The Social Security (Scottish Rate of Income Tax etc.) (Amendment) Regulations 2016

Amendments to the Income Support (General) Regulations 1987

2.—(1) The Income Support (General) Regulations 1987(1) are amended as follows.

(2) In regulation 2(1) (interpretation) after the definition of “remunerative work” insert—

““Scottish basic rate” means the rate of income tax of that name calculated in accordance with section 6A of the Income Tax Act 2007(2);

“Scottish taxpayer” has the same meaning as in Chapter 2 of Part 4A of the Scotland Act 1998(3);”.

(3) In regulation 39(1) (deduction of tax and contributions for self-employed earners)—

(a) after “basic rate” in the first place it appears insert “, or in the case of a Scottish taxpayer, the Scottish basic rate,”;

(b) for “personal allowance to which the claimant is entitled under section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowance) as is” substitute “personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007(4) as are”;

(c) after “basic rate” in the second place it appears insert “, or the Scottish basic rate,”; and

(d) for “personal allowance” in the second place it appears substitute “personal reliefs”.

(4) In regulation 39D (deduction in respect of tax for participants in the self-employment route)—

(a) for paragraph (1)(b) substitute—

“(b) the personal reliefs applicable to the person receiving assistance under the self-employment route under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 are allowable against that income;”;

(b) in paragraph (1)(c)—

(i) for “relief” substitute “reliefs”; and

(ii) after “basic rate” insert “, or in the case of a Scottish taxpayer, the Scottish basic rate,”; and

(c) in paragraph (2)—

(i) after “basic rate” insert “, or the Scottish basic rate,”; and

(ii) for “personal allowance” substitute “personal reliefs”.

(5) In regulation 42(8)(a) (notional income)—

(a) after “basic rate” in the first place it appears insert “, or in the case of a Scottish taxpayer, the Scottish basic rate,”;

(b) for “personal allowance to which the claimant is entitled under section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowance) as is” substitute “personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are”;

(c) after “basic rate” in the second place it appears insert “, or the Scottish basic rate,”; and

(d) for “personal allowance” in the second place it appears substitute “personal reliefs”.

(1)

S.I. 1987/1967; relevant amending instruments are: S.I. 1992/2155, 1994/2139, 1998/1174, 2007/1749, 2007/2618 and 2009/583.

(2)

2007 c. 3. Section 6A was inserted by paragraph 3 of Schedule 38 to the Finance Act 2014 (c. 26).

(3)

1998 c. 46. Part 4A, sections 80A and 80B, were inserted by section 23(2) of the Scotland Act 2012 (c. 11) and sections 80C to 80H were inserted by section 25(3) of that Act.

(4)

2007 c. 3. Chapter 3A was inserted by section 11(2) of the Finance Act 2014 (c. 26).