Chapter 5U.K.UK social security benefits wholly exempt from income tax
Modifications etc. (not altering text)
C1Pt. 10 Chs. 4, 5: power to amend conferred (22.7.2020) by Finance Act 2020 (c. 14), s. 13(1)(2)
C2Pt. 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
677UK social security benefits wholly exempt from tax: Table BU.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 [F1AND NORTHERN IRELAND WELFARE SUPPLEMENTARY PAYMENTS] [F2etc]
| Social security benefit | Payable under | |
|---|---|---|
| [F3Adult 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... |
| [F6Bereavement support payment | PA 2014 Any provision made for Northern Ireland which corresponds to section 30 of PA 2014 | Section 30] |
| [F7Best 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 |
| [F8Disability 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 |
| [F7Discretionary housing payment | SS(S)A 2018 | Section 88] |
| [F7Discretionary support award | DSR(NI) 2016 | Regulation 2] |
| [F7Flexible support fund payment | ETA 1973 | Section 2] |
| [F7Funeral expense assistance | SS(S)A 2018 | Sections 24 and 35] |
| Guardian’s allowance | SSCBA 1992 SSCB(NI)A 1992 | Section 77 Section 77 |
| [F9Health 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 |
| [F10In-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] |
| [F11Income-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 |
| [F8Job start | ETA 1973 | Section 2] |
| [F12Payments 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 | |
| [F13Payments 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] | |
| [F7Payment under a council tax reduction scheme: England | LGFA 1992 | Section 13A(2)] |
| [F14Pension 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 |
| [F15Personal independence payment | WRA 2012 | Section 77 |
| Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012] | ||
| [F10Return 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 |
| [F16Short-term assistanceF17 | SS(S)A 2018F18 | Section 36] |
| [F19State 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 |
| [F20Universal credit | WRA 2012 | Part 1 |
| Any provision made for Northern Ireland which corresponds to Part 1 of WRA 2012] | ||
| [F21Welfare 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] |
| [F22Winter heating assistanceF23 | SS(S)A 2018 | Section 30] |
| Working tax credit | TCA 2002 | Part 1 |
| [F7Young 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. . . |
| [F25Discretionary housing payment | CSPSSA 2000 | Section 69] |
| [F26Payments made under the Best Start Foods scheme | SSA 1988 | Section 13] |
| [F27Payments 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 |
| [F28Payments 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] |
| [F25Payment under a council tax reduction scheme: Wales | LGFA 1992 | Section 13A(4)] |
| [F29Scottish 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
F1Words 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)
F2Word in s. 677(1) Table B Pt. 1 heading inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(6)
F3Words 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
F4Words 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)
F5Words 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)
F6Words 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)
F7Words in s. 677(1) Table B Pt. 1 inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(5)
F8Words 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)
F9Words 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
F10Words 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)
F11Words 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.
F12Words 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)
F13Words 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)
F14Words 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)
F15Words 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
F16Words 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)
F17At 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.
F18This abbreviation is defined, in Part 1 of Schedule 1 to ITEPA, as Social Security (Scotland) Act 2018.
F19Words 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
F20Words 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)
F21Words 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)
F22Words 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)
F23At 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.
F24Words 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)
F25Words in s. 677(1) Table B Pt. 2 inserted (12.2.2019) by Finance Act 2019 (c. 1), s. 12(7)
F26Words 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)
F27Words 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)
F28Words 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)
F29Words 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)
C3S. 677 modified (22.12.2021) by The Income Tax (Exemption of Social Security Benefits) Regulations 2021 (S.I. 2021/1341), regs. 1(1), 6
C4S. 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
C5S. 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)