The £3,130 Tax-Free Allowance is a new move by HMRC that could provide welcome financial relief to thousands of UK households. With inflation and the cost of living still putting pressure on families, this added allowance could ease some of the stress by reducing how much income tax certain individuals and their partners need to pay. It is not a general tax break for everyone, but it could be a game-changer for those who qualify.

In this post, we will explain how the £3,130 Tax-Free Allowance works, who qualifies, and what you need to do to claim it. This is not just about a tax cut. It is about making sure your family does not miss out on money that you are legally entitled to. We will break down the details in a way that is easy to understand and give you a step-by-step look at how to take full advantage of this allowance.

HMRC Announces £3,130 Tax-Free Allowance: What It Means for You

The £3,130 Tax-Free Allowance is tied to the Blind Person’s Allowance, which has now been increased to give more support to eligible individuals and their families. This allowance is specifically for those who are certified as severely sight-impaired. It adds to your Personal Allowance, meaning you can earn more before paying any income tax. What makes it even more useful is that if the person who qualifies does not earn enough to use the full amount, they can transfer it to their spouse or civil partner, as long as that partner is a taxpayer.

This is not a benefit based on income. It is based on health status and proper certification. Many families do not know this allowance exists or that they could claim it for past years. That is why understanding how the allowance works is so important. You are not only protecting your current finances but also opening the door to potential back payments from HMRC.

Overview of the £3,130 Tax-Free Allowance

Key Information	Details
Allowance Name	Blind Person’s Allowance
New Amount for 2025-26	£3,130
Who Can Claim	Individuals registered as severely sight-impaired
Certification Requirement	Must be registered with a local authority and certified by an ophthalmologist
Transferable to Partner	Yes, to a spouse or civil partner who pays tax
Tax Saving at Basic Rate (20%)	Up to £626 per year
Tax Saving at Higher Rate (40%)	Up to £1,252 per year
Claim Method	By contacting HMRC directly by phone or post
Backdating Option	Available for up to 4 previous tax years
Applies in Addition to Personal Allowance	Yes

Who Qualifies for the Boost?

Not everyone is eligible for the £3,130 Tax-Free Allowance. This specific benefit is designed for people who are officially registered as severely sight-impaired. The first step to qualifying is receiving certification from a professional ophthalmologist. Then, that certification needs to be officially registered with your local authority. Without this registration, you cannot move forward with a claim.

It is important to note that this is not tied to how much money you make. It does not matter if your income is low or high. The only thing that matters is the official registration of a severe visual impairment. Once this step is complete, you can begin the process of applying through HMRC.

The Blind Person’s Allowance

The Blind Person’s Allowance is not new. It has been around for many years, but the 2025-26 update increases its value to £3,130. This amount is added to your standard Personal Allowance, meaning you can earn more money tax-free. For someone who qualifies, this could be a much-needed source of relief, especially in a time when bills and prices continue to rise.

This allowance helps recognise the added daily costs that come with visual impairment. Whether it is transportation, specialised tools, or general accessibility support, these expenses can add up. By allowing more of your income to go untaxed, the government is giving a little more breathing room to families who need it.

Transferring the Allowance

One of the best parts of the £3,130 Tax-Free Allowance is that it does not need to go unused if the person who qualifies has no taxable income. In that case, they can transfer the allowance to their spouse or civil partner, as long as the partner is a taxpayer. This makes sure the household does not lose the value of the allowance.

However, the transfer is only available if the two people are in a legal marriage or civil partnership. If you are in a long-term relationship but not legally joined, the transfer option is not available. Also, the receiving partner must be paying tax to benefit from the transfer. Otherwise, the value of the allowance will still go unused.

Claiming Your £3,130

Claiming the £3,130 Tax-Free Allowance is not automatic. You have to take action. This means contacting HMRC directly, either by phone or by post. Many people assume that allowances like this will be applied through their payroll, but that is not the case here.

You will need to provide documentation that proves your registration as severely sight-impaired. Once HMRC verifies your status, they will update your tax code so the new allowance is reflected. If you are transferring the allowance to your spouse or civil partner, they will also receive a revised tax code with the benefit applied.

Backdating the Claim

If you or your partner have been eligible for the £3,130 Tax-Free Allowance in previous years but never claimed it, there is good news. HMRC allows you to backdate your claim for up to four tax years. That could mean a lump sum refund, depending on your tax situation during those years.

To do this, you will need to gather the necessary documentation showing the date your visual impairment was registered and contact HMRC. The earlier you act, the more likely you are to secure back payments. This could be a welcome financial boost, especially at a time when every bit of support matters.

Impact on Family Finances

When you do the math, the £3,130 Tax-Free Allowance can make a big difference. At the basic income tax rate of 20 percent, the savings come to around £626 per year. For higher-rate taxpayers, the savings are even greater—up to £1,252 annually. If you are able to backdate the claim for four years, those numbers multiply fast.

This kind of support can help cover everyday living costs, support care needs, or simply offer extra breathing room in your family budget. For families with extra challenges related to disability, that extra bit of financial support is not just helpful. It is necessary.

Other Tax Allowances

The £3,130 Tax-Free Allowance is just one part of a broader picture of financial support available through HMRC. Families should also explore other options like the Marriage Allowance, which lets lower earners transfer a portion of their personal tax-free allowance to a partner. There is also the Tax-Free Childcare scheme and Child Benefit, which can make a big difference depending on your family structure and income level.

Many people miss out on tax allowances simply because they do not know they exist. Taking the time to review what is available could save you hundreds, even thousands of pounds every year. It is worth a quick look through HMRC’s full list of current reliefs to make sure you are not missing out.

FAQs

1. What is the £3,130 Tax-Free Allowance?
It is a tax relief offered to people who are officially registered as severely sight-impaired, allowing them to earn an extra £3,130 without paying income tax.

2. Can I transfer the allowance to my partner?
Yes, if you are married or in a civil partnership and your partner is a taxpayer, the unused portion of the allowance can be transferred.

3. How do I claim the allowance?
You need to contact HMRC by phone or post and provide proof of your registration as severely sight-impaired. HMRC will then adjust your tax code.

4. Can I claim the allowance for past years?
Yes, you can backdate your claim for up to four tax years and may be eligible for a tax refund for those years.

5. Does income affect eligibility for this allowance?
No, the allowance is not based on your income. It depends only on your official registration as severely sight-impaired.