Non-taxable state benefits

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

The majority of state benefits (also called social security benefits) are managed by the Department for Work and Pensions (DWP) via the Jobcentre Plus.

More information on the range of state benefits that may be available to individuals in the UK can be found on the GOV.UK website.

For more details of benefits in Scotland, see the Scottish Government website. For information on welfare benefit in Wales, see the Welsh Government website.

Significant welfare powers have been devolved to the Scottish Government, including the right to create new benefits and responsibility for some existing benefits. The tax status of benefits is determined by the UK Government.

The position in Wales is under review, with the majority of benefits administered at UK level, although the Welsh Government and local authorities in Wales continue to administer some grants and allowances. For an overview of the policy position, see the Wales Centre for Public Policy website.

Table of non-taxable UK state benefits

For completeness, the table below is based on ITEPA 2003, s 677, which includes some benefits which

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more

Value Added Tax

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more

Employment Tax

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more

Non-taxable state benefits