Income exempt from tax

with No Comments

A basic tax tip in everyone’s book is to take advantage of the sources of income exempt from tax.¬† Unfortunately, though perhaps predictably, such income is fairly limited.¬† The following are generally exempt from income tax:

Income from ISAs
Most dividends from Venture Capital Trusts
Income from National Savings Certificates (NS&I) (not National Saving Accounts)
Premium Bond Winnings
Betting or lottery winnings
Many social security benefits (but not state pension or job seekers allowances)
Child benefit (unless recipient or their partner has income exceeding £50,000)
Certain scholarship awards

If your employer or personal company provides any the following, these may be exempt from tax subject to conditions:
Bicycle used for commuting
Mobile phone (must be in employer or company name and be a business contract)
Employer pension contributions
Child care – subject to fairly low limits

David Wilsdon

Print Friendly, PDF & Email