-free amounts set by the government every year. Normally they are given to UK & commonwealth citizens, but are also available to others who qualify under specific rules. The basic and most common is the Personal Allowance - it is available to everyone resident in the United Kingdom for tax purposes.
Allowances are standard tax-free amounts set by the government every year. They are given to all UK & commonwealth citizens and others who qualify under specific criteria. The most common is the Personal Allowance. This is given to everyone resident in the United Kingdom for tax purposes. Other main allowances previously included Married Couples' Allowance, but since 6th April 2000 married allowance has been restricted to those over 65 at that date. Allowances for children have now been abolished but were available up to 5th April 2003 for children born after 6th April 1985.