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UK Income Tax

Income Tax is a tax on income. Not all income is taxable - and you're only taxed on 'taxable income' above a certain level. Even then, there are other reliefs and allowances that can reduce your Income Tax bill - and in some cases mean you have no tax to pay. If you want to more information about UK income tax, just visit our website Income Tax Return Refund Rebate Tips.

There are certain sorts of income that you never pay tax on. These include certain benefits, special pensions and income from tax exempt accounts. These are ignored altogether when working out how much Income Tax you may need to pay.

Everyone who is resident in the UK for tax purposes has a 'personal allowance', which is an amount of taxable income you are allowed to earn or receive each year tax-free.
This tax year (2008-2009), the basic personal allowance - or tax-free amount - is £5,435.

You may be entitled to a higher personal allowance if you are 65 or over.
If you are registered blind, or are unable to perform any work for which eyesight is essential, you can also claim the tax-free blind person's allowance. More details about UK income tax are available on our website Income Tax Return Refund Rebate.