Part 10Social security income

Chapter 4Taxable UK social security benefits: exemptions

Incapacity benefit

663Long-term incapacity benefit: previous entitlement to invalidity benefit

1

No liability to income tax arises on long-term incapacity benefit if—

a

a person is entitled to the benefit for a day of incapacity for work which falls in a period of incapacity for work which is treated for the purposes of that benefit as having begun before 13th April 1995, and

b

the part of that period which is treated as having fallen before that date includes a day for which that person was entitled to invalidity benefit.

2

In this section—

  • “invalidity benefit” means invalidity benefit under—

    1. a

      Part 2 of SSCBA 1992, or

    2. b

      Part 2 of SSCB(NI)A 1992;

  • “long-term incapacity benefit” means incapacity benefit payable under—

    1. a

      section 30A(5), 40 or 41 of SSCBA 1992, or

    2. b

      section 30A(5), 40 or 41 of SSCB(NI)A 1992.

664Short-term incapacity benefit not payable at the higher rate

1

No liability to income tax arises on short-term incapacity benefit unless it is payable at the higher rate.

2

In this section—

a

“short-term incapacity benefit” means incapacity benefit payable under—

i

section 30A(1) of SSCBA 1992, or

ii

section 30A(1) of SSCB(NI)A 1992;

b

the reference to short-term incapacity benefit payable at the higher rate is to be construed in accordance with—

i

section 30B of SSCBA 1992, or

ii

section 30B of SSCB(NI)A 1992.