21
Lump sum back payments for Home Responsibilities Protection may incur tax liabilities for claimants.
Recommendation
We asked HMRC to confirm whether pensioners receiving lump sum back payments would be liable for a tax charge and whether it would take a sympathetic approach to handling any issues. HMRC confirmed that the tax charge could apply. It told us that “Generally, we will be as generous as we can be”, but that discussions were still ongoing within HMRC to understand the level of discretion that can be applied.45 Integrity of the National Insurance records
Government Response
A response document is linked to this report, dated 8 March 2024. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
Fourth Report - The Department for Work & Pensions Annual Report and Accounts 2022–23
06 Dec 2023
HC 290
Addressee Bodies
HM Treasury
Timeline
Recommendation age
2.8 yrs
Report published
06 Dec 2023