2007 No. 306

HOUSING; RATES; SOCIAL SECURITY

The Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2007

Made20th June 2007

Coming into operation16th July 2007

The Department for Social Development makes the following Regulations in exercise of the powers conferred by sections 22(5), 122(1)(a) and (d), 132(3) and (4)(a) and (b), 132A(3) and 171(1) and (3) to (5) of the Social Security Contributions and Benefits (Northern Ireland) Act 19921, sections 5(1)(h) and 165(1), (4) and (5) of the Social Security Administration (Northern Ireland) Act 19922 and Articles 14(1), (4)(a) and (b) and 36(2) of the Jobseekers (Northern Ireland) Order 19953, and now vested in it4.

Regulations 5 and 6 are made with the consent of the Department of Finance and Personnel5.

The Social Security Advisory Committee has agreed that proposals in respect of regulations 5 and 6 should not be referred to it6.

Citation, commencement and interpretation1.

(1)

These Regulations may be cited as the Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2007 and shall come into operation on 16th July 2007.

(2)

The Interpretation Act (Northern Ireland) 19547 shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Social Security (Credits) Regulations2.

(1)

The Social Security (Credits) Regulations (Northern Ireland) 19758 are amended in accordance with paragraphs (2) and (3).

(2)

In regulation 2(1) (interpretation) in the definition of “reckonable year”9, in paragraph (a), after “widowed mother’s allowance,” insert “widowed parent’s allowance, bereavement benefits,”.

F1(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendment of the Income Support (General) Regulations3.

(1)

The Income Support (General) Regulations (Northern Ireland) 198711 are amended in accordance with paragraphs (2) to (8).

(2)

In regulation 2(1) (interpretation)—

(a)

in the definition of “pension fund holder”12—

(i)

for “retirement annuity contract” substitute “an occupational pension scheme”, and

(ii)

omit “or contract”;

(b)

for the definition of “personal pension scheme”13 substitute—

““personal pension scheme” means—
(a)
a personal pension scheme as defined by section 1 of the Pension Schemes (Northern Ireland) Act 199314;
(b)
an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 198815 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 200416;
(c)
a personal pension scheme approved under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)

omit the definition of “retirement annuity contract”17; and

F2(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

In regulation 3820 (calculation of net profit of self-employed earners), in paragraphs (1)(b)(ii), (3)(c) and (9)(b) omit “a retirement annuity contract or”.

(4)

In regulation 39(1)21 (deduction of tax and contributions for self-employed earners)—

(a)

for “personal relief” in each place substitute “personal allowance”; and

(b)

for “sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970” substitute “section 257(1) of the Income and Corporation Taxes Act 1988”.

(5)

In regulation 39D22 (deduction in respect of tax for participants in the self-employment route)—

(a)

for paragraph (1)(b) substitute—

“(b)
the personal allowance applicable to the person receiving assistance under the self-employment route by virtue of section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowances) is allowable against that income.”; and

(b)

in paragraph (2) for “personal relief” substitute “personal allowance”.

(6)

In regulation 42 (notional income)—

(a)

in paragraph (2)(g)23 omit “, retirement annuity contract”;

(b)

in paragraph (2ZA)(a)24 omit “, a retirement annuity contract”;

(c)

for paragraph (2A)25 substitute—

“(2A)
This paragraph applies where a person aged not less than 60—
(a)
is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;
(b)
fails to purchase an annuity with the funds available in that scheme; and
(c)
either—
(i)
defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder;
(ii)
fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or
(iii)
income withdrawal is not available to him under that scheme.
(2AA)
Where paragraph (2A) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(d)

in paragraph (2B)26 for “to which either head (2A)(a)(i) or (ii)” substitute “where paragraph (2A)(c)(i) or (ii)”;

(e)

in paragraph (2C)27—

(i)

for “to which either head (2A)(a)(iii) or sub-paragraph (2A)(b)” substitute “where paragraph (2A)(c)(iii)”, and

(ii)

omit “, or retirement annuity contract”; and

(f)

in paragraph (8)(a)28—

(i)

for “personal relief” in each place substitute “personal allowance”, and

(ii)

for “sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970” substitute “section 257(1) of the Income and Corporation Taxes Act 1988”.

(7)

In regulation 51(2)(d)29 (notional capital) omit “or retirement annuity contract”.

(8)

In Schedule 10 (capital to be disregarded) in paragraph 23A30 omit “or retirement annuity contract”.

Amendment of the Jobseeker’s Allowance Regulations4.

(1)

The Jobseeker’s Allowance Regulations (Northern Ireland) 199631 are amended in accordance with paragraphs (2) to (5).

(2)

In regulation 1(2)32 (interpretation) in the definition of “war widower’s pension” insert at the end “or a pension or allowance for a widower or surviving civil partner granted under any scheme mentioned in section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.

(3)

In regulations 102(1) (deduction of tax and contributions for self-employed earners), 102D33 (deduction in respect of tax for participants in the self-employment route) and 105(15) (notional income)—

(a)

for “personal relief” or “personal reliefs” in each place substitute “personal allowance”; and

(b)

for “sections 257(1), 257A(1) and 259” in each place substitute “section 257(1)”.

(4)

In regulation 105 (notional income)—

(a)

for paragraph (3)34 substitute—

“(3)
This paragraph applies where a person aged not less than 60—
(a)
is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;
(b)
fails to purchase an annuity with the funds available in that scheme; and
(c)
either—
(i)
defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder;
(ii)
fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or
(iii)
income withdrawal is not available to him under that scheme.
(3A)
Where paragraph (3) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(b)

in paragraph (4)35 for “to which head (i) or (ii) of paragraph (3)(a)” substitute “where paragraph (3)(c)(i) or (ii)”;

(c)

in paragraph (5)36 for “to which head (iii) of paragraph (3)(a), or paragraph (3)(b)” substitute “ where paragraph (3)(c)(iii)”; and

(d)

in paragraph (17) in the definition of “pension fund holder” after “personal pension scheme” insert “or an occupational pension scheme”.

(5)

In Schedule 7 (capital to be disregarded) in paragraph 29 omit “or retirement annuity contract”.

Amendment of the Housing Benefit Regulations5.

(1)

The Housing Benefit Regulations (Northern Ireland) 200637 are amended in accordance with paragraphs (2) to (7).

(2)

In regulation 2(1) (interpretation)—

(a)

in the definition of “pension fund holder”—

(i)

for “retirement annuity contract” substitute “an occupational pension scheme”, and

(ii)

omit “or contract”;

(b)

for the definition of “personal pension scheme” substitute—

““personal pension scheme” means—
(a)
a personal pension scheme as defined by section 1 of the Pension Schemes (Northern Ireland) Act 1993;
(b)
an annuity contract or trust scheme approved under section 620 or 621 of the Taxes Act or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;
(c)
a personal pension scheme approved under Chapter IV of Part XIV of the Taxes Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”; and

(c)

omit the definition of “retirement annuity contract”.

(3)

In regulation 35(13) (calculation of net profit of self-employed earners) omit “a retirement annuity contract or”.

(4)

In regulation 39 (notional income)—

(a)

in paragraph (2)(c) omit “, retirement annuity contract”;

F3(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

In regulation 46(2)(d) (notional capital) omit “, retirement annuity contract”.

(6)

In regulation 82 (evidence and information)—

(a)

in paragraph (5) omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)

in paragraphs (5)(b) and (6) omit “or retirement annuity contract”; and

(c)

in paragraph (7)(b)(ii) omit “or a retirement annuity contract,”.

(7)

In Schedule 7 (capital to be disregarded) in paragraph 33 omit “or retirement annuity contract”.

Amendment of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations6.

(1)

The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 200638 are amended in accordance with paragraphs (2) to (6).

(2)

In regulation 2(1) (interpretation)—

(a)

in the definition of “pension fund holder”—

(i)

for “retirement annuity contract” substitute “an occupational pension scheme”, and

(ii)

omit “or contract”;

(b)

for the definition of “personal pension scheme” substitute—

““personal pension scheme” means—
(a)
a personal pension scheme as defined by section 1 of the Pension Schemes (Northern Ireland) Act 1993;
(b)
an annuity contract or trust scheme approved under section 620 or 621 of the Taxes Act or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;
(c)
a personal pension scheme approved under Chapter IV of Part XIV of the Taxes Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”; and

(c)

omit the definition of “retirement annuity contract”.

(3)

In regulation 37(12) (calculation of net profit of self-employed earners) omit “a retirement annuity contract or”.

(4)

In regulation 39 (notional income)—

(a)

for paragraph (4) substitute—

“(4)
This paragraph applies where a person aged not less than 60—
(a)
is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;
(b)
fails to purchase an annuity with the funds available in that scheme; and
(c)
either—
(i)
defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder;
(ii)
fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or
(iii)
income withdrawal is not available to him under that scheme.
(4A)
Where paragraph (4) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(b)

in paragraph (5) for “to which either paragraph (4)(a)(i) or (ii)” substitute “where paragraph (4)(c)(i) or (ii)”; and

(c)

in paragraph (6)—

(i)

for “to which either paragraph (4)(a)(iii) or (b)” substitute “where paragraph (4)(c)(iii)”, and

(ii)

omit “or retirement annuity contract”.

(5)

In regulation 63 (evidence and information)—

(a)

in paragraph (5) omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)

in paragraphs (5)(b) and (6) omit “or retirement annuity contract”; and

(c)

in paragraph (7)(b)(ii) omit “or a retirement annuity contract,”.

(6)

In Schedule 7 (capital to be disregarded) omit paragraph 25.

Revocations7.

The Regulations specified in column (1) of the Schedule are revoked to the extent specified in column (3).

Sealed with the Official Seal of the Department for Social Development on 20th June 2007

John O'Neill

A senior officer of the

Department for Social Development

The Department of Finance and Personnel consents to regulations 5 and 6.

Sealed with the Official Seal of the Department of Finance and Personnel on 20th June 2007

Adrian Arbuthnot

A senior officer of the

Department of Finance and Personnel

SCHEDULERevocations

Regulation 7

Column (1)	Column (2)	Column (3)
Citation	Reference	Extent of revocation
The Income-Related Benefits (Amendment No. 4) Regulations (Northern Ireland) 1993	S.R. 1993 No. 373	Regulation 4(2)(d)
The Income-Related Benefits and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations (Northern Ireland) 1995	S.R. 1995 No. 367	Regulation 2(2)(b) and (c)
The Social Security (Credits) (Amendment) Regulations (Northern Ireland) 2003	S.R. 2003 No. 151	Regulation 2(2)(a)
The Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2005	S.R. 2005 No. 424	Regulation 4(3)(c)

(This note is not part of the Regulations)

These Regulations amend—

the Income Support (General) Regulations (Northern Ireland) 1987;
the Jobseeker’s Allowance Regulations (Northern Ireland) 1996;
the Housing Benefit Regulations (Northern Ireland) 2006; and
the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006,

in consequence of changes to the tax system in relation to pensions schemes made by the Finance Act 2004.

The Regulations also—

amend the Social Security (Credits) Regulations (Northern Ireland) 1975 to insert a reference to “widowed parent’s allowance” and “bereavement benefits” in the definition of “reckonable year” and omits superfluous words in regulation 8B(2), (regulation 2);
replace obsolete references (concerning personal reliefs and war widowers' pensions) under repealed provisions of the Income and Corporation Taxes Acts 1970 and 1988, (regulations 3 and 4); and
make consequential revocations, (regulation 7).

In so far as these Regulations are required, for the purposes of regulations 5 and 6, to be referred to the Social Security Advisory Committee under section 149(2) of the Social Security Administration (Northern Ireland) Act 1992, after agreement by the Social Security Advisory Committee, they have not been so referred by virtue of section 150(1)(b) of that Act. Otherwise they make in relation to Northern Ireland only provision corresponding to provision contained in Regulations made by the Secretary of State for Work and Pensions in relation to Great Britain and accordingly, by virtue of section 149(3) of, and paragraph 10 of Schedule 5 to, that Act, are not subject to the requirement of section 149(2) for prior reference to the Social Security Advisory Committee.