Income Tax (Earnings and Pensions) Act 2003 section 681

Taxable and other foreign benefits: exemptions

Section 681 provides exemptions from income tax for certain foreign social security benefits that correspond to exempt UK benefits.

• A taxable foreign benefit is exempt from income tax to the same extent that its corresponding UK benefit is exempt
• Foreign benefits that are substantially similar in character to the exempt UK social security benefits listed in Table B are also wholly exempt from income tax
• A taxable foreign benefit is one that falls within the scope of section 678, meaning it is substantially similar to a taxable UK benefit listed in Table A
• The exemption removes any charge to income tax, not just a charge under the social security income rules