Non-taxable state benefits

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Non-taxable state benefits

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

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 that the majority of benefits are 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 are

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+™
Powered by Tolley+™
  • 03 Sep 2026 13:55

Popular Articles

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more Read more

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more