Income Tax Act 2007 section 34

Allowances under Chapter

Section 34 introduces the chapter dealing with personal allowance and blind person's allowance, explains how these allowances are given effect in the income tax calculation, and notes circumstances in which entitlement to these allowances is lost.

• The chapter covers three main topics: entitlement to a personal allowance (section 35), entitlement to a blind person's allowance (section 38), and the ability to transfer part of a blind person's allowance to a spouse or civil partner (section 39).
• Allowances under this chapter are applied at Step 3 of the income tax calculation set out in section 23, meaning they are deducted from an individual's net income to arrive at the taxable amount.
• For tax years before 2025–26, if an individual claims the remittance basis under section 809G, they lose entitlement to all allowances under this chapter for that year.
• For tax years from 2025–26 onwards, if an individual makes a foreign income claim, a foreign employment election or a foreign gain claim under section 845E of ITTOIA 2005, they similarly lose entitlement to all allowances under this chapter for that year.