Income Tax (Earnings and Pensions) Act 2003 section 674

Taxable maximum: contribution-based jobseeker's allowance

Section 674 explains how to calculate the weekly taxable maximum for a claimant receiving a contribution-based jobseeker's allowance.

• The section applies where a claimant is paid, or is assumed to be paid, a contribution-based jobseeker's allowance for a given week.
• For a single claimant (not a member of a couple), the taxable maximum equals the age-related amount applicable to that claimant for the week.
• For a claimant who is a member of a couple, the taxable maximum equals the portion of the applicable amount that would be included in respect of the couple if an income-based jobseeker's allowance were payable instead.
• Any increase in the allowance relating to children or adult dependants is excluded from the taxable maximum, ensuring those amounts are not subject to income tax.