My mother receives Attendance Allowance. It is not a taxable benefit for her.
I have been her unpaid carer for some time, but she now wants to pass some of her Attendance Allowance money on to me. This is because my husband is currently out of work and she hoped that by giving me some money I would not need to increase the hours of my part time job to help cover his loss of salary. Nice thought.
Would this money count as part of my taxable income?
What has triggered her concern is that, no sooner had she decided she wanted to give me the money than she heard an item on the radio about pension credit. Apparently, if you apply for pension credit you must provide the National Insurance number of anyone you pass on your Attendance Allowance to. This made her think that HMRC would want to tax me on the money she gave me.
I have looked at various bits of information about the allowance, but this is one question that doesn't seem to be addressed anywhere.
If you know the answer and can give me the source I would be very grateful - and so would she.