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Moving from IB to ESA support group

  • gypsygirl
  • Topic Author
13 years 2 months ago #74512 by gypsygirl
Moving from IB to ESA support group was created by gypsygirl
I was first awarded IB in March 1995 and during that time my benefit has been non taxable. Whilst I am very happy to have been moved directly to the support group I have now been told that my ESA payment will be taxable. I have tried to research the various govt. websites and came across Part 10 Chapt 3&4 ITEPA which states that if I was in receipt of invalidity benefit before April 1995 and there has been no break in my claim and relates to same illness I could be regarded as an exception. I am not sure if this exception would apply to me. Can anyone help here please?

Regards

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13 years 2 months ago #74517 by Gordon
Replied by Gordon on topic Re:Moving from IB to ESA support group
gypsygirl wrote:

I was first awarded IB in March 1995 and during that time my benefit has been non taxable. Whilst I am very happy to have been moved directly to the support group I have now been told that my ESA payment will be taxable. I have tried to research the various govt. websites and came across Part 10 Chapt 3&4 ITEPA which states that if I was in receipt of invalidity benefit before April 1995 and there has been no break in my claim and relates to same illness I could be regarded as an exception. I am not sure if this exception would apply to me. Can anyone help here please?

Regards

I'm sorry but ESA(CB) is and always has been liable to tax.

The ESA Transitional Regulations that enable the transfer of IB claimants to ESA do not include any clauses to continue any tax exemption, and the legislation you reference is not relevant to this situation.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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  • bro58
13 years 2 months ago - 13 years 2 months ago #74519 by bro58
Replied by bro58 on topic Re:Moving from IB to ESA support group
gypsygirl wrote:

I was first awarded IB in March 1995 and during that time my benefit has been non taxable. Whilst I am very happy to have been moved directly to the support group I have now been told that my ESA payment will be taxable. I have tried to research the various govt. websites and came across Part 10 Chapt 3&4 ITEPA which states that if I was in receipt of invalidity benefit before April 1995 and there has been no break in my claim and relates to same illness I could be regarded as an exception. I am not sure if this exception would apply to me. Can anyone help here please?

Regards


Hi GG,

Yes you would have been "Tax Exempt" for the reasons that you state, when you were in receipt of IB.

Unfortunately this "Tax Exemption" is not carried over to ESA, there are no such "Tax Exemptions" at all with ESA.


cheers

bro58

Mod Edit : Replied same time as Gordon.
Last edit: 13 years 2 months ago by bro58.

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  • gypsygirl
  • Topic Author
13 years 2 months ago #74556 by gypsygirl
Replied by gypsygirl on topic Re:Moving from IB to ESA support group
Thanks for the replies Now I know!

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