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.

[F1 (3) For the effect of section 809B (claim for remittance basis to apply) applying to an individual for a tax year, see section 809G (no entitlement to personal allowance or blind person's allowance).]

Textual Amendments

F1 S. 34(3) inserted (21.7.2008 with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 76

Personal allowances U.K.

35 Personal allowance for those [F2 born after 5 April 1948] U.K.

[F3 (1)] An individual who makes a claim is entitled to a personal allowance of [F4 £8,105] for a tax year if the individual—

[F5 (a) was born after 5 April 1948, and]

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

[F6 (2) For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess.

(3) If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1.

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

Textual Amendments

F2 Words in s. 35 heading substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(2)(b)

F3 S. 35(1) renumbered (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(1)

F4 Word in s. 35(1) substituted (17.7.2012) by Finance Act 2012 (c. 14), s. 3(1)

F5 S. 35(1)(a) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(2)(a)

F6 S. 35(2)-(4) inserted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(1)

36 Personal allowance for those [F7 born after 5 April 1938 but before 6 April 1948] U.K.

[F8 (1) An individual who makes a claim is entitled to a personal allowance of £10,500, or (if greater) the section 35 amount, for a tax year if the individual—

(a) was born after 5 April 1938 but before 6 April 1948, and

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

(2) [F9 If the allowance under subsection (1) is greater than the section 35 amount, for] an individual whose adjusted net income for the tax year exceeds [F10 £25,400], the allowance under subsection (1)—

(a) is reduced by [F11 an amount equal to half of that excess income], but

(b) is not reduced below [F12 the [F13 section 35 amount].]

[F14 (2A) In this section “the section 35 amount” means the amount of any allowance to which the individual would be entitled under section 35 for the tax year if the individual had been born after 5 April 1948.]

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

Textual Amendments

F7 Words in s. 36 heading substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(d)

F8 S. 36(1) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(a)

F9 Words in s. 36(2) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(b)(i)

F10 Word in s. 36(2) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(h)

F11 Words in s. 36(2)(a) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(b)(ii)

F12 Words in s. 36(2)(b) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(2)

F13 Words in s. 36(2)(b) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(b)(iii)

F14 S. 36(2A) inserted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(3)(c)

37 Personal allowance for those [F15 born before 6 April 1938] U.K.

[F16 (1) An individual who makes a claim is entitled to a personal allowance of £10,660, or (if greater) the section 35 amount, for a tax year if the individual—

(a) was born before 6 April 1938, and

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

(2) [F17 If the allowance under subsection (1) is greater than the section 35 amount, for] an individual whose adjusted net income for the tax year exceeds [F18 £25,400], the allowance under subsection (1)—

(a) is reduced by [F19 an amount equal to half of that excess income], but

(b) is not reduced below [F20 the [F21 section 35 amount].]

[F22 (2A) In this section “the section 35 amount” means the amount of any allowance to which the individual would be entitled under section 35 for the tax year if the individual had been born after 5 April 1948.]

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

Textual Amendments

F15 Words in s. 37 heading substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(d)

F16 S. 37(1) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(a)

F17 Words in s. 37(2) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(b)(i)

F18 Word in s. 37(2) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(h)

F19 Words in s. 37(2)(a) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(b)(ii)

F20 Words in s. 37(2)(b) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2009 (c. 10), s. 4(2)

F21 Words in s. 37(2)(b) substituted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(b)(iii)

F22 S. 37(2A) inserted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by Finance Act 2012 (c. 14), s. 4(4)(c)

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 [F23 £2,100] 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.

Textual Amendments

F23 Word in s. 38(1) replaced (6.12.2011) by The Income Tax (Indexation) Order 2011 (S.I. 2011/2926), art. 3(d)

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 [F24 not more than 4 years after the end of] 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.

Textual Amendments

F24 Words in s. 40(1)(a) substituted (1.4.2010) by Finance Act 2008 (c. 9), s. 118(2), Sch. 39 para. 55; S.I. 2009/403, art. 2(2) (with art. 10)

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.

F25 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F26 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F25 S. 41(2) omitted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by virtue of Finance Act 2012 (c. 14), s. 4(5)

F26 S. 41(3) omitted (17.7.2012) (with effect in accordance with s. 1(8) of the amending Act) by virtue of Finance Act 2012 (c. 14), s. 4(5)