Whilst there are a large number of state benefits available, it is not clear which of these benefits are taxable and which are tax-free.

HMRC’s guidance provides the following list of the most common state benefits that are taxable i.e., Income Tax is potentially payable, subject to the usual allowances and reliefs:

The most common state benefits you do not have to pay Income Tax on are:

Source:HM Revenue & Customs| 12-09-2022