Income Tax (Earnings and Pensions) Act 2003

Chapter 5 U.K. UK social security benefits wholly exempt from income tax

Modifications etc. (not altering text)

C1 Pt. 10 Chs. 4, 5: power to amend conferred (22.7.2020) by Finance Act 2020 (c. 14), s. 13(1)(2)

C2 Pt. 10 Ch. 5 modified (with effect in accordance with reg. 4(3) of the amending S.I.) by The Income Tax (Tax Treatment of Carer Support Payment and Exemption of Social Security Benefits) Regulations 2023 (S.I. 2023/1148), regs. 1(1), 4

677 UK social security benefits wholly exempt from tax: Table B U.K.

(1) No liability to income tax arises on the United Kingdom social security benefits listed in Table B.

TABLE B—PART 1

BENEFITS PAYABLE UNDER PRIMARY LEGISLATION [F1 AND NORTHERN IRELAND WELFARE SUPPLEMENTARY PAYMENTS] [F2 etc]

Social security benefit	Payable under
[F3 Adult Disability Payment	SS(S)A 2018	Sections 24 and 31]
Attendance allowance	SSCBA 1992 SSCB(NI)A 1992	Section 64 Section 64
Back to work bonus	JSA 1995 JS(NI)O 1995	Section 26 Article 28
Bereavement payment	F4 ... F5 ...	F4 ... F5 ...
[F6 Bereavement support payment	PA 2014 Any provision made for Northern Ireland which corresponds to section 30 of PA 2014	Section 30]
[F7 Best start grant	SS(S)A 2018	Sections 24 and 32]
Child benefit	SSCBA 1992 SSCB(NI)A 1992	Section 141 Section 137
Child’s special allowance	SSCBA 1992 SSCB(NI)A 1992	Section 56 Section 56
Child tax credit	TCA 2002	Part 1
Council tax benefit	SSCBA 1992	Section 131
[F8 Disability assistance for children and young people	SS(S)A 2018	Sections 24 and 31]
Disability living allowance	SSCBA 1992 SSCB(NI)A 1992	Section 71 Section 71
[F7 Discretionary housing payment	SS(S)A 2018	Section 88]
[F7 Discretionary support award	DSR(NI) 2016	Regulation 2]
[F7 Flexible support fund payment	ETA 1973	Section 2]
[F7 Funeral expense assistance	SS(S)A 2018	Sections 24 and 35]
Guardian’s allowance	SSCBA 1992 SSCB(NI)A 1992	Section 77 Section 77
[F9 Health in pregnancy grant	SSCBA 1992 SSCB(NI)A 1992	Section 140A Section 136A]
Housing benefit	SSCBA 1992 SSCB(NI)A 1992	Section 130 Section 129
[F10 In-work credit	ETA 1973 ETA(NI) 1950	Section 2 Section 1
In-work emergency discretion fund payment	ETA 1973	Section 2
In-work emergency fund payment	ETA(NI) 1950	Section 1]
[F11 Income-related employment and support allowance	WRA 2007	Section 1(2)(b)
	Any provision made for Northern Ireland which corresponds to section 1(2)(b) of WRA 2007]
Industrial injuries benefit (apart from industrial death benefit)	SSCBA 1992 SSCB(NI)A 1992	Section 94 Section 94
[F8 Job start	ETA 1973	Section 2]
[F12 Payments made under the Parental Transitions Support scheme	LGSA 2003	Section 20]
Payments out of the social fund	SSCB(NI)A 1992	Section 138
	SSCBA 1992	Section 134
[F13 Payments to secure the provision of food and drink, free of charge, to a person to whom a school lunch must be provided under section 53(2) of the Education (Scotland) Act 1980 , Article 58 of the Education and Libraries (Northern Ireland) Order 1986 , section 512(3) of the Education Act 1996 or Article 15(2) of the Further Education (Northern Ireland) Order 1997	SW(S)A 1968	Section 12
	C(S)A 1995	Section 22
	LGSA 2003	Section 20
	GOWA 2006	Section 60
	FPA(NI) 2009	Section 4
	LGE(W)A 2021	Section 24]
[F7 Payment under a council tax reduction scheme: England	LGFA 1992	Section 13A(2)]
[F14 Pension Age Disability Payment	SS(S)A 2018	Sections 24 and 31]
Pensioner’s Christmas bonus	SSCBA 1992 SSCB(NI)A 1992	Section 148 Section 144
[F15 Personal independence payment	WRA 2012	Section 77
	Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012]
[F10 Return to work credit	ETA 1973 ETA(NI) 1950	Section 2 Section 1]
Severe disablement allowance	SSCBA 1992 SSCB(NI)A 1992	Section 68 Section 68
[F16 Short-term assistanceF17	SS(S)A 2018F18	Section 36]
[F19 State maternity allowance	SSCBA 1992	Section 35 or 35B
	Any provision made for Northern Ireland which corresponds to section 35 or 35B of SSCBA 1992]
State pension credit	SPCA 2002 SPCA(NI) 2002	Section 1 Section 1
[F20 Universal credit	WRA 2012	Part 1
	Any provision made for Northern Ireland which corresponds to Part 1 of WRA 2012]
[F21 Welfare supplementary payment payable pursuant a reduction of the amount payable of housing benefit	HB(WSP)R(NI) 2017	Regulation 2
	WSPR(NI) 2016	Regulation 4
Welfare supplementary payment payable pursuant to a reduction of the amount payable of employment and support allowance	WSP(LCP)R(NI) 2016	Regulation 8 (when the recipient is entitled to the payment by meeting the condition in regulation 8(2)(b))
	SP(LDRP)R(NI) 2016	Regulation 20, 21 or 22
Welfare supplementary payment payable pursuant to the loss of disability living allowance	WSP(LDLA)R(NI) 2016	Regulation 4, 8, 13 or 14
Welfare supplementary payment payable pursuant to a reduction in the amount payable of state pension credit	WSP(LCP)R(NI) 2016	Regulation 16
Welfare supplementary payment payable pursuant to a reduction in the amount payable of working tax credit	WSP(LDRP)R(NI) 2016	Regulation 27 or 28
Welfare supplementary payment payable pursuant to a reduction in the amount payable of state pension tax credit	WSP(LDRP)R(NI) 2016	Regulation 33 or 34]
[F22 Winter heating assistanceF23	SS(S)A 2018	Section 30]
Working tax credit	TCA 2002	Part 1
[F7 Young carer grant	SS(S)A 2018	Sections 24 and 28]

TABLE B — PART 2

BENEFITS PAYABLE UNDER REGULATIONS

Social security benefit	Payable under regulations made under
F24 . . .	F24 ... F24 ...	F24 . . .
[F25 Discretionary housing payment	CSPSSA 2000	Section 69]
[F26 Payments made under the Best Start Foods scheme	SSA 1988	Section 13]
[F27 Payments made under the Healthy Start scheme	SSA 1988	Section 13]
Payments to reduce under-occupation by housing benefit claimants	WRPA 1999 WRP(NI)O 1999	Section 79 Article 70
[F28 Payments to secure the provision of food and drink, free of charge, to a person to whom a school lunch must be provided under Article 58 of the Education and Libraries (Northern Ireland) Order 1986 or Article 15(2) of the Further Education (Northern Ireland) Order 1997	FAA(NI) 2009	Section 2]
[F25 Payment under a council tax reduction scheme: Wales	LGFA 1992	Section 13A(4)]
[F29 Scottish child payment	SS(S)A 2018	Section 79]

(2) Industrial death benefit is charged to tax under Part 9 (see section 577).

(3) In this section “industrial death benefit” means any benefit payable under—

(a) section 94 of, and Part 6 of Schedule 7 to, SSCBA 1992, or

(b) section 94 of, and Part 6 of Schedule 7 to, SSCB(NI)A 1992.

Textual Amendments

F1 Words in s. 677(1) inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Taxation of Northern Ireland Welfare Supplementary Payments Regulations 2017 (S.I. 2017/338), regs. 1, 15(a)

F2 Word in s. 677(1) Table B Pt. 1 heading inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(6)

F3 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with reg. 3 of the amending S.I.) by The Income Tax (Exemption of Social Security Benefits) Regulations 2022 (S.I. 2022/529), regs. 1(1), 2

F4 Words in s. 677(1) Table B Pt. 1 omitted (6.4.2017) by virtue of Pensions Act 2014 (c. 19), s. 56(1), Sch. 16 para. 48; S.I. 2017/297, art. 3(2) (with arts. 4, 5)

F5 Words in s. 677(1) Table B Pt. 1 omitted (N.I.) (6.4.2017) by virtue of Pensions Act (Northern Ireland) 2015 (c. 5), s. 53(1), Sch. 16 para. 47; S.R. 2017/44, art. 2(2) (with arts. 3, 4)

F6 Words in s. 677(1) inserted (with effect in accordance with s. 16(4) of the amending Act) by Finance Act 2015 (c. 11), s. 16(2)

F7 Words in s. 677(1) Table B Pt. 1 inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(5)

F8 Words in s. 677(1) Table B Pt. 1 inserted (6.4.2020 with effect in relation to the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 12(2)(4)

F9 Words in s. 677(1) Table B Pt. 1 inserted (1.1.2009) by Health and Social Care Act 2008 (c. 14), ss. 138(4), 170(3)(4); S.I. 2008/3137, art. 2

F10 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with s. 46(3) of the amending Act) by Finance Act 2008 (c. 9), s. 46(1)

F11 Words in s. 677(1) Table B Pt. 1 inserted (18.3.2008 for specified purposes) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 24(5); S.I. 2008/787, art. 2(1), Sch.

F12 Words in s. 677(1) Table B Pt. 1 inserted (1.4.2024) by The Income Tax (Exemption of Social Security Benefits) Regulations 2024 (S.I. 2024/287), regs. 1(1), 2(2)

F13 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with reg. 3(4) of the amending S.I.) by The Income Tax (Tax Treatment of Carer Support Payment and Exemption of Social Security Benefits) Regulations 2023 (S.I. 2023/1148), regs. 1(1), 3(2)(a)

F14 Words in s. 677(1) Table B Pt. 1 inserted (21.10.2024) by The Income Tax (Exemption of Social Security Benefits) (No. 2) Regulations 2024 (S.I. 2024/901), regs. 1, 2(2)

F15 Words in s. 677(1) Table B Pt. 1 inserted (8.4.2013 for specified purposes, 10.6.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 9 para. 49; S.I. 2013/358, art. 7(1)(2)(k), Sch. 3; S.I. 2013/1250, art. 2

F16 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with reg. 3 of the amending S.I.) by The Income Tax (Exemption of Social Security Benefits) Regulations 2021 (S.I. 2021/1341), regs. 1(1), 2(a)

F17 At present, the Scottish Ministers have only legislated in relation to eligibility to short-term assistance in cases where, generally, a decision about an individual’s entitlement to child disability payment has been superseded, or the individual is awaiting a re-determination or appeal about child disability payment to be decided. The relevant rules are contained in the Disability Assistance for Children and Young People (Scotland) Regulations 2021 (S.S.I. 2021/174), which came into force on 26 July 2021.

F18 This abbreviation is defined, in Part 1 of Schedule 1 to ITEPA, as Social Security (Scotland) Act 2018.

F19 Words in s. 677(1) Table B Pt. 1 substituted (1.4.2014) by The Social Security (Maternity Allowance) (Participating Wife or Civil Partner of Self-employed Earner) Regulations 2014 (S.I. 2014/606), regs. 1(2), 3

F20 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with s. 13(2) of the amending Act) by Finance Act 2013 (c. 29), s. 13(1)

F21 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Taxation of Northern Ireland Welfare Supplementary Payments Regulations 2017 (S.I. 2017/338), regs. 1, 15(b)

F22 Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with reg. 4 of the amending S.I.) by The Income Tax (Exemption of Social Security Benefits) Regulations 2021 (S.I. 2021/1341), regs. 1(1), 2(b)

F23 At present, the Scottish Ministers have only legislated in relation to eligibility to winter heating assistance for children and young people. The eligibility rules are set out in the Winter Heating Assistance for Children and Young People (Scotland) Regulations 2020 (S.S.I. 2020/352), which came into force on 9 November 2020.

F24 Words in s. 677(1) Table B Pt. 2 repealed (22.7.2004) by Finance Act 2004 (c. 12), Sch. 17 para. 9(5), Sch. 42 Pt. 2(12)

F25 Words in s. 677(1) Table B Pt. 2 inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(7)

F26 Words in s. 677(1) Table B Pt. 2 inserted (with effect in accordance with reg. 3(4) of the amending S.I.) by The Income Tax (Tax Treatment of Carer Support Payment and Exemption of Social Security Benefits) Regulations 2023 (S.I. 2023/1148), regs. 1(1), 3(2)(b)

F27 Words in s. 677(1) Table B Pt. 2 inserted (with effect in accordance with reg. 3(5) of the amending S.I.) by The Income Tax (Tax Treatment of Carer Support Payment and Exemption of Social Security Benefits) Regulations 2023 (S.I. 2023/1148), regs. 1(1), 3(2)(c)

F28 Words in s. 677(1) Table B Pt. 2 inserted (with effect in accordance with reg. 3(4) of the amending S.I.) by The Income Tax (Tax Treatment of Carer Support Payment and Exemption of Social Security Benefits) Regulations 2023 (S.I. 2023/1148), regs. 1(1), 3(2)(d)

F29 Words in s. 677(1) Table B Pt. 2 inserted (6.4.2020 with effect in relation to the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), s. 12(3)(4)

Modifications etc. (not altering text)

C3 S. 677 modified (22.12.2021) by The Income Tax (Exemption of Social Security Benefits) Regulations 2021 (S.I. 2021/1341), regs. 1(1), 6

C4 S. 677 modified (with effect in accordance with regs. 7, 8 of the amending S.I.) by The Income Tax (Exemption of Social Security Benefits) Regulations 2022 (S.I. 2022/529), regs. 1(1), 5

C5 S. 677(1) modified (1.4.2024) by The Income Tax (Exemption of Social Security Benefits) Regulations 2024 (S.I. 2024/287), regs. 1(1), 3(2)