Date lodged: 5 March 2018
To ask the Scottish Government, further to the answer to question S5W-14497 by Jeane Freeman on 7 March 2018, whether people in receipt of the increase in care allowance will receive 100% of the benefit after tax.
Answered by: Jeane Freeman 23 March 2018
As a result, carers who pay income tax on their Carer’s Allowance will also have their Carer’s Allowance Supplement subject to tax.
As confirmed in our response to question S5W-14498 on 27 February 2018, Carer’s Allowance is a taxable benefit and therefore Carer’s Allowance Supplement will be taxable, as the legal definition of income for tax purposes remains reserved to the UK Government. The Scottish Government does not have the power to change this as set out in the Fiscal Framework.