Taxable state benefits

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This guidance note sets out which state benefits are taxable.

The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.

Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit entitlements) and some are not.

More information on the range of state benefits that may be available to individuals in the UK can be found on the GOV.UK website.

For more details of benefits in Scotland, see the Scottish Government website. For information on welfare benefits in Wales, see the Welsh Government website.

The Scotland Act 2016

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Taxable state benefits