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  • Carers allowance tax implications

    Hi, my wife is retired but has no pension or regular income other than savings interest of around £12,000 per year. This meant that her total tax free allowance was £17,570. However she recently starting claiming carers allowance to help care for an elderly relative, which equates to around £4264 per year. Is the carers allowance regarded as income so that her total tax free allowance reduces to £12,570 or will it remain at £17,570? I cannot locate confirmation on this on the ‘Tax on savings interest’ information on the Gov.uk website so would appreciate your clarification. Thank you