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Moving from IB to ESA support group
- gypsygirl
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Regards
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- Gordon
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I'm sorry but ESA(CB) is and always has been liable to tax.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
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
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.
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- gypsygirl
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