Income and Corporation Taxes Act 1988

Changes over time for: Section 617

Version Superseded: 03/03/2003

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Point in time view as at 02/07/2002. This version of this provision has been superseded.

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Income and Corporation Taxes Act 1988, Section 617 is up to date with all changes known to be in force on or before 25 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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617 Social security benefits and contributions.U.K.

(1)Payments of benefit under [F1Parts II to IV of the Social Security Contributions and Benefits Act 1992], [F2or Parts II to IV of the Social Security Contributions and Benefits (Northern Ireland) Act 1992], except—

(a)sickness benefit, invalidity benefit, attendance allowance, [F3 mobility allowance,] [F4disability living allowance,] severe disablement allowance, maternity allowance, [F5bereavement payments,]F6. . . child’s special allowance and guardian’s allowance; and

(b)so much of any benefit as is attributable to an increase in respect of a child,

shall be charged to income tax under Schedule E.

(2)M1The following payments shall not be treated as income for any purpose of the Income Tax Acts—

(a)payments of income support, [F7working families’ tax credit][F8, [F9disabled person’s tax credit]] or housing benefit under [F10Part VII of the Social Security Contributions and Benefits Act 1992] or [F11Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] other than payments of income support which are taxable by virtue of section 151;

[F12(aa)payments by way of an allowance under [F13paragraph 18 of Schedule 7 to the Social Security Contributions and Benefits Act 1992] and [F14paragraph 18 of Schedule 7 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992];]

[F15(ab)payments of a jobseeker’s allowance, other than payments which are taxable by virtue of section 151A;

(ac)payments of a back to work bonus;]

[F16(ad)payments of a child maintenance bonus;]

[F17(ae)compensation payments made under regulations under section 24 of the Child Support Act 1995 or under any corresponding enactment having effect with respect to Northern Ireland;]

[F18(af)payments made under regulations under section 79 of the Welfare Reform and Pensions Act 1999 or under any corresponding enactment having effect with respect to Northern Ireland;]

[F19(ag)payments of state pension credit under the State Pension Credit Act 2002 or under any corresponding enactment having effect with respect to Northern Ireland;]

(b)payments of child benefit; and

(c)payments excepted by subsection (1) above from the charge to tax imposed by that subsection.

(3)M2Subject to subsection (4) F20. . . below, no relief or deduction shall be given or allowed in respect of any contribution paid by any person under—

(a)Part I of the Social Security [F21Contributions and Benefits Act 1992], or

(b)Part I of the Social Security [F22Contributions and Benefits (Northern Ireland) Act 1992].

[F23(4)Subsection (3) above shall not apply to a contribution if it is a secondary Class 1 contribution [F24, a Class 1A contribution or a Class 1B contribution] (within the meaning of Part I of either of those Acts) and is allowable—

(a)as a deduction in computing profits or gains;

(b)as expenses of management deductible under section 75 or under that section as applied by section 76;

(c)as expenses of management or supervision deductible under section 121;

(d)as a deduction under section 198 from the emoluments of an office or employment; or

(e)as a deduction under section 332(3)(a) from the profits, fees or emoluments of the profession or vocation of a clergyman or minister of any religious denomination.]

(5)F25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in s. 617(1) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(2)

F2Words in s. 617(1) substituted (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 4, 7(2), Sch. 2 para. 33(2)

F3Words in s. 617(1)(a) repealed (N.I.) (6.4.1992) by S.I. 1991/2874, art. 5; S.R. 1992/94, art. 2

F4Words in s. 617(1)(a) inserted (3.2.1992 for certain purposes and 6.4.1992 so far as not in force) by Disablity Living Allowance and Disability Working Allowance Act 1991 (c. 21, SIF 113:1), s. 4(2), Sch. 2 para. 18; S.I. 1991/2167, art. 2(c)(f)

F5Words in s. 617(1)(a) inserted (24.4.2000 for specified purposes and 9.4.2001 otherwise) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 1(2)(a); S.I. 2000/1047, art. 2(2)(a), Sch. Pt 1

F6Words in s. 617(1)(a) repealed (24.4.2000 for specified purposes and 9.4.2001 otherwise) by Welfare Reform and Pensions Act 1999 (c. 30), s. 89(1), Sch. 8 para. 1(2)(b), Sch. 13 Pt. 5; S.I. 2000/1047, art. 2(2)(a), Sch. Pt. 1

F7Words in s. 617(2)(a) substituted (5.10.1999) by Tax Credits Act 1999 (c. 10), s. 20(2), Sch. 1 paras. 1(a), 6(c) (with s. 19)

F8Words in s. 617(2)(a) inserted (10.3.1992 for certain purposes and 6.4.1992 so far as not in force) by Disability Living Allowance and Disability Working Allowance Act 1991 (c. 21, SIF 113:1), s. 7(2), Sch. 3 para. 11; S.I. 1991/2617, art. 2(e)(f)

F9Words in s. 617(2)(a) substituted (5.10.1999) by Tax Credits Act 1999 (c. 10), s. 20(2), Sch. 1 paras. 1(b), 6(c) (with s. 19)