Income and Corporation Taxes Act 1988

Changes over time for: Section 617

Version Superseded: 01/10/1995

Status:

Point in time view as at 01/07/1992. This version of this provision has been superseded.

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Income and Corporation Taxes Act 1988, Section 617 is up to date with all changes known to be in force on or before 25 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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617 Social security benefits and contributions.U.K.

(1)Payments of benefit under [F1Parts II to IV of the Social Security Contributions and Benefits Act 1992], [F2or Parts II to IV of the Social Security Contributions and Benefits (Northern Ireland) Act 1992], except—

(a)sickness benefit, invalidity benefit, attendance allowance, [F3 mobility allowance,] [F4disability living allowance,]severe disablement allowance, maternity allowance, widow’s payments, child’s special allowance and guardian’s allowance; and

(b)so much of any benefit as is attributable to an increase in respect of a child,

shall be charged to income tax under Schedule E.

(2)M1The following payments shall not be treated as income for any purpose of the Income Tax Acts—

(a)payments of income support, family credit [F5, disability working allowance]or housing benefit under [F6Part VII of the Social Security Contributions and Benefits Act 1992] or [F7Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] other than payments of income support which are taxable by virtue of section 151;

[F8(aa)payments by way of an allowance under [F9paragraph 18 of Schedule 7 to the Social Security Contributions and Benefits Act 1992] and [F10paragraph 18 of Schedule 7 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992];]

(b)payments of child benefit; and

(c)payments excepted by subsection (1) above from the charge to tax imposed by that subsection.

(3)M2Subject to subsection (4) and (5) below, no relief or deduction shall be given or allowed in respect of any contribution paid by any person under—

(a)Part I of the Social Security [F11Contributions and Benefits Act 1992], or

(b)Part I of the Social Security [F12Contributions and Benefits (Northern Ireland) Act 1992].

(4)Subsection (3) above shall not apply to any secondary Class I contributions within the meaning of [F13Part I of the Social Security Contributions and Benefits Act 1992] or [F14Part I of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] which is allowable as a deduction in computing profits or gains, in computing expenses of management under section 75 or under that section as applied by section 76 or in computing expenses of management or supervision under section 121.

(5)M3An individual making a claim in that behalf shall be entitled, in computing his total income for any year of assessment, to deduct one-half of any amount (as finally settled) which is determined under subsection [F15(3) of section 15 of the Social Security Contributions and Benefits Act 1992 or][F16subsection (3) of section 15 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992] and which he is liable to pay in respect of that year by way of Class 4 contributions under either of those sections.

(6)M4Until such day as may be appointed by the Secretary of State by order made by statutory instrument, subsection (1)(a) above shall have effect with the omission of the words “widow’s payments”.

Textual Amendments

F1Words in s. 617(1) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(2)

F2Words in s. 617(1) substituted (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 4, 7(2), Sch. 2 para. 33(2)

F3Words in s. 617(1)(a) repealed (N.I.) (6.4.1992) by S.I. 1991/2874, art. 5; S.R. 1992/94, art. 2

F4Words in s. 617(1)(a) inserted (3.2.1992 for certain purposes and 6.4.1992 so far as not in force) by Disablity Living Allowance and Disability Working Allowance Act 1991 (c. 21, SIF 113:1), s. 4(2), Sch. 2 para. 18; S.I. 1991/2167, art. 2(c)(f)

F5Words in s. 617(2)(a) inserted (10.3.1992 for certain purposes and 6.4.1992 so far as not in force) by Disability Living Allowance and Disability Working Allowance Act 1991 (c. 21, SIF 113:1), s. 7(2), Sch. 3 para. 11; S.I. 1991/2617, art. 2(e)(f)

F6Words in s. 617(2)(a) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(3)(a)

F7Words in s. 617(2)(a) substituted (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 4, 7(2), Sch. 2 para. 33(3)(a)

F8S. 617(2)(aa) inserted by virtue of Social Security Act 1988 (c. 7), s. 16, Sch. 4 para. 1 and S.I. 1988 No. 520 (not reproduced).

F9Words in s. 617(2)(aa) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(3)(b)

F10Words in s. 617(2)(aa) substituted (1.7.1992) by Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), ss. 4, 7(2), Sch. 2 para. 33(3)(b)

F11Words in s. 617(3)(a) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 93(4)