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The Income Tax (Exemption of Social Security Benefits) Regulations 2026

S.I. 2026/211 · Made 4 March 2026

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INCOME TAX

Made 4th March 2026

Laid before the House of Commons 5th March 2026

Coming into force 1st April 2026

The Treasury make the following Regulations in exercise of the powers conferred by section 13(1) and (2)(c) and (d) of the Finance Act 2020f1.

Annotations to the whole text

Footnotes

f1

2020 c. 14. The parliamentary procedure for section 13 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. 20), unless excluded, which the Finance Act 2020 is not.

Contents

  1. 1Citation and commencement
  2. 2Modifications to the Income Tax (Earnings and Pensions) Act 2003
  3. Signature
  4. Explanatory note

1Citation and commencement

These Regulations may be cited as the Income Tax (Exemption of Social Security Benefits) Regulations 2026 and come into force on 1st April 2026.

2Modifications to the Income Tax (Earnings and Pensions) Act 2003

(1)

The Income Tax (Earnings and Pensions) Act 2003f1 is modified as follows.

(2)

Section 677(1) (UK social security benefits wholly exempt from tax: Table B)f2 has effect as if, in Part 1 of Table B (benefits payable under primary legislation and Northern Ireland welfare supplementary payments etc), at the appropriate place, there were inserted—

“Payments made out of the grant known as the Crisis and Resilience Fund that is the subject of guidance published by the Department for Work and Pensions on 21st January 2026 f3LGA 2003f4Section 31
Payments made pursuant to any scheme or grant in Scotland, Wales or Northern Ireland corresponding to the Crisis and Resilience Fund”

.

(3)

In Schedule 1, the Table in Part 1 (abbreviations of Acts and instruments) has effect as if at the appropriate place there were inserted—

“

LGA 2003Local Government Act 2003

”.

Signature

Gen Kitchen

Taiwo Owatemi

Two of the Lords Commissioners of His Majesty's Treasury

4th March 2026

Explanatory note

(This note is not part of the Regulations)

These Regulations modify Chapter 5 of Part 10 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA”), by inserting a new scheme of social security benefits and payments into Table B in section 677 of ITEPA so as to provide that no liability to income tax arises from those benefits and payments.

Regulation 2 modifies Part 1 of Table B in section 677 of ITEPA so that is has effect as if a new row was inserted into it, in order to wholly exempt Crisis and Resilience Fund payments from income tax. It also makes a consequential modification to the Table in Part 1 of Schedule 1 to ITEPA, so that the Table has effect as if the abbreviation for the Local Government Act 2003 (c. 26) were inserted into it.

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