§ Mr. Ridleyasked the Chancellor of the Exchequer if he will list all State benefits, as to whether they are (a) taxable, (b) in principle taxable, but not taxed and (c) not taxable, respectively.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 6th June 1978; Vol. 951, c. 113], gave the following information:
State benefits of an income nature should in principle be taxable in the same way as other sources of income, but exceptions to this general ruie arise for a variety of reasons. It is not possible to draw a clear distinction between categories (b) and (c) of the hon. Member's Question, but the list below shows (a) wholly taxable State benefits, (b) benefits which are partly taxable and partly exempt and (c) benefits not liable to tax.
(a) The following benefits are wholly taxable:
- Industrial death benefit
- Invalid care allowance
- Invalidity allowance when paid with retirement pension
- Mobility allowance
- Old persons' pension
- Retirement pension
- War orphans' pension
- Widowed mothers' allowance
- Widow's allowance
- Widows' pension
(b) The following benefits are partly taxable:
Child dependency additions paid with widows' pension, widow's allowance, widowed mothers' allowance, retirement pension or invalid care allowance for 1978–79 all but £80 per child taxable Child special allowance Guardians allowance War widows' pension-50 per cent. taxable
(c) The following benefits are not taxed:
- (i) Short-term benefits
- Maternity allowance
- Sickness benefit
- Unemployment benefit
- (ii) Industrial injury benefits
- Constant attendance allowance
- Disablement benefit
- Exceptionally severe disablement allowance
- Injury benefit
- Special hardship allowance
244 - Unemployability supplement
- Workmen's compensation supplementation
- (iii) War disablement benefits
- Age allowance
- Allowance for lower standard of occupation
- Clothing allowance
- Comforts allowance
- Constant attendance allowance
- Disablement pension
- Exceptionally severe disablement allowance
- Severe disablement occupational allowance
- Unemployability allowance
- (iv) Means-tested benefits
- Educational maintenance allowance
- Family income supplement
- Hospital patients' travelling expenses
- Rate rebates
- Rent rebates and allowances
- Supplementary benefit
- Uniform and clothing grants
- (v) Other benefits
- Attendance allowance
- Child benefit
- Death grant
- Employment rehabilitation allowance
- Fares to school
- Invalidity allowance when paid with invalidity pension
- Invalidity pension (contributory or noncontributory)
- Job release benefit
- Job search and employment transfer scheme benefits
- Maternity grant
- Student grants
- TOPS training allowances and grants
- under similar Government schemes for those undergoing training