Policy paper
Income Tax charge on Winter Fuel Payments
This tax information and impact note is about paying an Income Tax charge equal to the full value of any Winter Fuel Payment (Pension Age Winter Heating payment in Scotland) you receive if your total income is over £35,000 a year.
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From 6 April 2025, HMRC will recover the Income Tax charge automatically, either through Self Assessment or PAYE tax code adjustments for most individuals.
People receiving certain means-tested benefits during the qualifying week will not pay the charge.
Pensioners can opt out of receiving the payment if they expect to exceed the income threshold.
Updates to this page
Published 26 November 2025