Attendance Allowance is tax-free.
What tax-free means
The full amount is kept, whether the payment is £76.70 a week or £114.60 a week. Nothing is deducted for tax, and there's nothing to declare on a tax return.
It isn't counted as taxable income, so it doesn't affect a tax code or push anyone into a higher tax band.
This applies to both rates, and to every payment, for as long as the award lasts.
The two rates
Does it affect income or means-tested benefits?
What someone earns or has in savings does not affect Attendance Allowance.
Being tax-free is a separate question from being means-tested, though the two often get confused – see our guide on whether it's means-tested for the full picture.
What to do next
If someone is over State Pension age and needs help or watching over because of an illness or disability, ring 0800 731 0122 and ask for the claim form.
You can apply to DWP directly, and Citizens Advice can help at no cost.
Questions people ask
Do I need to declare Attendance Allowance on a tax return?
No. It's tax-free, so there's nothing to declare and nothing deducted, whichever rate is paid.
Does Attendance Allowance affect a tax code?
No. Because it's tax-free, it isn't counted as income, so it has no effect on a tax code or tax band.
Is Attendance Allowance both tax-free and not means-tested?
Yes. What someone earns or has in savings does not affect Attendance Allowance. The two are separate rules, but both mean more of the money stays with the person it's paid to.
Sources
Last checked 30 September 2026 against the sources below.