The Personal Allowances has been frozen until 2028. This also has the effect of freezing the Marriage Allowance.
Autumn Statement 2023 announced that the Blind Person’s Allowance (BPA) and the Married Couple’s Allowance (MCA) will be uprated for tax year 2024/25. The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2024 legislates for this to happen.
As at the time of writing, the following table represents the allowances that will apply from 2024/25, comparing them to the values in tax year 2023/24:
|
Tax Allowance
|
2023/24
|
2024/25
|
Change
|
|
|
£
|
£
|
£
|
|
Personal Allowance
|
12,570
|
12,570
|
0
|
|
Marriage Allowance
|
1,260
|
1,260
|
0
|
|
The Married Couple’s Allowance
|
|
|
10,375
|
11,080
|
+ 705
|
|
|
4,010
|
4,280
|
+ 270
|
|
|
34,600
|
37,000
|
+ 2,400
|
|
Blind Person’s Allowance
|
2,870
|
3,070
|
+ 200
|
For Bookkeepers
The Married Couple’s Allowance is the age-related allowance that is reduced when income reaches a threshold known as the income limit (the £37,000). This results in a tapering down of the MCA by £1 for every £2 of income over £37,000. However, unlike the Personal Allowance, which also tapers away (when income reaches £100,000), the MCA does not taper to zero and has a maximum (£11,080) and a minimum (£4,280).
