Taxable state benefits

Produced by Tolley

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Taxable state benefits
  • Table of taxable UK state benefits
  • Incapacity benefit
  • Contributory employment and support allowance
  • Income support
  • Jobseeker’s allowance
  • Welfare supplementary payments
  • Statutory maternity, paternity, shared parental, adoption, parental bereavement and sick pay
  • Other taxable UK state benefits
  • Taxable foreign state benefits
  • More...

Taxable state benefits

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

Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit entitlements) and some are not.

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

Note that although some state benefits have been devolved to the Scottish Government, the taxable state benefits remain reserved (ie continue to be dealt with on a UK-wide level via Westminster).

This guidance note does not cover the state pension. For details, see the State pension guidance note.

Table of taxable UK state benefits

The following UK state benefits are taxable and should be reported in boxes 13 to 16 on page TR3 of the main tax return (or boxes 4.3 to 4.6 of the short tax return).

State benefitBasis of assessmentPayable underHMRC manual
Bereavement allowance (note that for deaths which occur on or after 6 April 2017, this is replaced by the bereavement support payment which is not taxable)Accruals basisSSCBA 1992, s 39BEIM76173
SSCBA(NI)A 1992, s 39B
Carer’s allowanceAccruals basisSSCBA 1992, s 70EIM76210
SSCB(NI)A 1992, s 70
Carer’s allowance supplementAccruals basisSS(S)A 2018, ss 24, 28
Employment and support allowanceAccruals basisWRA 2007, s 1(2)(a)EIM76185, EIM76186
Any provision made for Northern Ireland which corresponds to the section above
Incapacity benefit *Accruals basisSSCBA 1992, ss 30A(1), (5), 40, 41EIM76180
SSCB(NI)A 1992, ss 30A(1), (5), 40, 41
Income support *Accruals basisSSCBA 1992, s 124EIM76190
SSCB(NI)A 1992, s 123
Jobseeker’s allowance *Receipts basisJobseekers Act 1995, s 1EIM76220
JS(NI)O 1995, Art 3
Statutory adoption payReceipts basisSSCBA 1992, s 171ZLEIM76380
Any provision made for Northern Ireland which corresponds to the section above
Statutory maternity payReceipts basisSSCBA 1992, s 164EIM76360
SSCB(NI)A 1992, s 160
Statutory shared parental pay

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