Written question asked by Laurence Robertson (Conservative) on Tuesday, 7 September 2010, in the House of Commons. It was due for an answer on Thursday, 9 September 2010. It was answered by David Gauke (Conservative) on Wednesday, 15 September 2010 on behalf of the Treasury.

Bereavement Allowance

Question: To ask the Chancellor of the Exchequer if he will consider the merits of treating bereavement allowance as non-taxable income; and if he will make a statement.

Answer: Bereavement allowance is a contributory benefit, and it is appropriate that where a benefit replaces earnings, it is liable to tax.However, as with all other taxpayers, a person's tax liability depends upon their total taxable income from all sources and the income tax allowances to which they are entitled. The rates of income tax are set by Parliament, but someone whose only income is the basic bereavement allowance, for instance, will not pay tax because their personal tax allowance would cover this.All taxes and benefits are kept under review.

Secondary information