The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order, SI 2023/36 increases the blind person’s allowance and married couple’s allowance by just over 10% for the 2023–24 tax year. The increase is also applied to the income limit above which the married couple’s allowance is reduced, and the minimum amount after the effect of that reduction. This is the allowance which is available where one member of a married couple or civil partnership was born before 6 April 1935 (as opposed to the more recent ‘transferable tax allowance’).
The Order fulfils the requirement in ITA 2007 s 57 to index the allowances by reference to CPI.
It should also be noted that the s 57 indexation requirement can be overridden by Parliament. For example, s 57 will not apply to the general personal allowance which has been frozen until 2027/28 (see FA 2021 s 5, as amended by FA 2023 s 5).
The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order, SI 2023/36 increases the blind person’s allowance and married couple’s allowance by just over 10% for the 2023–24 tax year. The increase is also applied to the income limit above which the married couple’s allowance is reduced, and the minimum amount after the effect of that reduction. This is the allowance which is available where one member of a married couple or civil partnership was born before 6 April 1935 (as opposed to the more recent ‘transferable tax allowance’).
The Order fulfils the requirement in ITA 2007 s 57 to index the allowances by reference to CPI.
It should also be noted that the s 57 indexation requirement can be overridden by Parliament. For example, s 57 will not apply to the general personal allowance which has been frozen until 2027/28 (see FA 2021 s 5, as amended by FA 2023 s 5).
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