In the budget the personal allowance was kept at £12,570 and this will be the case until at least April 2028.
The PAYE threshold for 2023/24 remains £1,048 a month.
A taxpayer who is liable to tax only at the basic rate can transfer part of their allowance to their spouse or civil partner as long as they also only pay tax at basic rate. The allowance that can be transferred is 10% of the personal allowance.
The married couples’ allowance will be £10,375 from Apr 2023 and provides relief at 10%. It is only available where at least one of the couple was born before 5 Apr 1935 i.e. 88.
The blind persons’ allowance will rise to £2,870.
Comments