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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