Income Tax (Earnings and Pensions) Act 2003 section 657

Meaning of "social security income", "taxable benefits" etc.

Section 657 defines the key terms used to identify which social security benefits are taxable and how the chargeable income is determined.

• "Social security income" covers all UK benefits in Table A and Table B, plus certain foreign benefits — encompassing both taxable and exempt benefits
• "Taxable benefits" is a narrower term covering only UK benefits in Table A and certain foreign benefits — it does not include the exempt benefits in Table B
• "Table A" (in section 660) lists the UK social security benefits that are taxable, and "Table B" (in section 677) lists those that are wholly exempt from income tax
• Four statutory payments listed in section 660(2) are excluded from social security income where they are already charged to tax as employment income, to prevent double taxation