Policy library
Economy

Raise the income tax personal allowance

Lift the tax-free personal allowance to £20,000 to leave more money in workers' pockets and simplify low-income taxation.

Key commitments

  • Raise the personal allowance from £12,570 to £20,000
  • Remove approximately 7 million low earners from income tax
  • Fund via a combination of spending reforms and closing existing tax reliefs

Overview

Reform UK proposes raising the personal allowance threshold — the amount you can earn before paying income tax — to £20,000. This is presented as a way to help lower earners and simplify the tax code.

Impact

According to the party's costings document, the change is intended to remove roughly 7 million people from income tax altogether.

Trade-offs

Independent analysts have raised questions about how the resulting revenue gap would be covered. Sources below link to the party's own document and to third-party analysis.

Sources