Social security benefits: list of non-taxable social security benefits
Part 10 ITEPA 2003
UK social security benefits specified at Table B Parts 1 and 2 at Section 677(1) ITEPA 2003 are wholly exempt from tax.
The following benefits are not taxable. The benefits are described at the paragraphs mentioned below:
- Attendance Allowance
- Back to Work Bonus (see EIM76223)
- Bereavement Payment (see EIM76171), replaced Widow’s Payment from 9 April 2001
- Child Benefit
- Child’s Special Allowance
- Child Tax Credit
- Cold Weather Payments, see also Winter Fuel payment
- Council Tax Benefit, administered by local authorities
- Constant Attendance Allowance, see industrial disablement benefit below
- Disability Living Allowance
- Income related Employment and Support Allowance (see EIM76186)
- Exceptionally Severe Disablement Allowance, see industrial disablement benefit below
- Guardian’s Allowance
- Housing Benefit, administered by local authorities
- Incapacity Benefit for first 28 weeks of entitlement, taxable thereafter (see EIM76180)
- Income Support, certain payments (see EIM76190)
- Industrial Injuries Benefit, a general term covering industrial injuries pension, reduced earnings allowance, retirement allowance, constant attendance allowance and exceptionally severe disablement allowance
- Invalidity Benefit, replaced by Incapacity benefit from April 1995 but still payable where invalidity commenced before April 1995.
- In-work credit
- In-work emergency discretion fund payment
- In-work emergency fund payment
- Maternity Allowance, see EIM76361
- Payments out of the Social Fund to people on a low income to help with maternity expenses, funeral costs, financial crises and as community care grants. The fund also makes interest-free loans.
- Pensioner’s Christmas Bonus
- State Pension credit
- Reduced Earnings Allowance, see industrial disablement benefit above
- Retirement Allowance, see industrial disablement benefit above
- Return to work credit, including the self-employment credit
- Severe Disablement Allowance
- Universal Credit
- War Widow’s pension, see EIM76103
- Winter Fuel payment
- Working Tax Credit.
Certain foreign social security payments are exempt from UK tax (see EIM76009).