Income and Corporation Taxes Act 1988

[F1 347B Qualifying maintenance payments. U.K.

(1) [F2 Subject to subsection (1A) below] in this section “qualifying maintenance payment” means a periodical payment which—

(a) is made under an order made by a court [F3 in a member State]], or under a written agreement the [F4 law applicable to] which is the law of [F3 a member State or of a part of a member State],

[F5 (b) is made —

(i) by one of the parties to a marriage or civil partnership (including a marriage or civil partnership which has been dissolved or annulled) to or for the benefit of the other party and for the maintenance of the other party, or

(ii) by one parent of a child to the child's other parent for the maintenance of the child by the other parent or by one person to another for the maintenance by the other of a relevant child of theirs,]

(c) is due at a time when—

[F6 (i) in a case falling within paragraph (b)(i) above, the two parties are not a married couple, or civil partners of each other, living together and the party to whom or for whose benefit the payment is made has not subsequently entered into a marriage or civil partnership, and

(ii) in a case falling within paragraph (b)(ii) above, the person making the payment is not living together with the person to whom the payment is made, and]

(d) is not a payment in respect of which relief from tax is available to the person making the payment under any provision of the Income Tax Acts other than this section.

[F7 (1A) A periodical payment is not a qualifying maintenance payment unless—

[F8 (a) in a case falling within subsection (1)(b)(i) above, either of the parties to the marriage or civil partnership was born before 6th April 1935, or

(b) in a case falling within subsection (1)(b)(ii) above, either the person by whom the payment is made, or the person to whom it is made, was born before that date.]]

(2) F9 . . . Subject to [F10 subsection (3)] below, a person making a claim for the purpose shall be entitled, [F11 for a year of assessment to an income tax reduction calculated by reference to] an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.

(3) [F12 The amount by reference to which any income tax reduction is to be calculated under this section shall be limited to] the amount [F13 specified in [F14 section 257A(5A)] for the year].

(4) F15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16 (5A) Where any person is entitled under this section for any year of assessment to an income tax reduction calculated by reference to the amount determined in accordance with [F17 subsections (2) and (3)] above (“the relevant amount”), the amount of that person’s liability for that year to income tax on his total income shall be the amount to which he would have been liable apart from this section less whichever is the smaller of—

(a) the amount equal to [F18 10 per cent.] of the relevant amount; and

(b) the amount which reduces his liability to nil;

F19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5B) In determining for the purposes of subsection (5A) above the amount of income tax to which a person would be liable apart from any income tax reduction under this section, no account shall be taken of—

(a) any income tax reduction under Chapter I of Part VII;

(b) any relief by way of a reduction of liability to tax which is given in accordance with any arrangements having effect by virtue of section 788 or by way of a credit under section 790(1); or

(c) any tax at the basic rate on so much of that person’s income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment.]

(6) The reference in subsection (1)above to a married couple living together shall be construed in accordance with section 282(1),but section 282(2)shall not apply for the purposes of this sectionF20 .

(7) In this section—

• [F21 “child” means a person under 21 years of age;]

• F22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “periodical payment” does not include an instalment of a lump sum;

• [F23 “relevant child”, in relation to any two persons, means a child who (not being a child who has been boarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family.]

[F24 (8) In [F25 subsection (1)(a)] above, the reference to an order made by a court in the United Kingdom includes a reference to a maintenance assessment.

(9) Where—

(a) any periodical payment is made under a maintenance assessment by [F26 any person],

(b) [F27 another person] is, for the purposes of the Child Support Act 1991 or (as the case may be) the Child Support (Northern Ireland) Order 1991, a parent of the child or children with respect to whom the assessment has effect,

(c) the assessment was not made under section 7 of the Child Support Act 1991 (right of child in Scotland to apply for maintenance assessment), and

(d) any of the conditions mentioned in subsection (10) below is satisfied,

this section shall have effect as if the payment had been made to the other [F28 person] for the maintenance by that other [F28 person] of that child or (as the case may be) those children.

(10) The conditions are that—

(a) the payment is made to the Secretary of State in accordance with regulations made under section 29 of the Child Support Act 1991, by virtue of subsection (3)(a)(ii) of that section;

(b) the payment is made to the Department of Health and Social Services for Northern Ireland in accordance with regulations made under Article 29 of the Child Support (Northern Ireland) Order 1991, by virtue of paragraph (3)(a)(ii) of that Article;

(c) the payment is retained by the Secretary of State in accordance with regulations made under section 41 of that Act;

(d) the payment is retained by the Department of Health and Social Services for Northern Ireland in accordance with regulations made under Article 38 of that Order.

(11) In this section “maintenance assessment” means [F29 a maintenance assessment made under ] the Child Support Act 1991 or the Child Support (Northern Ireland) Order 1991.

(12) Where any periodical payment is made to the Secretary of State or to the Department of Health and Social Services for Northern Ireland—

(a) by [F30 any person ], and

[F31 (b) under an order—

(i) made under section 106 of the Social Security Administration Act 1992 or section 101 of the Social Security Administration (Northern Ireland) Act 1992 (recovery of expenditure on benefit from person liable for maintenance) in respect of income support claimed by [F32 any other person]; or

(ii) made by virtue of section 23 of the Jobseekers Act 1995 (recovery of sums in respect of maintenance), or any corresponding enactment in Northern Ireland, in respect of an income-based jobseeker’s allowance claimed by [F32 any other person],]

this section shall have effect as if the payment had been made to [F33 that other person] to or for the benefit, and for the maintenance, of [F33 that other person] or (as the case may be) to [F33 that other person] for the maintenance of the child or children concerned.]

[F34 (13) In subsection (12) above, “income-based jobseeker’s allowance” has the same meaning as in the Jobseekers Act 1995 or, for Northern Ireland, the same meaning as in any corresponding enactment in Northern Ireland.]

Textual Amendments

F1 Ss. 347A, 347B inserted by Finance Act 1988 (c. 39), s. 36(1)(3)-(5)

F2 Words in s. 347B(1) inserted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 16), s. 36(1)

F3 Words in s. 347B(1)(a) substituted (16.7.1992 with effect for the year 1992-93 and subsequent years of assessment) by Finance (No. 2) Act 1992 (c. 48), s. 61.

F4 Words in s. 347B(1)(a) substituted (1.4.1991) by Contracts (Applicable Law) Act 1990 (c. 36, SIF 30), s. 5, Sch. 4 para. 6; S.I. 1991/707, art. 2

F5 S. 347B(1)(b) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(2)(a)

F6 S. 347B(1)(c)(i)(ii) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(2)(b)

F7 S. 347B(1A) inserted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 16), s. 36(2)

F8 S. 347B(1A)(a)(b) substituted for words in s. 347B(1A) (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(3)

F9 Words in s. 347B(2) repealed (with effect in accordance with s. 79(1), Sch. 26 Pt. 5(1) Note of the repealing Act) by Finance Act 1994 (c. 9), s. 79(3)(a), Sch. 26 Pt. 5(1)

F10 Words in s. 347B(2) substituted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 16), s. 36(3)

F11 Words in s. 347B(2) substituted (with effect in accordance with s. 79(1) of the amending Act) by Finance Act 1994 (c. 9), s. 79(3)(b)

F12 Words in s. 347B(3) substituted (with effect in accordance with s. 79(1) of the amending Act) by Finance Act 1994 (c. 9), s. 79(4)

F13 1988(F) s.35and Sch.3 para.13for 1990-91and subsequent years. Previously

“of the difference between the higher (married person's) relief and the lower (single person's) relief under subsection (1) of section 257 as it applies for the year to a person not falling within subsection (2) or (3) of that section”.

F14 Words in s. 347B(3) substituted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 36), s. 36(4)

F15 S. 347B(4)(5) repealed (with effect in accordance with Sch. 20 Pt. 3(6) Note of the repealing Act) by Finance Act 1999 (c. 16), Sch. 20 Pt. 3(6)

F16 S. 347B(5A)(5B) inserted (with effect in accordance with s. 79(1) of the amending Act) by Finance Act 1994 (c. 9), s. 79(6)

F17 Words in s. 347B(5A) substituted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 16), s. 36(5)

F18 Words in s. 347B(5A)(a) substituted (with effect in accordance with s. 27(1 of the amending Act) by Finance Act 1998 (c. 36), s. 27(1)(b)

F19 Words in s. 347B(5A) repealed (with effect in accordance with Sch. 27 Pt. 3(1) Note of the repealing Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. 3(1)

F20 Repealed by 1988(F) s.148and Sch.14 Part VIIIfor 1990-91and subsequent years.

F21 S. 347B(7); definition of "child" inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(4)(b)

F22 S. 347B(7); definition of "child of the family" omitted (with effect in accordance with reg. 1(5) of the repealing S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(4)(a)

F23 S. 347B(7); definition of "relevant child" inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(4)(c)

F24 S. 347B(8)-(12) inserted (6.4.1993) by Finance (No. 2) Act 1992 (c. 48), s. 62(1); S.I. 1992/2642, art.2.

F25 Words in s. 347B(8) substituted (with effect in accordance with s. 36(8) of the amending Act) by Finance Act 1999 (c. 16), s. 36(6)

F26 Words in s. 347B(9)(a) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(5)(a)

F27 Words in s. 347B(9)(b) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(5)(b)

F28 Words in s. 347B(9) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(5)(c)

F29 Words in s. 347B(11) repealed (N.I.) (3.3.2003 for specified purposes) by Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4), ss. 67, 68(1)(2), Sch. 9 Pt. 1; S.R. 2003/53, art. 3, Sch.

F30 Words in s. 347B(12)(a) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(6)(a)

F31 S. 347B(12)(b) substituted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 15(2); SI 1996/2208, art. 2(b)

F32 Words in s. 347B(12)(b)(i)(ii) substituted (5.12.2005 with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(6)(b)

F33 Words in s. 347B(12) substituted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 67(6)(c)

F34 S. 347B(13) inserted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 15(3); SI 1996/2208, art. 2(b)

Modifications etc. (not altering text)

C1 S. 347B modified (with effect in accordance with s. 79(1) of the amending Act) by Finance Act 1994 (c. 9), s. 79(3)-(6)