The Income Tax (Exemption of Social Security Benefits) Regulations 2024

Statutory Instruments

2024 No. 287

INCOME TAX

The Income Tax (Exemption of Social Security Benefits) Regulations 2024

Made

4th March 2024

Laid before the House of Commons

5th March 2024

Coming into force

1st April 2024

The Treasury make these Regulations in exercise of the powers conferred by section 13(1) of the Finance Act 2020(1).

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Income Tax (Exemption of Social Security Benefits) Regulations 2024 and come into force on 1st April 2024.

(2) In these Regulations, “ITEPA” means the Income Tax (Earnings and Pensions) Act 2003(2).

Amendment to the Income Tax (Earnings and Pensions) Act 2003

2.—(1) Chapter 5 of Part 10 of ITEPA (social security income) is amended as follows.

(2) In section 677(1)(3), in Table B (UK social security benefits wholly exempt from tax: Table B), in Part 1 (benefits payable under primary legislation and Northern Ireland welfare supplementary payments etc), at the appropriate place insert—

“Payments made under the Parental Transitions Support scheme(4)

LGSA 2003(5)

Section 20”.

Modification to the Income Tax (Earnings and Pensions) Act 2003

3.—(1) Chapter 5 of Part 10 of ITEPA (social security income) is modified as follows.

(2) Section 677(1) has effect as if, in Table B (UK social security benefits wholly exempt from tax: Table B), in Part 1 (benefits payable under primary legislation and Northern Ireland welfare supplementary payments etc), at the appropriate place there were inserted—

“Payments made under the Jobs Plus Pilot(6)

ETA 1973(7)

Section 2”.

Scott Mann

Mike Wood

Two of the Lords Commissioners of His Majesty's Treasury

4th March 2024

Explanatory Note

(This note is not part of the Regulations)

These Regulations make an amendment and provide for a modification to Chapter 5 of Part 10 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA”), so as to provide that no liability to income tax arises on social security benefits of a description specified in the Regulations.

Regulation 2 amends section 677 of ITEPA by inserting a new row into Part 1 of Table B, in order to wholly exempt payments made under the Parental Transitions Support scheme from income tax.

Regulation 3 modifies the effect of section 677 of ITEPA so that payments made pursuant to the Jobs Plus Pilot scheme will be wholly exempt from income tax.

A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.

(1)

2020 c. 14. The Parliamentary procedure for section 13 of the Finance Act 2020 is found at section 1014 of the Income Tax Act 2007 (c. 3), which applies to all powers under the “Income Tax Acts”, as defined by Schedule 1 to the Interpretation Act 1978 (c. 30).

(2)

2003 c. 1.

(3)

Section 677(1) was amended by paragraph 9 of Schedule 17 and Part 2 of Schedule 42 to the Finance Act 2004 (c. 12); paragraph 24 of Schedule 3 to the Welfare Reform Act 2007 (c. 5); section 46 of the Finance Act 2008 (c. 9); section 138 of the Health and Social Care Act 2008 (c. 14); paragraph 49 of Schedule 9 to the Welfare Reform Act 2012 (c. 5); section 13 of the Finance Act 2013 (c. 29); paragraph 48 of Schedule 16 to the Pensions Act 2014 (c. 19); paragraph 47 of Schedule 16 to the Pensions Act (Northern Ireland) 2015 (c. 5); section 16 of the Finance Act 2015 (c. 11); section 12 of the Finance Act 2019 (c. 1); and section 12 of the Finance Act 2020. It was also amended by regulation 3 of S.I. 2014/606; regulation 15 of S.I. 2017/338; regulation 2 of S.I. 2021/1341; regulation 2 of S.I. 2022/529; and regulation 3 of S.I. 2023/1148.

(4)

Details of this scheme have been published at https://www.gov.scot/publications/parental-transitions-support-guidance-for-local-authorities. Paper copies of all relevant documentation relating to the scheme are available for inspection at: His Majesty’s Revenue and Customs, 100 Parliament Street, London SW1A 2BQ.

(5)

This abbreviation is defined, in the table in Part 1 (abbreviations of Acts and instruments) of Schedule 1 to ITEPA, as The Local Government in Scotland Act 2003 (asp 1). This definition was inserted by regulation 3 of S.I. 2023/1148.

(6)

A scheme introduced by the Department for Work and Pensions to improve employment outcomes for those residing in social housing. Payments of financial incentives under the scheme will be administered by the National Learning and Work Institute through housing associations. This scheme was announced by HM Treasury on 12 September 2023 with further detail on the Jobs Plus Pilot provided on 19 February 2024: https://www.gov.uk/government/news/124-million-to-help-change-choices-about-work. Paper copies of all relevant documentation relating to the scheme are available for inspection at: His Majesty’s Revenue and Customs, 100 Parliament Street, London SW1A 2BQ.

(7)

This abbreviation is defined, in the table in Part 1 (abbreviation of Acts and instruments) of Schedule 1 to ITEPA, as the Employment and Training Act 1973 (c. 50). This definition was inserted by section 46 of the Finance Act 2008 (c. 9).