Income Tax (Earnings and Pensions) Act 2003 section 677

UK social security benefits wholly exempt from tax: Table B

Section 677 lists the UK social security benefits that are completely free from income tax, set out in Table B.

• A wide range of UK social security benefits are wholly exempt from income tax, including universal credit, child benefit, personal independence payment, disability living allowance, housing benefit, state pension credit, and many others
• The exempt benefits are split into two parts: Part 1 covers benefits payable under primary legislation, and Part 2 covers benefits payable under regulations
• Industrial death benefit is the one notable exception — although it falls within the broader category of industrial injuries benefit, it is treated as pension income and is taxable under separate rules
• The exemptions apply equally to the corresponding Northern Ireland equivalents of each benefit, as well as to various Scottish social security benefits introduced under the Social Security (Scotland) Act 2018