In 1965, the regressive allowance for national insurance contributions was abolished and the single personal allowance, marriage allowance and wife's earned income relief were increased.
Tax exemption may also refer to a personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income under some systems.
The personal allowance is a standard deduction from ordinary income, meaning that it is given in all income (wages, pensions, capital and business income).
Individuals may also deduct a personal allowance (exemption) and certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items.