Additional Personal Allowance

AAA

DEFINITION of 'Additional Personal Allowance'

In the United Kingdom, an extra deduction as set forth by HM Revenue & Customs (HMRC) on income tax returns that can be claimed by single, separated or widowed individuals who are not eligible to receive the married couple allowance and who are financially supporting a child under the age of 16.

INVESTOPEDIA EXPLAINS 'Additional Personal Allowance'

The allowance also permits men to claim the additional allowance if an incapacitated wife is living in the household and there is a qualifying child under the age of 16 living with them, provided the wife is totally incapacitated throughout the year. The additional personal allowance provides tax relief to tho those who qualify. A qualifying child is a child of the claimant or a child that is supported and cared for by the claimant.

RELATED TERMS
  1. Income Tax

    A tax that governments impose on financial income generated by ...
  2. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  3. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  4. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  5. Additional Child Tax Credit

    A refundable credit that can be claimed by taxpayers who are ...
  6. Section 7702

    The section of the United States Internal Revenue Code that defines ...
Related Articles
  1. Saver's Tax Credit: A Retirement Savings ...
    Savings

    Saver's Tax Credit: A Retirement Savings ...

  2. How To Cut Your Alternative Minimum ...
    Taxes

    How To Cut Your Alternative Minimum ...

  3. Keep Working Or Stay At Home With The ...
    Retirement

    Keep Working Or Stay At Home With The ...

  4. Cut Employee Stock Option Taxes With ...
    Taxes

    Cut Employee Stock Option Taxes With ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center