Income Tax (Earnings and Pensions) Act 2003 section 676

Increases in respect of children

Section 676 exempts from income tax the portion of certain taxable benefits that relates to an increase for a child.

• Certain social security and similar benefits listed in Table A of the Act may include additional amounts paid in respect of children
• The part of such a benefit that is attributable to a child-related increase is exempt from income tax
• The exemption applies only to the child-related increase, not to the whole benefit
• The underlying benefit must be one of those listed in Table A for this exemption to apply