Taxable state benefits

By Tolley

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

  • Taxable state benefits
  • Table of taxable UK state benefits
  • Taxable foreign 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).

Scotland Act 2016, ss 22–35 (subscription sensitive)

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)

More on Social security benefits: