SCHEDULE 3 FINANCIAL ASSESSMENT

PART II parental contribution

6 Deductions
(1) For the purposes of determining the income of a student’s parent (and, accordingly, the parent’s gross income), in computing his taxable income as for the purposes of the Income Tax Acts or for the purposes of the income tax legislation of another Member State of the European Community any deductions which fall to be made or exemptions which are permitted –
(a) by way of personal reliefs provided for in Chapter I of Part VII of the Income and Corporation Taxes Act 1988, or where the parent’s income is computed as for the purposes of the income tax legislation of another Member State, any comparable personal reliefs;
1988 c. 1
(b) in respect of any payment made by the parent under covenant;
(c) in pursuance of any legislation or rule of law with the effect that payments which for the purposes of the law of the United Kingdom are treated as income are not treated as income; or
(d) without prejudice as aforesaid, of a kind mentioned in sub-paragraph (2), shall not be made or permitted.
(2) For the purpose of determining a parent’s residual income there shall be deducted from his gross income –
(a) in respect of any person, other than a spouse, child or eligible student, wholly or mainly financially dependent on the parent during the year for which the contribution falls to be ascertained, the amount by which £2,415 exceeds the income of that person in that year;
(b) the gross amount of any premium or sum relating to a pension (not being a premium payable under a policy of life insurance) in respect of which relief is given under section 266, 273, 619 or 639 of the Income and Corporation Taxes Act 1988, or where the parent’s income is computed as for the purposes of the income tax legislation of another Member State, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;
(c) where the parents ordinarily live together and one of them is incapacitated, or where the parent ordinarily lives with a person who is not the other parent of the eligible student, but that person is the husband or wife of the parent or lives with the parent as the parent’s husband or wife, and one of them is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,895, if the other parent or person described in this sub-paragraph is wholly or mainly financially dependent on the parent during the year for which the contribution falls to be ascertained;
(d) where the parent does not ordinarily live with the other parent or with another person as husband or wife or who is their husband or wife, and the parent is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,895;
(e) in respect of additional expenditure incurred by reason of the fact that the parent lives in a place where the cost of living is higher than that cost in the United Kingdom, such sum (if any) as the Department considers reasonable in all the circumstances;
(f) in the case of a parent who is an eligible student or who holds a statutory award, £975;
(g) any payments made to the parent of the student in pursuance of an order of a competent court for the benefit of a child who is not his child of whom he has custody or care or for whom he provides accommodation;
(h) where the parent’s income is computed as for the purposes of the income tax legislation of another Member State, sums equivalent to any amounts which would not be treated as taxable income if that legislation made provision equivalent to the Income Tax Acts.
(3) In any case where income is computed as for the purposes of the Income Tax Acts by virtue of paragraph 2(4), there shall be deducted from the parent’s gross income sums equivalent to the deduction mentioned in sub-paragraph (2)(b), provided that any sums so deducted shall not exceed the deduction that would be made if the whole of the parent’s income were in fact taxable income for the purposes of the Income Tax Acts.