Illustration - personal allowance
You'll learn how to calculate personal allowance in different scenarios, including when income exceeds the £100,000 threshold and triggers a reduction.
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In this lesson
- 0:00 Personal allowance calculation overview
- 0:27 Louise's example: income below threshold
- 1:05 Dan's example: applying the reduction formula
- 2:56 Graham's example: personal allowance eliminated
About this lesson
This video walks through three worked examples covering non-savings income, pension contributions, and exempt income, showing you exactly how to adjust net income and apply the personal allowance rules. Essential for TX (Taxation) and understanding how reliefs and contributions affect your client's allowance.
Duration: 4m
Transcript
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