PART 1SGeneral
Citation and commencementS
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
InterpretationS
2.—[(1) ...
...
“the 1992 Act” means the Social Security Contributions and Benefits Act 1992 ;
...
“local authority” in Scotland means a council constituted by section 2 of the Local Government etc. (Scotland) Act 1994 ;
...
“self-employed earner” has the meaning given by section 2(1)(b) of the 1992 Act (categories of earners);
...
“voluntary organisation” means a body, other than a public or local authority, the activities of which are carried on otherwise than for profit;
...
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
Marginal Citations
Non-dependantsS
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Young personsS
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupation of a dwelling as a homeS
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remunerative workS
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 2SFamilies
Entitlement of only one member of a familyS
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Couples: polygamous marriagesS
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applicant in receipt of income-related benefitS
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Responsibility for another personS
10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Membership of a householdS
11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 3SApplication of the Regulations
ApplicationS
12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prescribed yearsS
13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 4SEntitlement to council tax reduction
Conditions of entitlement to council tax reductionS
14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditions of entitlement to council tax reduction – dwellings in bands E to HS
14A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons not entitled to council tax reduction: absenteesS
15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons not entitled to council tax reduction: persons treated as not being in Great BritainS
16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons treated as being in Great BritainS
17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary absence from Great BritainS
18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons not entitled to council tax reduction: persons subject to immigration controlS
19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons not entitled to council tax reduction: studentsS
20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-recovery of council tax arrears caused by official errorS
20A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 5SApplicable amount
Applicable amountS
21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applicable amount: polygamous marriages.S
22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transitional family premiumS
22A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Applicable amount: persons who have an award of universal creditS
23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 6SIncome and capital
CHAPTER 1SGeneral
Calculation of income and capital of members of applicant's family and of a polygamous marriageS
24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Circumstances in which capital and income of non-dependant is to be treated as applicant'sS
25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 2SIncome and capital where there is an award of universal credit
Calculation of income and capital: persons who have an award of universal creditS
26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 3SIncome
Calculation of income on a weekly basisS
27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of child care chargesS
28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average weekly earnings of employed earnersS
29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average weekly earnings of self-employed earnersS
30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average weekly income other than earningsS
31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of average weekly income from ... tax creditsS
32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of weekly incomeS
33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 4SEmployed earners
Earnings of employed earnersS
34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of net earnings of employed earnersS
35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 5SSelf-employed earners
Earnings of self-employed earnersS
36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of net profit of self-employed earnersS
37.—(1) For the purposes of regulation 30 (average weekly earnings of self-employed earners) the earnings of an applicant to be taken into account are—
(a)in the case of a self-employed earner who is engaged in employment on that earner's own account, the net profit derived from that employment;
(b)in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations 1975 , that earner's share of the net profit derived from that employment, less—
(i)an amount in respect of income tax and social security contributions payable under the 1992 Act calculated in accordance with regulation 38 (deduction of tax and contributions for self-employed earners); and
(ii)one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.
(2) Any sum, where applicable, specified in Schedule 3 is to be disregarded when calculating a self-employed earner's net profit.
(3) For the purposes of paragraph (1)(a) the net profit of the employment is, except where paragraph (9) applies, to be calculated by taking into account the earnings of the employment over the assessment period less—
(a)subject to paragraphs (5) to (8), any expenses wholly and exclusively incurred in that period for the purposes of that employment;
(b)an amount in respect of—
(i)income tax; and
(ii)social security contributions payable under the 1992 Act; and
(c)one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.
(4) For the purposes of paragraph (1)(b) the net profit of the employment is to be calculated by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (5) to (8), any expenses wholly and exclusively incurred in that period for the purposes of the employment.
(5) Subject to paragraph (6), no deduction is to be made under paragraph (3)(a) or (4), in respect of—
(a)any capital expenditure;
(b)the depreciation of any capital asset;
(c)any sum employed or intended to be employed in the setting up or expansion of the employment;
(d)any loss incurred before the beginning of the assessment period;
(e)the repayment of capital on any loan taken out for the purposes of the employment;
(f)any expenses incurred in providing business entertainment; or
(g)any debts, except bad debts proved to be bad, but this sub-paragraph does not apply to any expenses incurred in the recovery of a debt.
(6) A deduction is to be made under paragraph (3)(a) or (4) in respect of the repayment of capital on any loan used for—
(a)the replacement in the course of business of equipment or machinery; and
(b)the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.
(7) The relevant authority is to refuse to make a deduction in respect of any expenses under paragraph (3)(a) or (4) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.
(8) For the avoidance of doubt—
(a)a deduction is not to be made under paragraph (3)(a) or (4) in respect of any sum unless it has been expended for the purposes of the employment;
(b)a deduction is to be made under paragraph (3)(a) or (4) in respect of—
(i)the excess of any value added tax paid over value added tax received in the assessment period;
(ii)any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair; and
(iii)any payment of interest on a loan taken out for the purposes of the employment.
(9) Where an applicant is engaged in employment as a child minder the net profit of the employment is to be one-third of the earnings of that employment, less—
(a)an amount in respect of—
(i)income tax; and
(ii)social security contributions payable under the 1992 Act;
calculated in accordance with regulation 38 (deduction of tax and contributions of self-employed earners); and
(b)one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.
(10) For the avoidance of doubt where an applicant is engaged in employment as a self-employed earner and is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of those employments is not to be offset against earnings in any other of the applicant's employments.
(11) The amount in respect of any qualifying premium is to be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period, and for the purposes of this regulation the daily amount of the qualifying premium is to be determined—
(a)where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365; and
(b)in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.
(12) In this regulation “qualifying premium” means any premium which is payable periodically in respect of a personal pension scheme and is payable on or after the date of the application.
Modifications etc. (not altering text)
Marginal Citations
Deduction of tax and contributions of self-employed earnersS
38.—(1) The amount to be deducted in respect of income tax under regulation 37(1)(b)(i), (3)(b)(i) or (9)(a)(i) (calculation of net profit of self-employed earners) is to be calculated on the basis of the amount of chargeable income and as if that income was assessable to income tax at the basic rate of tax applicable to the assessment period less only the personal relief to which the applicant is entitled under section 35(1) of the Income Tax Act 2007 (personal allowance for those aged under 65) as is appropriate to the applicant's circumstances, but, if the assessment period is less than one year the earnings to which the basic rate of tax is to be applied and the amount of the personal reliefs deductible under this paragraph are to be calculated on a pro rata basis.
(2) The amount to be deducted in respect of social security contributions under regulation 37(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) is the total of—
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)the amount of Class 4 contributions (if any) which would be payable under section 15 of the 1992 Act (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period, but if the assessment period is less than one year those limits are to be reduced pro rata.
(3) In this regulation “chargeable income” means—
(a)except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under regulation 37(3)(a) or, as the case may be, (4); and
(b)in the case of employment as a child minder, one-third of the earnings of that employment.
Textual Amendments
Modifications etc. (not altering text)
Marginal Citations
CHAPTER 6SOther income
Calculation of income other than earningsS
39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital treated as incomeS
40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notional incomeS
41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 7SCapital
Capital limitS
42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of capitalS
43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disregard of capital of child and young personS
44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income treated as capitalS
45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of capital in the United KingdomS
46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of capital outside the United KingdomS
47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notional capitalS
48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diminishing notional capitalS
49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital jointly heldS
50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of tariff income from capitalS
51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 7SStudents
CHAPTER 1SGeneral
Interpretation: studentsS
52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of studentsS
53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 2SIncome
Calculation of grant incomeS
54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calculation of covenant income where a contribution is assessedS
55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Covenant income where no grant income or no contribution is assessedS
56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relationship with amounts to be disregarded under Schedule 4S
57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other amounts to be disregardedS
58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of student loansS
59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of fee loansS
60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treatment of payments from access fundsS
61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disregard of contributionS
62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further disregard of student's incomeS
63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income treated as capitalS
64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disregard of changes occurring during summer vacationS
65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 8SAmount of reduction
Maximum council tax reductionS
66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-dependant deductionsS
67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended council tax reductionS
68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Duration of period of entitlement to extended council tax reductionS
69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount of extended council tax reductionS
70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended council tax reduction: moversS
71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relationship between council tax reduction and extended council tax reductionS
72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended council tax reduction (qualifying contributory benefits)S
73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Duration of extended council tax reduction (qualifying contributory benefits)S
74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount of extended council tax reduction (qualifying contributory benefits)S
75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extended council tax reduction (qualifying contributory benefits): moversS
76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relationship between council tax reduction and extended council tax reduction (qualifying contributory benefits)S
77. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alternative maximum council tax reductionS
78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Residents of a dwelling to whom regulation 14(6) does not applyS
79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 9SEffective date
Date on which entitlement is to beginS
80. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date on which a change of circumstances is to take effectS
81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 10SApplications
Who may applyS
82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Written applicationsS
83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telephone applicationsS
84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date on which an application is madeS
85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Evidence and informationS
86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of applicationsS
87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Withdrawal of applicationsS
88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 11SNotification of changes of circumstances
Duty to notify changes of circumstancesS
89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alternative means of notifying changes of circumstancesS
90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 11ASReviews
Review of determination on an applicationS
90A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Request for further reviewS
90B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Panel to conduct further reviewsS
90C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conduct of further reviewsS
90D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 12SElectronic communications
Sending documents by electronic communicationS
91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 13SConsequential and transitional provisions
Transitional provisionS
92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Savings provisionS
93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consequential amendmentsS
94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JOHN SWINNEY
A member of the Scottish Government
St Andrew's House,
Edinburgh