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EIM76100 | Social security benefits: list of non-taxable social security benefits

From HM Revenue & Customs · Employment Income Manual

Part 10 ITEPA 2003

UK social security benefits specified at Table B Parts 1 and 2 at section 677(1) ITEPA 2003 are wholly exempt from tax.

The following benefits are not taxable:

  • Adult Disability Payment, administered by the Scottish Government

  • Attendance Allowance

  • Bereavement Support Payment (see EIM76171)

  • Best start grant

  • Child Benefit

  • Child Tax Credit

  • Cold Weather Payments, see also Winter Fuel payment

  • Council Tax Benefit, administered by local authorities

  • Council Tax Rebate Discretionary Fund (including any corresponding scheme or grant in Scotland, Wales or Northern Ireland)

  • Constant Attendance Allowance, see industrial disablement benefit below

  • Crisis and Resilience Fund Grant (including any corresponding scheme or grant in Scotland, Wales or Northern Ireland)

  • Disability Living Allowance

  • Discretionary housing payment

  • Discretionary support award

  • Flexible support fund payment

  • Funeral expenses payment (previously known as Funeral Expense Assistance)

  • Guardian's Allowance

  • Household Support Fund Grant (including any corresponding scheme or grant in Scotland, Wales or Northern Ireland)

  • Incapacity benefit for first 28 weeks of entitlement, taxable therafter (see EIM76180)

  • Industrial Injuries Benefit, a general term covering industrial injuries pension, reduced earnings allowance, retirement allowance, constant attendance allowance and exceptionally severe disablement allowance

  • In-work emergency discretion fund payment

  • Maternity Allowance, see EIM76361

  • Payments out of the Social Fund to people on a low income to help with maternity expenses, funeral costs, financial crises and as community care grants. The fund also makes interest-free loans.

  • Payments to reduce under-occupation by housing benefit claimants

  • Payment under a council tax reduction scheme

  • Pensioner's Christmas Bonus

  • Personal Independence Payment

  • Reduced Earnings Allowance, see industrial disablement benefit above

  • State Pension credit

  • Universal Credit

  • War Widow's pension, see EIM76103

  • Welfare supplementary payment payable pursuant to a reduction in the amount payable of State Pension credit

  • Welfare supplementary payment payable pursuant to a reduction in the amount payable of State Pension tax credit

  • Welfare supplementary payment payable pursuant to a reduction in the amount payable of Working Tax Credit

  • Welfare supplementary payment payable pursuant to a reduction of the amount payable of employment and support allowance

  • Welfare supplementary payment payable pursuant to a reduction of the amount payable of housing benefit

  • Welfare supplementary payment payable pursuant to the loss of Disability Living Allowance

  • Winter Fuel payment

  • Working Tax Credit

  • Young carer grant

With regard to wounds and disability pensions for service with the forces see EIM75920 and for allowances payable to civilians in respect of war injuries see EIM75080.

Certain foreign social security payments are exempt from UK tax (see EIM76009).