The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2025
Introduction
On January 21, 2025, the UK government issued a new statutory instrument known as “The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2025.” This Order is designed to update the monetary values of two specific allowances within the UK income tax system.
Blind Person’s Allowance
The Blind Person’s Allowance is a tax deduction that reduces the taxable income of individuals who are legally blind. For the 2025-26 tax year, the Order has increased the value of this allowance from £2,850 to £2,900. This means that eligible individuals will be able to deduct this amount from their income before calculating their tax liability.
Married Couple’s Allowance
The Married Couple’s Allowance is a tax reduction that is available to married couples and civil partners. It allows one spouse to transfer a portion of their tax-free personal allowance to their partner. For the 2025-26 tax year, the Order has increased the value of this allowance from £1,385 to £1,430. As a result, married couples and civil partners can now transfer up to this amount of their personal allowance to their spouse or civil partner.
Implications
These changes to the Blind Person’s Allowance and Married Couple’s Allowance will have a positive impact on the financial position of eligible individuals and couples. By increasing the value of these allowances, the government is providing additional tax relief to those who need it most.
Effective Date
The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2025 came into effect on April 6, 2025. This means that the updated allowance values apply to income earned from April 6, 2025 onwards.
Conclusion
The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2025 is a significant update to the UK income tax system. By increasing the value of these two allowances, the government is supporting vulnerable individuals and married couples, providing them with additional financial assistance.
The Income Tax (Indexation of Blind Person’s Allowance and Married Couple’s Allowance) Order 2025
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