TCTM04303 - Pensions Income: Pensions, other payments and benefits disregarded in the calculation of pension income

»Ê¹ÚÌåÓýapp Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 5 (2), Table 2.

»Ê¹ÚÌåÓýapp following pensions and other payments are disregarded:

  • A wounds pension or disability pension to the extent disregarded under section 641 of the ITEPA 2003 (War Pension).
  • An annuity or additional pension payable to a holder of the Victoria Cross, George Cross or any other decoration mentioned in section 638 of the ITEPA 2003 (War pension)
  • »Ê¹ÚÌåÓýapp amount of a pension or allowance to which section 639 of the ITEPA 2003 applies that is not taxable by virtue of section 639 of the ITEPA 2003 (War pension)
  • A pension or allowance by reason of payment of which a pension or allowance specified in section 639 of the ITEPA 2003 is withheld or abated. »Ê¹ÚÌåÓýapp amount to be disregarded is the amount treated as falling within section 639 of ITEPA by virtue of section 640(2) of that Act. (War Pension)
  • A mobility supplement, or a payment in respect of attendance, paid in conjunction with a war pension. (War pension)
  • A pension awarded at the supplementary rate under article 27(3) of the Personal Injuries (Civilians) Scheme 1983. »Ê¹ÚÌåÓýapp amount to be disregarded as income is the amount for the time being specified in paragraph 1(c) of Schedule 4 to the Scheme (currently £34.20 per week). (War pension)
  • A pension awarded on retirement through disability caused by injury on duty or by a work- related illness. »Ê¹ÚÌåÓýapp amount to be disregarded is the amount by which the pension exceeds what would have been payable if the retirement had been on grounds of ill- health caused other than by an injury or illness by virtue of the legislation and thus disregarded for tax credit purposes as well.( Section 644(3) of the ITEPA 2003)
  • A lump sum on which no liability to income tax arises by virtue of section 636A of the ITEPA 2003.
  • Coal or smokeless fuel ( or an allowance in lieu of) provided for former colliery workers and their widows under section 646(1) of the ITEPA 2003
  • Any amount deductible for income tax for donations to charity under section 713 (the payroll deduction scheme) of the ITEPA 2003