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Document What types of income are non-taxable?

Although this list is not exhaustive, examples of non-taxable income are:
  • Income from a scholarship, exhibition, bursary or similar educational endowment
  • Income from tax-free National Savings and Investments, such as savings certificates
  • Interest and terminal bonuses under Save As You Earn schemes (SAYE)
  • Interest, dividends and bonuses from a Tax Exempt Special Savings Account (TESSA), unless it was closed before the five years were up
  • Interest, dividends and other income from an Individual Savings Account (ISA)
  • Interest, dividends and other income from investments held in a Personal Equity Plan (PEP)
  • Premium Bonds, National Lottery winnings or gambling prizes
  • Student loan income received through Student Finance England

The following benefits are also generally non-taxable:
  • Attendance Allowance
  • Back to Work Bonus
  • Bereavement Payment
  • Child Benefit
  • Child's Special Allowance
  • Council Tax Reduction
  • Constant Attendance Allowance
  • Exceptionally Severe Disablement Allowance
  • Guardian's Allowance
  • Housing Benefit
  • Incapacity Benefit for first 28 weeks of entitlement
  • Income Related Employment and Support Allowance (ESA)
  • Income Support (unless paid while on strike)
  • Industrial Injuries Benefit
  • Invalidity Benefit
  • In-work credit
  • In-work emergency discretion fund payment
  • In-work emergency fund payment
  • Maternity Allowance
  • New Enterprise Allowance
  • Pensioner's Christmas Bonus
  • Pension Credit
  • Personal Independence Payment (PIP) or Disability Living Allowance (DLA)
  • Reduced Earnings Allowance
  • Retirement Allowance
  • Return to work credit (including the self-employment credit)
  • Severe Disablement Allowance
  • Tax Credits
  • Universal Credit

  • War pension (including any care or mobility supplements)

  • War Widow's pension
  • Winter Fuel payments

See also...

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