The Tax Credits (Definition and Calculation of Income) Regulations 2002

PART 1 U.K. General Provisions

Citation, commencement and effect U.K.

1.  These Regulations may be cited as the Tax Credits (Definition and Calculation of Income) Regulations 2002 and shall come into force—

(a) for the purpose of enabling claims to be made, on 1st August 2002;

(b) for the purpose of enabling awards to be made, on 1st January 2003; and

(c) for all other purposes, on 6th April 2003;

and shall have effect for the tax year beginning on 6th April 2003 and subsequent tax years.

Interpretation U.K.

2.—(1) In these Regulations, unless the context otherwise requires—

• “the Act” means the Tax Credits Act 2002;

• “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 M1 ; and

• “the Employment Act” means the Employment and Training Act 1973 M2 .

(2) In these Regulations except where the context otherwise requires—

• “the 1992 Fund” means moneys made available from time to time by the Secretary of State for Social Security for the benefit of persons eligible for payment in accordance with the provisions of a scheme established by him on 24th April 1992 as respects England and Wales and Northern Ireland and on 10th April 1992 as respects Scotland;

• “the Board” means the Commissioners of Inland Revenue;

• “child” has the meaning given in the Child Tax Credit Regulations 2002 M3 ;

• “claim” means a claim for child tax credit or working tax credit and “joint claim” and “single claim” shall be construed in accordance with section 4(6) of the Act and “claimant” shall be construed accordingly;

• [F1 “earnings” shall be construed in accordance with section 62 of the ITEPA;]

• “the Eileen Trust” means the charitable trust of that name established on 29th March 1993 out of funds provided by the Secretary of State for Social Security for the benefit of persons eligible in accordance with its provisions;

• F2 ...

• “employment zone” means an area within Great Britain designated by the Employment Zones Regulations 2000 M4 for the purposes of section 60 of the Welfare Reform and Pensions Act 1999 M5 ;

• “employment zone programme” means a programme which is—

  (a)

  established for one or more employment zones, and

  (b)

  designed to assist claimants for a jobseeker’s allowance to obtain sustainable employment;

• “family” means—

  (c)

  in the case of a joint claim, the married or unmarried couple by whom the claim is made and any child or qualifying young person for whom at least one of them is responsible, in accordance with regulation 3 of the Child Tax Credit Regulations 2002 M6 ; and

  (d)

  in the case of a single claim, the claimant and any child or qualifying young person for whom he is responsible in accordance with regulation 3 of the Child Tax Credit Regulations 2002;

• “the Independent Living Fund” means the charitable trust of that name established out of funds provided by the Secretary of State for Social Services for the purpose of providing financial assistance to those persons incapacitated by or otherwise suffering from very severe disablement who are in need of such assistance to enable them to live independently;

• “the Independent Living Funds” means the Independent Living Fund, the Independent Living (Extension) Fund and the Independent Living (1993) Fund;

• “the Independent Living (Extension) Fund” means the trust of that name established on 25th February 1993 by the Secretary of State for Social Security and Robin Glover Wendt and John Fletcher Shepherd;

• “the Independent Living (1993) Fund” means the trust of that name established on 25th February 1993 by the Secretary of State for Social Security and Robin Glover Wendt and John Fletcher Shepherd;

• [F3 “ITEPA” means the Income Tax (Earnings and Pensions) Act 2003;]

• “the Macfarlane (Special Payments) Trust” means the trust of that name established on 29th January 1990 partly out of funds provided by the Secretary of State for Health for the benefit of certain persons suffering from haemophilia;

• “the Macfarlane (Special Payments) (No. 2) Trust” means the trust of that name established on 3rd May 1991 partly out of funds provided by the Secretary of State for Health for the benefit of certain persons suffering from haemophilia and other beneficiaries;

• “the Macfarlane Trust” means the charitable trust established partly out of funds provided by the Secretary of State for Health to the Haemophilia Society for the relief of poverty or distress among those suffering from haemophilia;

• “the Macfarlane Trusts” means the Macfarlane Trust, the Macfarlane (Special Payments) Trust and the Macfarlane (Special Payments) (No. 2) Trust;

• “pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 M7 ;

• “pension fund holder”, in relation to a personal pension scheme or a retirement annuity contract, means the trustees, managers or scheme administrators of the scheme or contract;

• “personal pension scheme”—

  (e)

  has the meaning given by section 1 of the Pensions Schemes Act 1993 M8 or section 1 of the Pension Schemes (Northern Ireland) Act 1993 M9 ; and

  (f)

  includes a scheme approved by the Board under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 M10 ;

• “qualifying young person” has the meaning given in the Child Tax Credit Regulations 2002;

• “retirement annuity contract” means a contract or trust scheme approved by the Board under or by virtue of any provision of Chapter 3 of Part 14 of the Taxes Act;

• “retirement benefits scheme” has the meaning given in section 611 of the Taxes Act M11 ;

• “Schedule D” means the Schedule set out in section 18 of the Taxes Act M12 ;

• F4 ...

• “the Service Pensions Order” means the Naval, Military and Air Forces, etc. (Disablement and Death) Service Pensions Order 1983 M13 ;

• “tax year” means a period beginning with the 6th April in one year and ending with 5th April in the next;

• “the Taxes Act” means the Income and Corporation Taxes Act 1988; M14

• “voluntary organisation” means a body, other than a public or local authority, the activities of which are carried on otherwise than for profit;

• “war pension” has the meaning given in section 25(4) of the Social Security Act 1989 M15 .

(3) For the purposes of these Regulations, whether a person is responsible for a child or a qualifying young person is determined in accordance with regulation 3 of the Child Tax Credit Regulations 2002.

(4) In these Regulations—

(a) a reference to a claimant’s partner is a reference to a claimant’s spouse or a person with whom the claimant lives as a spouse; and

(b) a reference to a claimant’s former partner is a reference to a claimant’s former spouse or a person with whom the claimant has lived as a spouse; and

(c) a reference in these Regulations to an Extra Statutory Concession is a reference to that Concession as published by the Inland Revenue on 1st July 2002 M16 .

Textual Amendments

F1 Words in reg. 2(2) inserted (6.4.2003) by The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2003 (S.I. 2003/732), regs. 1, 4(a)

F2 Words in reg. 2(2) omitted (6.4.2003) by virtue of The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2003 (S.I. 2003/732), regs. 1, 4(b)

F3 Words in reg. 2(2) inserted (6.4.2003) by The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2003 (S.I. 2003/732), regs. 1, 4(c)

F4 Words in reg. 2(2) omitted (6.4.2003) by virtue of The Tax Credits (Definition and Calculation of Income) (Amendment) Regulations 2003 (S.I. 2003/732), regs. 1, 4(d)

Marginal Citations

M1 1992 c.4.

M2 1973 c.50.

M3 S.I. 2002/2007.

M4 S.I. 2000/721.

M5 1999 c.30.

M6 S.I. 2002/2007.

M7 1995 c.26.

M8 1993 c.48.

M9 1993 c.49.

M10 1988 c.1.

M11 Section 611 has been amended by paragraph 9 of Schedule 10 to the Finance Act 1999 and paragraphs 1 and 4 of Schedule 13, and Part II(4) of Schedule 40 to the Finance Act 2000.

M12 Relevant amendments to section 18 are those made by paragraph 2 of Schedule 6 to the Finance Act 1995 (c.4) and paragraphs 4 and 32 of Schedule 7 to the Finance Act 1996.

M13 S.I. 1983/883.

M14 1988 c.1.

M15 1989 c.24.

M16 Copies of Inland Revenue Extra-Statutory Concessions may be obtained from the Inland Revenue Leaflets and booklets Orderline, PO Box 37, Saint Austell, Cornwall, PL25 5YN. They are also available on the Inland Revenue's website (http://www.inlandrevenue.gov.uk).