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Glossary entry · The silent subtractors
Personal Allowance (UK)
Definition
The income amount UK residents can earn each year before any income tax is charged. The Personal Allowance shrinks for very high earners (above £100k) and disappears entirely above £125k, but most workers receive the full £12,570.
Example
Earning £20,000 means only £7,430 (£20,000 − £12,570) is actually taxed at the basic rate.
Related
The silent subtractors
Fee
A charge taken from your investment by a fund, broker, or advisor, every year, forever.
Read →Tax
The other silent subtractor. Almost every gain you make is taxed somewhere.
Read →Expense ratio
The annual fee a fund charges, expressed as a percentage of your investment.
Read →Commission
A fee charged by a broker each time you buy or sell. Mostly $0 with modern brokers.
Read →