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personal allowancethe amount of income that a person is allowed to earn before beginning to pay INCOME TAX. In the UK, for example, the personal allowance is currently (2005/06) £4,895 for a single person. In addition, older persons, widows, single-parent families, married couples and blind persons receive an extra personal allowance so that they are able to earn more before paying tax.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson