IPTM6100 - Sickness disability and unemployment insurance: introduction

As set out at IPTM6010, payments received from sickness disability and unemployment insurance will usually form part of the recipient’s taxable income, unless specific provisions exempt them from tax.

If certain conditions are met ITTOIA05/S735 exempts payments from policies that would otherwise be taxable. The following paragraphs describe the types of policies that exist and the conditions that must be met for the exemption to apply to payments received from them.