Income Tax (Trading and Other Income) Act 2005 section 781

Payments under New Deal 50plus

Section 781 exempts from income tax training grant payments made to participants in the New Deal 50plus scheme.

• Training grants paid under the New Deal 50plus scheme are completely exempt from income tax.
• The exemption applies only to payments made to individuals who are participants in the scheme.
• The scheme covers both the programme established under the Employment and Training Act 1973 and its Northern Ireland equivalent.
• The exemption applies automatically — no claim or election is required.