Income Tax (Earnings and Pensions) Act 2003 section 667

Amounts in excess of taxable maximum

Section 667 limits the amount of income support (and related welfare supplementary payments) that is subject to income tax by introducing a cap known as the "taxable maximum".

• Where a claimant's income support and relevant welfare supplementary payments for a week (or part-week) exceed their taxable maximum for that period, the excess is free of income tax
• The taxable maximum is calculated under section 668, with the applicable rules depending on whether the claimant is a member of a couple or not
• For claimants who are members of a couple, the taxable maximum is determined under section 668(1), (2) and (3)
• For claimants who are not members of a couple, the taxable maximum is determined under section 668(2A) and (3)