Income Tax Act 2007

Chapter 2 U.K. Personal allowance and blind person's allowance

Introduction U.K.

34 Allowances under Chapter U.K.

(1) In this Chapter—

(a) sections 35, 36 and 37 deal with entitlement to a personal allowance,

(b) section 38 deals with entitlement to a blind person's allowance, and

(c) section 39 deals with the transfer of part of a blind person's allowance to a spouse or civil partner.

(2) An allowance under this Chapter is given effect at Step 3 of the calculation in section 23.

Personal allowances U.K.

35 Personal allowance for those aged under 65 U.K.

An individual who makes a claim is entitled to a personal allowance of £5,035 for a tax year if the individual—

(a) is under the age of 65 throughout the tax year, and

(b) meets the requirements of section 56 (residence etc).

36 Personal allowance for those aged 65 to 74 U.K.

(1) An individual who makes a claim is entitled to a personal allowance of £7,280 for a tax year if the individual—

(a) is 65 or over at some time in the tax year, but under 75 throughout the tax year, and

(b) meets the requirements of section 56 (residence etc).

(2) For an individual whose adjusted net income for the tax year exceeds £20,100, the allowance under subsection (1)—

(a) is reduced by half the excess, but

(b) is not reduced below the amount of a personal allowance under section 35.

(3) For the meaning of “adjusted net income” see section 58.

37 Personal allowance for those aged 75 and over U.K.

(1) An individual who makes a claim is entitled to a personal allowance of £7,420 for a tax year if the individual—

(a) is 75 or over at some time in the tax year, and

(b) meets the requirements of section 56 (residence etc).

(2) For an individual whose adjusted net income for the tax year exceeds £20,100, the allowance under subsection (1)—

(a) is reduced by half the excess, but

(b) is not reduced below the amount of a personal allowance under section 35.

(3) For the meaning of “adjusted net income” see section 58.

Blind person's allowance U.K.

38 Blind person's allowance U.K.

(1) An individual who makes a claim is entitled to a blind person's allowance of £1,660 for a tax year if the individual—

(a) meets the first or second condition for the whole or part of the tax year, and

(b) meets the requirements of section 56 (residence etc).

(2) The first condition is that the individual is registered as a blind person in a register kept under section 29 of the National Assistance Act 1948 (c. 29) (registers kept by local authorities in England and Wales).

(3) The second condition is that—

(a) the individual is ordinarily resident in Scotland or Northern Ireland, and

(b) because of the individual's blindness, the individual is unable to do any work for which eyesight is essential.

(4) If an individual who is entitled to a blind person's allowance for a particular tax year—

(a) became registered as a blind person in a register kept under section 29 of the National Assistance Act 1948 in the tax year, but

(b) obtained the evidence of blindness on the basis of which the registration was made in the preceding tax year,

the individual is treated as having met the first condition for the whole of the preceding tax year.

39 Transfer of part of blind person's allowance to a spouse or civil partner U.K.

(1) This section applies to an individual who is entitled to a blind person's allowance under section 38 for a tax year if—

(a) the individual is a person whose spouse or civil partner is living with the individual for the whole or any part of the tax year, and

(b) the spouse or civil partner meets the requirements of section 56 (residence etc).

(2) If—

(a) the allowance exceeds the individual's remaining relievable income,

(b) the individual makes an election, and

(c) the individual's spouse or civil partner makes a claim,

the individual's spouse or civil partner is entitled to an allowance for the tax year equal to the amount of the excess.

(3) The individual's remaining relievable income is the amount found by—

(a) taking the amount of the individual's net income, and

(b) subtracting any personal allowance to which the individual is entitled for the tax year.

40 Election for transfer of allowance under section 39 U.K.

(1) An election under section 39—

(a) must be made on or before the fifth anniversary of the normal self-assessment filing date for the tax year to which it relates, and

(b) cannot be withdrawn.

(2) If an individual makes an election for a tax year under section 39 the individual is treated as also giving notice under section 51(4) that section 51(1) (tax reductions for married couples and civil partners: transfer of unused relief) is to apply for the tax year.

Supplementary U.K.

41 Allowances in year of death U.K.

(1) Any allowance to which an individual is entitled under this Chapter for any tax year, including the tax year in which the individual dies, is given in full.

(2) If an individual was due to reach the age of 65 in a tax year, but dies in the tax year before reaching that age, the individual is treated for the purposes of section 36 as having reached the age of 65 in the tax year.

(3) If an individual was due to reach the age of 75 in a tax year, but dies in the tax year before reaching that age, the individual is treated for the purposes of sections 36 and 37 as having reached the age of 75 in the tax year.