Chapter 2 - 1.3 - Exempt Income

Question 1

What are the first three examples of income that is exempt from income tax?

Answer 1

• Income from ISAs (including junior)
• Interest from National Savings Certificates (NS&I Certificates)
• Winnings e.g betting, lottery, premium bond

Question 2

What are the second three examples of income that is exempt from income tax?

Answer 2

• Some social security benefits e.g housing benefit
• Scholarships
• Income tax repayment interest

Question 3

What are the final two examples of income that is exempt from income tax?

Answer 3

• Apprenticeship bursaries paid to individuals leaving authority care
• Compensation made under qualifying payment schemes e.g the Windrush compensation scheme