Income Tax (Earnings and Pensions) Act 2003 section 668

Taxable maximum

Section 668 explains how to calculate the "taxable maximum" — the cap on the amount of strike-related income support that can be subject to income tax.

• Where a couple's income support is based solely on their own circumstances, the taxable maximum for the week is half the applicable amount.
• Where the income support also includes amounts for other people (such as children), the taxable maximum is half of only the portion attributable to the couple — amounts for others are excluded from the tax charge.
• Where the claimant is not part of a couple, the taxable maximum equals the full applicable amount for the week.
• Where income support is paid for only part of a week, the taxable maximum is proportionally reduced using the formula: (number of days paid ÷ 7) × the full-week taxable maximum.