A tax allowance is a specific amount of income that a person is allowed to earn without having to pay taxes on it. It's like a deduction or exemption that reduces the amount of money you owe in taxes. Full definition
• He said that stay - at - home mums would benefit from the coalition's plans to introduce transferable tax allowances. (theguardian.com)
Class 4 contributions are paid by self - employed people in addition to class 2 contributions, where your earnings are above the personal tax allowance for the year. (nationaldebtline.org)
The proposed measure introduces a pair of new annual tax allowances for individuals of # 1,000 each, one for trading and one for property income. (politics.co.uk)