Income Tax (Trading and Other Income) Act 2005 section 775A

Government bonus for savings account or other investment plan

Section 775A confirms that government bonus payments made under the Savings (Government Contributions) Act 2017 are exempt from income tax.

  • Government bonuses paid under the Savings (Government Contributions) Act 2017 are free from income tax
  • The exemption covers both direct payments of a government bonus and payments made in respect of such a bonus
  • The relevant bonuses are those provided under sections 1 and 2 of the 2017 Act, which relate to savings accounts and investment plans such as the Lifetime ISA
  • No income tax liability arises regardless of the amount of the bonus received

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