Decision Makers Guide - DMG38109

Calculation of deduction for notional income tax: Income tax allowances: Additional personal allowance (ceased 06/04/00)

An additional personal allowance equal to the married couple's allowance is given to one member of an unmarried couple or to a lone parent where
1) that person is entitled to a personal allowance and
2) there is a child or young person who

2.1) lives with the person for the whole or part of the tax year and

2.2) is the person's own child or step child or

2.2a was legally adopted before the age of 18 years by the person or

2.2b is being maintained at the claimant's or partner's own expense and

2.3) is under 18 at the beginning of the tax year (but see DMG38103).

Note In the case of an unmarried couple, the decision maker should always set the additional personal allowance against the man's earnings unless there is evidence to the contrary (DMG38108). The decision maker can allow only one additional personal allowance even though more than one child or young person may be living with the person. From 6.4.99 this allowance attracts tax relief at 10% only (previously 15% from 6.4.95 to 5.4.99).

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