Is Disability allowance taxable.

[sallybb]

My father in law recently died and my husband is now sorting out his finances and tax return. For a few months before he died he received disability benefit and carers allowance.( as his benefit was paid due to the result of industrial disease). Does anyone know if this is taxable income.

[Ethel]

It is exempt from Income Tax:

Non-means tested benefits

The following non-means tested benefits are exempt from tax:-

* attendance allowance
* child benefit, guardian�s allowance and one parent benefit
* child dependency additions paid with widowed mother�s allowance, retirement pension and incapacity benefit
* Christmas bonus
* disability living allowance
* disablement benefit, constant attendance allowance and exceptionally severe disablement allowance
* lower rate short-term incapacity benefit and transitional awards of incapacity benefit

http://www.adviceguide.org.uk/nm/index/life/ta x/tax-exempt_and_taxable_income.htm

[themas]

You say he received carer's allowance. This is paid to someone who is looking after someone else who is disabled. If he did get this, it is taxable.

[sallybb]

ethel and themas, thanks for your help