Finance Act 2015

Finance Act 2015

2015 CHAPTER 11

Introduction

Section 16: Bereavement Support Payment: Exemption from Income Tax

Summary

1. This section adds the new Bereavement Support Payment to the table of social security benefits that are wholly exempt from income tax.

Details of the Section

2. Subsection (2) adds the Bereavement Support Payment, and any equivalent in Northern Ireland, to Table B in Section 677 of the Income Tax (Earnings and Pensions) Act 2003. Table B sets out the social security benefits that are wholly exempt from income tax.

3. Subsection (3) adds the Pensions Act 2014 to the list of abbreviations of Acts of Parliament given in Part I of Schedule 1 of the Income Tax (Earnings and Pensions) Act 2003.

4. Subsection (4) sets out that the commencement date of the exemption from income tax will be set out in regulations to be made by HM Treasury.

Background Note

5. The Department for Work and Pensions intend that the Bereavement Support Payment will replace the current Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance for bereaved people who lose their spouse or civil partner from the commencement date.

6. The Department for Work and Pensions are responsible for the Bereavement Support Payment, which was introduced in part 5 of the Pensions Act 2014.

7. The Department for Work and Pensions will announce the commencement date and amount of the Bereavement Support Payments prior to commencement.

8. There will be no change to the tax status of any bereavement benefits already in payment at the date of this change.