People with health issue could get extra £3,000 tax-free allowance

People with health issue could get extra £3,000 tax-free allowance Newspoint | 11/05/2025 14:39:27

Those with severe visual impairments could be eligible for an extra £3,130 in personal allowance every tax year. If they're unable to utilise the entire amount themselves, it can be transferred to others.

The personal allowance is the annual income threshold before income tax is applied. For most people, this tax-free limit is set at £12,570.

However, the lesser-known provides an additional sum. While the standard personal allowance is frozen until 2028, the Blind Person's Allowance is tied to inflation and increases annually, currently standing at £3,130 for the 2025/2026 tax year.

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This means that eligible individuals on the basic income tax band can earn up to £15,700 this year before they are required to pay income tax. According to , this could result in savings of up to £614 per annum.

Eligibility varies depending on your location within the UK. In England and Wales, you must be registered as blind or severely sight-impaired with your local council and possess a certificate or similar document from your doctor confirming your condition.

If you reside in or Northern Ireland, you may qualify if you're unable to perform work that requires essential eyesight and have a certificate or similar document from your doctor confirming that you're blind or severely sight-impaired.

To claim the tax-free allowance, you need to ring HMRC on 0300 200 3301. This line is open from Monday to Friday, 8am to 6pm, excluding bank holidays.

The notes that claims for this tax allowance can be backdated up to four tax years. This means you can currently backdate it to the 2020/2021 tax year if you were eligible at that time.

If you don't pay tax or can't utilise all of this additional allowance, you can transfer the unused portion to others who meet certain criteria. They must be your spouse or civil partner and reside with you.

They don't have to be blind or visually impaired to qualify. You can also transfer the allowance if you aren't cohabiting due to:.

Illness or old age
Working away from home
Being posted in the armed forces
Being in prison
Being in training or education

To transfer the allowance, you can use form 575 and call HMRC on 0300 200 3301. This form is available in various formats, including braille.