Blind Person's Allowance (BPA) is an extra tax-free allowance that can significantly reduce the amount of Income Tax paid by eligible individuals. For the current tax year, the allowance is set at £3,250, which means people who qualify can earn more than £15,000 before paying any tax. This is made possible because BPA is added to the standard Personal Allowance, the basic tax-free threshold that applies to everyone.
HMRC has confirmed that the allowance is available to anyone registered as blind or severely sight impaired, and it can also be claimed by those who cannot perform work that requires eyesight. The benefit extends to married couples and civil partners, who may be able to transfer unused allowances to each other.
What is Blind Person's Allowance and how does it work?
Blind Person's Allowance is an additional amount of tax-free income that is added on top of your yearly Personal Allowance. The Personal Allowance is the amount of money you can earn each year before you start paying Income Tax. With BPA, this threshold rises by £3,250, pushing the total above £15,000 for eligible claimants.
The allowance is separate from other tax benefits and does not affect your entitlement to the standard Personal Allowance. If you and your spouse or civil partner are both eligible, you will each receive your own allowance. This means a couple where both partners are eligible can benefit from two allowances, effectively doubling the extra tax-free amount available to the household.
Who can claim Blind Person's Allowance?
You can claim BPA if you meet one of the following criteria:
- You are registered with your local council as blind or severely sight impaired.
- You have a certificate that says you are blind or severely sight impaired, or a similar document from your doctor.
- You cannot do work that eyesight is essential for.
To claim, you need to contact HMRC directly. Once your claim is approved, the allowance is incorporated into your tax code. This means your employer or pension provider will automatically reduce the amount of tax deducted from your pay or pension, without you needing to take any further action.
It is important to note that Blind Person's Allowance is not automatically applied. You must actively claim it, and you may need to provide evidence of your condition. If you are unsure whether you qualify, HMRC can provide guidance on the application process.
Can you transfer Blind Person's Allowance to your partner?
If you do not pay tax or do not earn enough to use all of your Blind Person's Allowance, you can transfer the unused amount to your spouse or civil partner. This is a valuable option for couples where one partner is not working or has a low income.
The transfer is possible if you are married or in a civil partnership and you are living with your partner. Interestingly, your partner does not need to be blind or sight impaired themselves to receive the transferred allowance.
There are also provisions for couples who are unable to live together due to circumstances beyond their control. For example, you can still transfer the allowance if your partner is in residential care, working away from home, serving on an armed forces posting, in prison, or in training or education. This ensures that the allowance is not lost simply because you are temporarily separated.
Andy Burnham addresses Personal Allowance questions
Blind Person's Allowance has come under the spotlight as Prime Minister Andy Burnham faces pressure over the government's approach to tax thresholds. During a recent visit, broadcasters asked Burnham whether he planned to change the income tax Personal Allowance.
Burnham responded by saying: "There is no commitment at this point to change, but we will look at that at the budget." He also acknowledged the difficulty of giving honest answers in politics, adding: "Well, it's funny these days you can't answer a question honestly without then people reading everything else into it."
The prime minister stressed that he wanted to maintain trust in politics and avoid making unfunded promises. He explained that any potential changes to the Personal Allowance would be considered in the wider context of the budget, alongside other fiscal priorities.
His comments were seen as a firm rejection of immediate changes, but left the door open for future adjustments. For now, the standard Personal Allowance remains unchanged, while Blind Person's Allowance continues to provide extra tax-free income for eligible individuals.
Why Blind Person's Allowance is important
Blind Person's Allowance is one of the few tax breaks that can push a person's tax-free income above £15,000. For many people with sight loss, this can represent a significant saving each year. With the rising cost of living, every additional pound of tax-free income helps household budgets stretch further.
If you or someone you know is registered as blind or severely sight impaired, it is worth checking whether you are receiving Blind Person's Allowance. The application process is straightforward, and the financial benefits can be substantial.
As the government considers potential tax changes in the next budget, taxpayers should stay informed. For now, Blind Person's Allowance remains a crucial form of support for the blind and visually impaired community.
