Income Tax (Earnings and Pensions) Act 2003 section 673

Taxable maximum: income-based jobseeker's allowance

Section 673 explains how to calculate the taxable maximum for a week when a claimant receives (or is treated as receiving) an income-based jobseeker's allowance.

• A single claimant's taxable maximum equals the age-related amount that would apply if they were entitled to a contribution-based jobseeker's allowance for that week.
• A claimant who is a member of a couple has a taxable maximum equal to the portion of the applicable amount included in the couple's jobseeker's allowance for that week.
• If the claimant's partner is barred from jobseeker's allowance because of involvement in a trade dispute, the taxable maximum is halved to half of the applicable amount portion for the couple.
• Any increase in the allowance attributable to children or other dependants is excluded from the taxable maximum and is therefore not subject to income tax.