---
title: "The Disability Premium Compensation Scheme (Income Tax Exemption) Regulations 2025"
id: fb618577-0a1a-41ea-934e-bd3bda86bc47
authority: uk
place: "United Kingdom"
applies_also_from: []
kind: regulation
in_force: true
publisher_url: https://www.legislation.gov.uk/uksi/2025/861
attribution: "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
solon_url: https://solon.orangecat.ch/law/fb618577-0a1a-41ea-934e-bd3bda86bc47
language: en
in_force_from: 2025-08-08
date_basis: publisher
status: consolidated
source_url: https://www.legislation.gov.uk/uksi/2025/861/data.xml
read_on: 2026-11-10
sha256: 6a644a58786bf18549da992d2d9ca075e7ee5d586457f2497e07548dd5c37a42
provisions: 3
---

# The Disability Premium Compensation Scheme (Income Tax Exemption) Regulations 2025

## Title and introductory text {#prelims}

2025 No. 861
INCOME TAX
The Disability Premium Compensation Scheme (Income Tax Exemption) Regulations 2025
Made
14th July 2025
Laid before the House of Commons
15th July 2025
Coming into force
8th August 2025
The Treasury make the following Regulations in exercise of the powers conferred by paragraphs 2(5) and (6) and 3(5) of Schedule 15 to the Finance Act 2020.

## 1 Citation and commencement {#regulation-1}

These Regulations may be cited as the Disability Premium Compensation Scheme (Income Tax Exemption) Regulations 2025 and come into force on 8th August 2025.

## 2 Exemption from income tax for disability premium compensation scheme payments {#regulation-2}

(1) Payments made by the Department for Work and Pensions under the DWP disability premium compensation scheme and payments made by the Department for Communities in Northern Ireland under the corresponding scheme for Northern Ireland are qualifying payments for the purposes of paragraph 3 of Schedule 15 to the Finance Act 2020.
(2) This regulation applies to payments received on or after 18th December 2024.
(3) In this regulation “DWP disability premium compensation scheme” means the scheme created by the Department for Work and Pensions to compensate people who—
(a) have been awarded universal credit, where the first day of the first assessment period in relation to that award fell before 14th February 2024,
(b) have been awarded the universal credit transitional severe disability premium element, and
(c) before they were awarded universal credit, were entitled to an award of one or more relevant legacy benefits that included a disability premium or element as specified in paragraph 4 of Schedule 3 to the Universal Credit (Transitional Provisions) Regulations 2014.