Commons Sense

House of Commons · Written Ministerial Statement

Clarification of income tax exemptions

10 March 2022 · Treasury

Proposed by Lucy Frazer Con South East Cambridgeshire

ScotlandTaxation

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • Clarification and exemption of certain social security payments from income tax is addressed in the statement.
  • The Government will legislate in Spring 2022 to exempt the new Adult Disability Payment in Scotland and Discretionary Fund payments from income tax.
  • HMRC will not collect any tax due on these payments made during the specified period.

Issue summary

The statement addresses the clarification and exemption of certain social security payments from income tax.

Action requested

The Government will legislate in Spring 2022 to ensure that the new Adult Disability Payment in Scotland and Discretionary Fund payments are exempt from income tax, with retroactive effect from March and April 2022 respectively. HMRC will not collect any tax due on these payments made during this period.

Key facts

  • Government will legislate in Spring 2022.
  • New Adult Disability Payment is exempt from income tax as of 1 March 2022.
  • Discretionary Fund payments are exempt from income tax as of 1 April 2022.
  • HMRC will not collect any tax that may have been due on these payments made during the interim period.
  • The legislation is retroactive.
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