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HMRC internal manual

Tax Credits Technical Manual

Income: Employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Removal expenses and benefits

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(4), Table 1(Item 1)

The payment or reimbursement of removal expenses or the provision of removal benefits to which section 271 of ITEPA applies. This is a limited exception of £8000 (section 287 ITEPA) and amounts in excess of £8000 should be included as income for tax credit purposes.

This is identical to the income tax exception. Employment Income Manual EIM03100 refers. Chapter 7, Part 4 of ITEPA


Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.