Income Tax (Earnings and Pensions) Act 2003 section 577

United Kingdom social security pensions

Section 577 identifies the six UK social security benefits that are subject to income tax as pension income, and defines each of them.

• Six types of UK social security benefit are taxable as pension income: the state pension, graduated retirement benefit, industrial death benefit, widowed mother's allowance, widowed parent's allowance, and widow's pension
• Social security pension lump sums are excluded from this section and are dealt with separately under the Finance (No. 2) Act 2005
• The state pension covers all categories: Category A (based on a person's own contributions), Category B (based on a spouse's contributions), and Category D (for those over 80 who do not qualify for Category A or B), as well as the new single-tier state pension under the Pensions Act 2014
• A partial exemption applies to any part of these pensions that relates to an increase for a dependent child

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