Written Question·Treasury·UIN 43258
Social Security Benefits: Taxation
Tabled: 1 April 2025
Answered: 9 April 2025
Question
Neil Duncan-Jordan
Labour — Poole
To ask the Chancellor of the Exchequer, how she determines which state benefits are (a) subject to and (b) exempt from tax.
Answer
James MurrayThe tax treatment of social security benefits depends on their purpose. Generally, benefits that replace income are subject to tax, while those intended to support specific needs are exempt.