keep The Income Tax (Exemption of Scottish Adult Disability Living Allowance) Regulations 2025
Amends ITEPA 2003 to add Scottish Adult Disability Living Allowance (paid under SS(S)A 2018, Sections 24 and 31) to Table B of section 677(1), exempting it from income tax. Takes effect 19th March 2025.
Removing this exemption would effectively taxedisability benefits received by vulnerable adults, reducing their already-modest support. Unlike regulations that restrict supply or create market distortions, a targeted tax exemption for needs-based disability assistance produces minimal economic distortion while ensuring support reaches those intended. The benefit is Scotland-specific and properly within devolved competence.