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Non-taxable income includes:

  • 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