How state benefits are affected

1 minute read

This is not intended to be a comprehensive list or guide and gives the basics only. We would always recommend you speak to the specialist agency in these areas.

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: Yes
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes - household income and savings worth £6,000 or more may affect how much you can get.
Capital means tested: Yes - household income and savings worth £6,000 or more may affect how much you can get.
Pension in payment: Yes - excess over £85 allowance will reduce by half for each £1 over.
Pension not in payment: No
Bond investment: Yes - household income and savings worth £6,000 or more may affect how much you can get.
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes - household income and savings worth £6,000 or more may affect how much you can get.
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: Yes - household income and savings worth £6,000 or more may affect how much you can get.

Taxable benefit: Yes
Income means tested: No
Capital means tested: No
Pension in payment: Yes - excess over £85 allowance will reduce by half for each £1 over.
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: Yes
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: Yes - is not counted as income for tax credits.
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes -if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: Yes
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: Yes
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes - Benefit charge for income over £50,000.
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes - Benefit charge for income over £50,000.
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: No

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Taxable benefit: No
Income means tested: No
Capital means tested: No
Pension in payment: No
Pension not in payment: No
Bond investment: No
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): No
CIA Capital Gains: No
CIA Interest and Dividends (includes both accumulated and distributed): No
ISA: No

Taxable benefit: No
Income means tested: Yes
Capital means tested: Yes
Pension in payment: Yes
Pension not in payment: Yes - if pension credit age. No - if younger.
Bond investment: Yes
Bond withdrawals (withdrawal of capital and/or triggering a chargeable gain): Yes
CIA Capital Gains: Yes
CIA Interest and Dividends (includes both accumulated and distributed): Yes
ISA: Yes

Means tested capital include; cash, stocks and shares (including ISAs), property, premium bonds and National Savings. Potentially disregarded for these tests would be life assurance bonds.

Note: some benefit payments may affect other means tested benefits.

Reducing CGT via a relief at source pension contribution

Demonstrate the value of advice by showing how a relief at source pension contributions can achieve low net tax positions on capital gains.

Published 06 April 2024

Statutory residency - split year

11 minute read

Under the UK statutory residency test, you are either UK resident or non-UK resident for a full tax year and at all times for that tax year. If, however, during the year you either leave the UK to live or work abroad, or come from abroad to live or work in the UK, you may be eligible for the tax year to be split into two parts.

Published 05 August 2014

How state benefits are affected

Bereavement support payment

Carers allowance

Income related employment and support allowance (ESA)

Contribution related employment and support allowance (ESA)

Contribution based jobseekers allowance (6 months only)

Income related jobseekers allowance

State pension

Widowed parents allowance

Attendance allowance

Child benefit

Child tax credit

Disability living allowance

Over 75 free TV licence

Housing benefit

Income support

Care home fees

Maternity allowance

Pension credit

Personal independence payment

Universal credit

Winter fuel payments

Working tax credit

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Statutory residency - split year

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State benefits and allowances

Bereavement support payment

Carers allowance

Income related employment and support allowance (ESA)

Contribution related employment and support allowance (ESA)

Contribution based jobseekers allowance (6 months only)

Income related jobseekers allowance

State pension

Widowed parents allowance

Attendance allowance

Child benefit

Child tax credit

Disability living allowance

Over 75 free TV licence

Housing benefit

Income support

Care home fees

Maternity allowance

Pension credit

Personal independence payment

Universal credit

Winter fuel payments

Working tax credit

Additional Technical Support

Related articles

Reducing CGT via a relief at source pension contribution

Statutory residency - split year

Registered office