PART 1 S General

Citation and commencement S

1.  These Regulations may be cited as the Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 and come into force on 28th January 2013.

Interpretation S

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

“the 1973 Act” means the Employment and Training Act 1973 M1 ;

“the 1980 Act” means the Education (Scotland) Act 1980 M2 ;

“the 1992 Act” means the Social Security Contributions and Benefits Act 1992 M3 ;

“the 2006 Order” means the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006 M4 ;

“Abbeyfield Home” means an establishment run by the Abbeyfield Society including all bodies corporate or unincorporate which are affiliated to that Society;

“the Act” means the Local Government Finance Act 1992;

“additional statutory paternity pay” means additional statutory paternity pay under section 171ZEA or 171ZEB of the 1992 Act M5 ;

“adoption leave” means a period of absence from work on ordinary or additional adoption leave by virtue of section 75A or 75B of the Employment Rights Act 1996 M6 ;

“alternative maximum council tax reduction” means the amount of council tax reduction calculated in accordance with regulation 56 and Schedule 5;

“applicable amount” means the amount calculated in accordance with regulation 20 and Schedule 1;

“applicant” means a person applying for council tax reduction or, as the case may be, a person who is entitled to council tax reduction whose entitlement is or may be subject to re-assessment by the relevant authority;

“application” means an application for council tax reduction;

“appropriate maximum council tax reduction” means the maximum council tax reduction applicable to a person calculated in accordance with regulation 47;

[F1 “armed forces independence payment” means armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011;]

“assessment period” means a period described in regulation 31 (calculation of weekly income) or 34 (calculation of earnings of self-employed earners) over which income falls to be calculated;

“attendance allowance” means—

(a)

an attendance allowance under Part 3 of the 1992 Act M7 ;

(b)

an increase of disablement pension under section 104 or 105 of the 1992 Act;

(c)

F2 ...

(d)

a payment by virtue of article 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians) Scheme 1983 M8 or any analogous payment; or

(e)

any payment based on need for attendance which is paid as part of a war disablement pension;

“basic rate” has the same meaning as in section 989 of the Income Tax Act 2007 M9 ;

“the benefit Acts” means the 1992 Act, [F3 the Armed Forces (Pensions and Compensation) Act 2004 insofar as it relates to armed forces independence payment, Part 4 (personal independence payment) of the Welfare Reform Act 2012,] the Jobseekers Act 1995 M10 , the Welfare Reform Act 2007 M11 and the State Pension Credit Act 2002 M12 ;

“board and lodging accommodation” means accommodation provided to a person, or if that person is a member of a family, to that person or any other member of that person's family, for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which are cooked or prepared (by a person other than the person to whom the accommodation is provided or a member of that person's family) and consumed in that accommodation or associated premises;

“care home” in Scotland means a care home service within the meaning given by paragraph 2 of schedule 12 to the Public Services Reform (Scotland) Act 2010 M13 and in England and Wales has the meaning given by section 3 of the Care Standards Act 2000 M14 ;

“carer's allowance” means an allowance under section 70 of the 1992 Act M15 ;

“the Caxton Foundation” means the charitable trust of that name established on 28th March 2011 out of funds provided by the Secretary of State for the benefit of certain persons suffering from hepatitis C and other persons eligible for payment in accordance with its provisions;

“child” means a person under the age of 16 [F4 and where section 145A of the 1992 Act (entitlement after death of a child or qualifying young person) applies, then during the period prescribed under subsection (1) of that section (and only during that period)—

(a)

references in these Regulations to a child include the child in respect of whom there is entitlement under that section; and

(b)

for the purposes of these Regulations the circumstances pertaining to the child at the date of their death are deemed to continue throughout that period];

“child benefit” means child benefit under section 141 of the 1992 Act M16 ;

“child tax credit” means a child tax credit under section 8 of the Tax Credits Act 2002 M17 ;

“civil partnership” means a civil partnership which exists under or by virtue of the Civil Partnership Act 2004 M18 (and “civil partner” is to be construed accordingly);

“close relative” means a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister or, if any of the preceding persons is one member of a couple, the other member of that couple;

“contributory employment and support allowance” means a contributory allowance under Part 1 of the Welfare Reform Act 2007 M19 ;

“council tax benefit” means council tax benefit under the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 M20 ;

“council tax reduction” means a reduction in liability for council tax calculated in accordance with these Regulations;

“the Council Tax Reduction Regulations” means the Council Tax Reduction (Scotland) Regulations 2012 M21 ;

“couple” means—

(a)

a man and a woman who are married to each other and are members of the same household;

(b)

a man and a woman who are not married to each other but are living together as husband and wife;

(c)

two people of the same sex who are civil partners of each other and are members of the same household; or

(d)

two people of the same sex who are not civil partners of each other but are living together as if they were civil partners,

and for the purposes of sub-paragraph (d), two people of the same sex are to be regarded as living together as if they were civil partners if they would be regarded as living together as husband and wife were they two people of the opposite sex;

“course of study” means any course of study, whether or not it is a sandwich course and whether or not an educational grant or award is made for attending or undertaking it;

“date of application” means the date on which the application is made, or treated as made, for the purposes of regulation 5(9) (occupation of a dwelling as a home) and regulation 65 (date on which an application is made);

“designated office” means the office designated by the relevant authority as the office to which applications should be sent;

“disability living allowance” means a disability living allowance under section 71 of the 1992 Act M22 ;

“discount” means discount under section 79 of the Act M23 (discount of the amount of council tax payable);

“earnings” has the meaning given by regulation 32 (earnings of employed earners) or, as the case may be, regulation 35 (earnings of self-employed earners);

“educational establishment” has the meaning given by section 135(1) of the Education (Scotland) Act 1980 M24 ;

“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 the benefit of persons eligible for payment in accordance with its provisions;

“employed earner” is to be construed in accordance with section 2(1)(a) of the 1992 Act M25 and also includes a person who is in receipt of a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay or statutory maternity pay;

“employment and support allowance” means employment and support allowance under Part 1 of the Welfare Reform Act 2007 M26 ;

“Employment and Support Allowance Regulations” means the Employment and Support Allowance Regulations 2008 M27 ;

“enactment” includes an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament;

“extended council tax reduction (qualifying contributory benefits)” means an extension of a period of entitlement to council tax reduction under regulation 49;

“family” means—

(a)

a couple;

(b)

a couple and a member of the same household for whom one of them is, or both are, responsible and who is a child or young person; or

(c)

subject to regulation 22 (circumstances in which capital and income of non-dependant is to be treated as applicant's), a person who is not a member of a couple and a member of the same household for whom the person is responsible and who is a child or a young person;

“first authority” means the relevant authority to which a mover was liable to pay council tax for the dwelling that person resided in immediately before moving to the dwelling in the area of the second authority;

“full-time student” means a person attending or undertaking a full-time course of study M28 ;

“the Fund” means moneys made available from time to time by the Secretary of State for the benefit of persons eligible for payment in accordance with the provisions of a scheme established by the Secretary of State on 10th or 24th April 1992, as the case may be;

“guarantee credit” is to be construed in accordance with sections 1 and 2 of the State Pension Credit Act 2002 M29 ;

“guaranteed income payment” means a payment referred to in article 15(1)(c) or 29(1)(a) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 and determined in accordance with article 24 of that Order M30 ;

“housing benefit” means housing benefit under section 130 of the 1992 Act M31 ;

“incapacity benefit” means incapacity benefit under section 30A, 40 or 41 of the 1992 Act M32 ;

“income” has the meaning given by regulation 27 (meaning of “income”);

“an income-based jobseeker's allowance” and “a joint-claim jobseeker's allowance” have the same meaning as they have in the Jobseekers Act 1995 by virtue of section 1(4) of that Act M33 ;

“income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2007 M34 ;

“income support” means income support under section 124 of the 1992 Act;

“Income Support Regulations” means the Income Support (General) Regulations 1987 M35 ;

“independent hospital”—

(a)

in Scotland, means an independent health care service as defined in section 10F(1)(a) and (b) of the National Health Service (Scotland) Act 1978 M36 ;

(b)

in England, means a hospital as defined by section 275 of the National Health Service Act 2006 M37 that is not a health service hospital as defined by that section; and

(c)

in Wales, has the meaning assigned to it by section 2 of the Care Standards Act 2000 M38 ;

“the Independent Living Fund (2006)” means the Trust of that name established by a deed dated 10th April 2006 and made between the Secretary of State for Work and Pensions of the one part and Margaret Rosemary Cooper, Michael Beresford Boyall and Marie Theresa Martin of the other part;

“invalid carriage or other vehicle” means a vehicle propelled by a petrol engine or by electric power supplied for use on the road and to be controlled by the occupant;

“limited capability for work” has the meaning given by section 1(4) of the Welfare Reform Act 2007;

“local authority” in Scotland means a council constituted by section 2 of the Local Government etc. (Scotland) Act 1994 M39 ;

“the London Bombings Relief Charitable Fund” means the company limited by guarantee (number 5505072) and registered charity of that name established on 11th July 2005 for the purpose of (amongst other things) relieving sickness, disability or financial need of victims (including families or dependants of victims) of the terrorist attacks carried out in London on 7th July 2005;

“lone parent” means a person who has no partner and who is responsible for and a member of the same household as a child or young person;

“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 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 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 the relief of poverty or distress among those suffering from haemophilia;

“main phase employment and support allowance” means an employment and support allowance where the calculation of the amount payable in respect of the applicant includes a component under section 2(1)(b) or 4(2)(b) of the Welfare Reform Act 2007;

“maternity leave” means a period during which a woman is absent from work because she is pregnant or has given birth to a child, and at the end of which she has a right to return to work under the terms of her contract of employment or under Part 8 of the Employment Rights Act 1996 M40 ;

“medically approved” means certified by a medical practitioner;

“member of a couple” means a member of a married or unmarried couple;

“MFET Limited” means the company limited by guarantee (number 7121661) of that name, established for the purpose in particular of making payments in accordance with arrangements made with the Secretary of State to persons who have acquired HIV as a result of treatment by the NHS with blood or blood products;

“mover” means a person who moves from a dwelling in which the person is resident, and in respect of which the person is liable to pay council tax to the first authority, to reside in a dwelling in the area of the second authority and any reference to a mover is to be construed as including a reference to the mover's partner;

“net earnings” means earnings calculated in accordance with regulation 33 (calculation of net earnings of employed earners);

“net profit” means profit calculated in accordance with regulation 36 (calculation of net profit of self-employed earners);

“new dwelling” means, for the purposes of the definition of “second authority” and regulation 52 (extended council tax reduction (qualifying contributory benefits): movers), the dwelling to which an applicant has moved, or is about to move, in which the applicant is or will be resident;

“non-dependant” has the meaning given by regulation 3 (non-dependants);

“non-dependant deduction” means a deduction that is to be made under regulation 48 (non-dependant deductions);

“occupational pension” means any pension or other periodical payment under an occupational pension scheme but does not include any discretionary payment out of a fund established for relieving hardship in particular cases;

“official error” means an error made by an officer of the Department for Work and Pensions acting as such which no person outside the Department caused or to which no person outside the Department materially contributed to but excludes any error of law which is shown to have been an error by virtue of a subsequent decision of the Upper Tribunal [F5 or a court];

“ordinary statutory paternity pay” means ordinary statutory paternity pay under section 171ZA or 171ZB of the 1992 Act M41 ;

“partner” means—

(a)

where an applicant is a member of a couple, the other member of that couple; or

(b)

where an applicant is polygamously married to two or more members of the applicant's household, any such member to whom the applicant is married;

“paternity leave” means a period of absence from work on ordinary paternity leave by virtue of sections 80A or 80B of the Employment Rights Act 1996 M42 or on additional paternity leave by virtue of sections 80AA or 80BB of that Act;

“patient” means a person who is undergoing medical or other treatment as an in-patient in any hospital or similar institution;

“payment” includes part of a payment;

“pension fund holder” means with respect to a personal pension scheme or an occupational pension scheme, the trustees, managers or scheme administrators, as the case may be, of the scheme concerned;

“personal independence payment” has the meaning given by Part 4 of the Welfare Reform Act 2012 M43 ;

“personal pension scheme” means—

(a)

a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993 M44 ;

(b)

an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 M45 or a substituted contract within the meaning of section 622(3) of that Act M46 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 M47 ; or

(c)

a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 M48 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;

“policy of life insurance” means any instrument by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life;

“polygamous marriage” means any marriage during the subsistence of which a party to it is married to more than one person and the ceremony of marriage took place under the law of a country which permits polygamy, and cognate expressions are to be construed accordingly;

“public authority” includes any person certain of whose functions are functions of a public nature;

“qualifying age for state pension credit” means (in accordance with section 1(2)(b) and (6) of the State Pension Credit Act 2002 M49 )—

(a)

in the case of a woman, pensionable age; or

(b)

in the case of a man, the age which is pensionable age in the case of a woman born on the same day as the man;

“qualifying contributory benefit” means—

(a)

severe disablement allowance under section 68 of the 1992 Act M50 ;

(b)

incapacity benefit; or

(c)

contributory employment and support allowance;

“qualifying income-related benefit” means—

(a)

income support;

(b)

income-based jobseeker's allowance; or

(c)

income-related employment and support allowance;

“reduction week” means a period of 7 consecutive days commencing on a Monday and ending on a Sunday;

“relative” means a close relative, grandparent, grandchild, uncle, aunt, nephew or niece;

“relevant authority” means a local authority administering council tax reduction;

“relevant child care charges” has the meaning given by regulation 29(5) (treatment of child care charges);

“remunerative work” has the meaning given by regulation 6 (remunerative work);

“rent” means “eligible rent” to which regulation 12B of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 M51 refers, less any deductions in respect of non-dependants to be made under regulation 55 (non-dependant deductions) of those Regulations;

“residential accommodation” means accommodation which is provided in—

(a)

a care home;

(b)

an independent hospital;

(c)

an Abbeyfield Home; or

(d)

an establishment managed or provided by a body incorporated by Royal Charter or constituted by Act of Parliament or by Act of the Scottish Parliament other than a local social services authority;

“retirement pension income” means retirement pension income within the meaning of section 16 of the State Pension Credit Act 2002 M52 ;

“sandwich course” has the meaning prescribed in regulation 4(2) of the Education (Student Loans) (Scotland) Regulations 2007 M53 , regulation 2(10) of the Education (Student Support) Regulations 2011 M54 or regulation 2(10) of the Education (Student Support) (No. 2) Regulations (Northern Ireland) 2009 M55 , as the case may be;

“savings credit” is to be construed in accordance with sections 1 and 3 of the State Pension Credit Act 2002 M56 ;

“second adult” has the meaning given to it in Schedule 5;

“second authority” means the authority to which a mover is liable to make payments for the new dwelling;

“self-employed earner” is to be construed in accordance with section 2(1)(b) of the 1992 Act;

“service user group” means a group of individuals that is consulted by or on behalf of—

(a)

a Health Board, Special Health Board or the Agency in consequence of a function under section 2B of the National Health Service (Scotland) Act 1978 M57 ;

(b)

a landlord authority in consequence of a function under section 105 of the Housing Act 1985 M58 ;

(c)

a public authority in consequence of a function under section 149 of the Equality Act 2010 M59 or section 49A of the Disability Discrimination Act 1995 M60 ;

(d)

a best value authority in consequence of a function under section 3 of the Local Government Act 1999 M61 ;

(e)

a local authority landlord or registered social landlord in consequence of a function under section 53 of the Housing (Scotland) Act 2001 M62 ;

(f)

a relevant English body or a relevant Welsh body in consequence of a function under section 242 of the National Health Service Act 2006 M63 ;

(g)

a Local Health Board in consequence of a function under section 183 of the National Health Service (Wales) Act 2006 M64 ;

(h)

the Commission in consequence of a function under sections 4 or 5 of the Health and Social Care Act 2008 M65 ;

(i)

the regulator or a private registered provider of social housing in consequence of a function under sections 98, 193 or 196 of the Housing and Regeneration Act 2008 M66 ; or

(j)

a public or local authority in Great Britain in consequence of a function conferred under any other enactment,

for the purposes of monitoring and advising on a policy of that body or authority which affects or may affect persons in the group, or of monitoring or advising on services provided by that body or authority which are used (or may potentially be used) by those persons;

“single applicant” means an applicant who does not have a partner and who is not a lone parent;

“the Skipton Fund” means the ex-gratia payment scheme administered by the Skipton Fund Limited, incorporated on 25th March 2004, for the benefit of certain persons suffering from hepatitis C and other persons eligible for payment in accordance with the scheme's provisions;

“sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc Act 1993 M67 out of sums allocated to it for distribution under that section;

“state pension credit” means state pension credit under the State Pension Credit Act 2002;

“statutory adoption pay” means statutory adoption pay payable under section 171ZL of the 1992 Act M68 ;

“statutory maternity pay” means statutory maternity pay payable under section 164 of the 1992 Act M69 ;

“statutory sick pay” means statutory sick pay under section 151 of the 1992 Act M70 ;

“student” means a person, other than a person in receipt of a training allowance, who is attending or undertaking—

(a)

a course of study at an educational establishment; or

(b)

a qualifying course as defined for the purposes of Parts 2 and 4 of the Jobseeker's Allowance Regulations 1996 M71 ;

“student loan” means a loan towards a student's maintenance pursuant to section 73 of the 1980 Act M72 , any regulations made under section 22 of the Teaching and Higher Education Act 1998 M73 or article 3 of the Education (Student Support) (Northern Ireland) Order 1998 M74 and includes a young student's bursary paid under regulation 4(1)(c) of the Students' Allowances (Scotland) Regulations 2007 M75 ;

“training allowance” means an allowance (whether by way of periodical grants or otherwise) payable—

(a)

out of public funds by a Government department or by or on behalf of the Secretary of State, Skills Development Scotland, Scottish Enterprise or Highlands and Islands Enterprise, the Young People's Learning Agency for England, the Chief Executive of Skills Funding or the Welsh Ministers;

(b)

to a person for the person's maintenance or in respect of a member of the person's family; and

(c)

for the period, or part of the period, during which the person is following a course of training or instruction provided by, or in pursuance of arrangements made with, that department or approved by that department in relation to the person or so provided or approved by or on behalf of the Secretary of State, Skills Development Scotland, Scottish Enterprise or Highlands and Islands Enterprise or the Welsh Ministers,

but it does not include an allowance paid by any Government department to or in respect of a person by reason of the fact that the person is following a course of full-time education, other than under arrangements made under section 2 of the 1973 Act M76 , or is training as a teacher;

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

[F6 “universal credit” has the meaning given by section 1 of the Welfare Reform Act 2012;]

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

“war disablement pension” means any retired pay or pension or allowance payable in respect of disablement under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003 M77 ;

“war widow's pension” means any pension or allowance payable to a woman as a widow or surviving civil partner under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003 in respect of the death or disablement of any person;

“war widower's pension” means any pension or allowance payable to a man as a widower or surviving civil partner under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003 in respect of the death or disablement of any person;

“working tax credit” means a working tax credit under section 10 of the Tax Credits Act 2002 M78 ;

“Working Tax Credit Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 M79 ; and

“young person” has the meaning given by regulation 4 (young persons).

(2) For the purposes of the definition of “full-time student” in paragraph (1), a person is to be regarded as attending or, as the case may be, undertaking a full-time course of study—

(a) subject to paragraph (3), in the case of a person attending or undertaking a part of a modular course which would be a full-time course of study for the purposes of this Part, for the period beginning on the day on which that part of the course starts and ending—

(i) on the last day on which that person is registered with the educational establishment as attending or undertaking that part as a full-time course of study; or

(ii) on such earlier date, if any, as the person finally abandons the course or is dismissed from it; and

(b) in any other case, throughout the period beginning on the date on which that person starts attending or undertaking the course and ending on the last day of the course or on such earlier date (if any) as the person finally abandons the course or is dismissed from it.

(3) The period referred to in paragraph (2)(a) includes—

(a) where a person has failed examinations or has failed to successfully complete a module relating to a period when the person was attending or undertaking a part of the course as a full-time course of study, any period in respect of which the person attends or undertakes the course for the purpose of retaking those examinations or that module; and

(b) any period of vacation within the period specified in that paragraph or immediately following that period except where the person has registered with the educational establishment to attend or undertake the final module in the course and the vacation immediately follows the last day on which the person is required to attend or undertake the course.

(4) In paragraph (2), “modular course” means a course of study which consists of two or more modules, the successful completion of a specified number of which is required before a person is considered by the educational establishment to have completed the course.

(5) For the purposes of these Regulations, a person is on an income-based jobseeker's allowance on any day in respect of which an income-based jobseeker's allowance is payable to that person and on any day—

(a) in respect of which the person satisfies the conditions for entitlement to an income-based jobseeker's allowance but where the allowance is not paid as a consequence of regulation section 19 or 19A or regulations made under section 17A of the Jobseekers Act 1995 M80 (circumstances in which a jobseeker's allowance is not payable);

(b) which is a waiting day for the purposes of paragraph 4 of Schedule 1 to that Act and which falls immediately before a day in respect of which an income-based jobseeker's allowance is payable to the person or would be payable to the person but for section 19 or 19A or regulations made under section 17A of that Act;

(c) in respect of which the person is a member of a joint-claim couple for the purposes of the Jobseekers Act 1995 and no joint-claim jobseeker's allowance is payable in respect of that couple as a consequence of either member of the couple being subject to sanctions for the purposes of section 19 or 19A of that Act; or

(d) in respect of which an income-based jobseeker's allowance or a joint-claim jobseeker's allowance would be payable but for a restriction imposed pursuant to section 6B, 7, 8 or 9 of the Social Security Fraud Act 2001 M81 (loss of benefit provisions).

(6) For the purposes of these Regulations, a person is on an income-related employment and support allowance on any day in respect of which an income-related employment and support allowance is payable to the person and on any day—

(a) in respect of which the person satisfies the conditions for entitlement to an income-related employment and support allowance but where the allowance is not paid as a consequence of section 18 of the Welfare Reform Act 2007 M82 (disqualification); or

(b) which is a waiting day for the purposes of paragraph 2 of Schedule 2 to that Act and which falls immediately before a day in respect of which an income-related employment and support allowance is payable to the person or would be payable to the person but for section 18 of that Act.

(7) In these Regulations, where an amount is to be rounded to the nearest penny, a fraction of a penny is to be disregarded if it is less than half a penny and if it is a half penny or more it is to be treated as a whole penny.

(8) For the purposes of these Regulations, two persons are to be taken to be estranged only if their estrangement constitutes a breakdown of the relationship between them.

(9) In these Regulations references to any person in receipt of a guarantee credit, a savings credit or state pension credit includes a reference to a person who would be in receipt of that credit but for regulation 13 of the State Pension Credit Regulations 2002 M83 (small amounts of state pension credit).

Textual Amendments

F1 Words in reg. 2(1) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(2)(a)

F2 Words in reg. 2 revoked (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 3(a)

F3 Words in reg. 2(1) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(2)(b)

F4 Words in reg. 2(1) inserted (25.11.2013) by The Council Tax Reduction (Scotland) Amendment (No. 4) Regulations 2013 (S.S.I. 2013/287), regs. 1, 13(a)

F5 Words in reg. 2 substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 3(b)

F6 Words in reg. 2(1) inserted (25.11.2013) by The Council Tax Reduction (Scotland) Amendment (No. 4) Regulations 2013 (S.S.I. 2013/287), regs. 1, 13(b)

Marginal Citations

M1 1973 c.50.

M2 1980 c.44.

M3 1992 c.4.

M4 S.I. 2006/606.

M5 Section 171ZEA was inserted by section 6 of the Work and Families Act 2006 (c.18) and section 171ZEB was inserted by section 7 of that Act.

M6 1996 c.18. Sections 75A and 75B were inserted by section 3 of the Employment Act 2002 (c.22) and amended by paragraphs 33 and 34, respectively, of Schedule 1 to the Work and Families Act 2006 (c.18).

M7 Part 3 was relevantly amended by section 66 of the Welfare Reform and Pensions Act 1999 (c.30), section 60 of the Welfare Reform Act 2007 (c.5) and S.I. 2011/2426.

M8 S.I. 1983/686 as relevantly amended by S.I. 1984/1675 and 2001/420.

M9 2007 c.3. Section 989 was relevantly amended by section 26 of the Scotland Act 2012 (c.11).

M10 1995 c.18.

M11 2007 c.5.

M12 2002 c.16.

M13 2010 asp 8.

M14 2000 c.14. Section 3 was amended by paragraph 4 of Schedule 5 to the Health and Social Care Act 2008 (c.14).

M15 Section 70 was amended by S.I. 1994/2556, 2002/1457 and 2011/2426.

M16 Section 141 was amended by section 1 of the Child Benefit Act 2005 (c.6).

M17 2002 c.21.

M18 2004 c.33.

M19 Part 1 was relevantly amended by section 52 of the Welfare Reform Act 2012 (c.5).

M20 S.I. 2006/216.

M21 S.S.I. 2012/303.

M22 Section 71 was amended by section 67 of the Welfare Reform and Pensions Act 1999 (c.30).

M23 Section 79 was amended by S.S.I. 2005/51.

M24 1980 c.44. Section 135 was relevantly amended by section 82(2) of, and Schedule 11 to, the Self-Governing Schools etc. (Scotland) Act 1989 (c.3) and by paragraph 7(7) of Schedule 9, and Schedule 10, to the Further and Higher Education (Scotland) Act 1992 (c.37).

M25 Section 2(1)(a) was amended by paragraph 171 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c.1).

M26 Part 1 was relevantly amended by sections 50, 52 and 53 of the Welfare Reform Act 2012 (c.5).

M27 S.I. 2008/794.

M28 Paragraphs (2) to (4) of this regulation make further provision in relation to the meaning of “full-time student”.

M29 Section 2 was amended by paragraphs 140 and 141 of Schedule 24 to the Civil Partnership Act 2004 (c.33).

M30 S.I. 2011/517.

M31 Section 130 was relevantly amended by paragraph 3 of Schedule 9 to the Local Government Finance Act 1992 (c.14), Part 6 of Schedule 19 to the Housing Act 1996 (c.52) and paragraph 1(3) of Schedule 5, and Schedule 8, to, the Welfare Reform Act 2007 (c.5).

M32 Section 30A was inserted by section 1 of the Social Security (Incapacity for Work) Act 1994 (c.18) (“the 1994 Act”) and amended by section 64 of the Welfare Reform and Pensions Act 1999 (c.30) and paragraph 14 of Schedule 24 to the Civil Partnership Act 2004 (c.33). Section 40 was substituted by paragraph 8 of Schedule 1 to the 1994 Act. Section 41 was substituted by paragraph 9 of Schedule 1 to the 1994 Act and amended by paragraph 21 of Schedule 4 to the Pensions Act 1995 (c.26).

M33 Section 1(4) was relevantly amended by paragraph 2 of Schedule 7 to the Welfare Reform and Pensions Act 1999 (c.30). Paragraph (5) of this regulation makes further provision in relation to these allowances.

M34 Paragraph (6) of this regulation makes further provision in relation to this allowance.

M35 S.I. 1987/1967.

M36 1978 c.29. Section 10F was inserted by section 108 of the Public Services Reform (Scotland) Act 2010 (asp 8).

M37 2006 c.41.

M38 2000 c.14. Section 2 was relevantly amended by section 106 of the Health and Social Care (Community Health and Standards) Act 2003 (c.43), paragraph 199 of Schedule 1 to the National Health Service (Consequential Provisions) Act 2006 (c.43), paragraph 3 of Schedule 5 to the Health and Social Care Act 2008 (c.14) and S.I. 2002/325.

M39 1994 c.39. Section 2 was amended by paragraph 232(1) of Schedule 22 to the Environment Act 1995 (c.25).

M40 1996 c.18. Part 8 was substituted by Part 1 of Schedule 4 to the Employment Relations Act 1999 (c.26).

M41 Sections 171ZA and 171ZB were inserted by section 2 of the Employment Act 2002 (c.22) and moved under a new heading by paragraph 11 of Schedule 1 to the Work and Families Act 2006 (c.18).

M42 Sections 80A and 80B were inserted by section 1 of the Employment Act 2002 (c.22) and amended, respectively, by paragraphs 35 and 36 of Schedule 1 to the Work and Families Act 2006 (c.18). Sections 80AA and 80BB were inserted by sections 3 and 4 of the Work and Families Act 2006.

M43 2012 c.5.

M44 1993 c.48. Section 1 was amended by section 239 of the Pensions Act 2004 (c.35), paragraph 1 of Schedule 27 to the Finance Act 2007 (c.11) and S.I. 2007/3014.

M45 1988 c.1. Sections 620 and 621 were repealed by Part 3 of Schedule 42 to the Finance Act 2004 (c.12).

M46 Section 622 was repealed by Part 3 of Schedule 42 to the Finance Act 2004.

M47 2004 c.12.

M48 1988 c.1. Chapter 4 was repealed by Schedule 42 to the Finance Act 2004.

M49 2002 c.16.

M50 Section 68 was repealed by Part 4 of Schedule 13 to the Welfare Reform and Pensions Act 1999 (c.30) but continues to have effect by virtue of S.I. 2000/2958.

M51 S.I. 2006/214. Regulation 12B was inserted by S.I. 2007/2868.

M52 Section 16 was amended by paragraph 32 of Schedule 1 to the Sovereign Grant Act 2011 (c.15) and S.I. 2002/1792.

M53 S.S.I. 2007/154.

M54 S.I. 2011/1986.

M55 S.I. 2009/373; relevantly amended by S.I. 2010/383.

M56 Section 3 was amended by paragraph 140 of Schedule 24 to the Civil Partnership Act 2004 (c.33) and S.I. 2002/1792.

M57 1978 c.29. Section 2B was inserted by section 7 of the National Health Service Reform (Scotland) Act 2004 (asp 7).

M58 1985 c.68. Section 105 was amended by paragraph 5 of Schedule 8 to the Local Government (Wales) Act 1994 (c.19), paragraph 5 of Schedule 16 to the Government of Wales Act 1998 (c.38), paragraph 2(2) of Schedule 1 to the Anti-Social Behaviour Act 2003 (c.38) and S.I. 1996/2325 and 2010/866.

M59 2010 c.15.

M60 1995 c.50. Section 49A was inserted by section 3 of the Disability Discrimination Act 2005 (c.13) and amended by S.I. 2010/2279. It was repealed for England and Wales and Scotland by Schedule 27 to the Equality Act 2010 (c.15) but continues to have effect in Northern Ireland.

M61 1999 c.27. Section 3 was amended by section 137 of the Local Government and Public Involvement in Health Act 2007 (c.28).

M62 2001 asp 10.

M63 2006 c.41. Section 242 was amended by section 233 of the Local Government and Public Involvement in Health Act 2007 (c.28), and section 18(7) of the Health Act 2009 (c.21).

M64 2006 c.42.

M65 2008 c.14. Section 4 was amended by section 189 of the Health and Social Care Act 2012 (c.7).

M66 2008 c.17. Section 193 was amended by section 176(1) of, and paragraph 4 of Schedule 17 and Part 27 of Schedule 25 to, the Localism Act 2011 (c.20). Section 196 was amended by section 26 of the Local Democracy, Economic Development and Construction Act 2009 (c.20) and paragraph 55 of Schedule 19 and Part 26 of Schedule 25 to the Localism Act 2011 (c.20).

M67 1993 c.39. Section 23(2) was amended by S.I. 1996/3095, 1999/1563 and 2006/654.

M68 Section 171ZL was inserted by section 4 of the Employment Act 2002 (c.22) and amended by S.I. 2006/2012 and 2011/740.

M69 Section 164 was amended by paragraph 12 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and section 20 of, and paragraph 6 of Schedule 7 and Part 1 of Schedule 8 to, the Employment Act 2002 (c.22) and moved under a new heading by paragraph 11 of Schedule 1 to the Work and Families Act 2006 (c.18).

M70 Section 151 was amended by paragraph 34 of Schedule 1 to the Social Security (Incapacity for Work) Act 1994 (c.18) and paragraph 9 of Schedule 1 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2).

M71 Part 2 was relevantly amended by S.I. 1998/1272 and 2005/2929.

M72 Section 73 was amended by section 73 of the Self-Governing Schools etc. (Scotland) Act 1989 (c.39) and section 3(2) of the Education (Graduate Endowment and Student Support) (Scotland) Act 2001 (asp 6).

M73 1998 c.30. Section 22 was amended by section 146(2) of, and Schedule 11 to, the Learning and Skills Act 2000 (c.21), paragraph 236 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c.1), section 147 of the Finance Act 2003 (c.14), sections 42 and 43 of, and Schedule 7 to, the Higher Education Act 2004 (c.8), section 257 of the Apprenticeships, Skills, Children and Learning Act 2009 (c.22) and section 76 of the Education Act 2011 (c.21).

M74 S.I. 1998/1760 (N.I. 14), to which there are amendments not relevant to these Regulations.

M75 S.S.I. 2007/153.

M76 Section 2 was substituted by section 25 of the Employment Act 1988 (c.19) and amended by section 29 of, and Schedule 7 to, the Employment Act 1989 (c.38) and section 47 of the Trade Union Reform and Employment Rights Act 1993 (c.19).

M77 2003 c.1. Section 639(2) was inserted by section 19 of the Finance Act 2005 (c.7).

M78 2002 c.21.

M79 S.I. 2002/2005.

M80 Sections 19 and 19A were substituted by section 46 of the Welfare Reform Act 2012 (c.5).

M81 2001 c.11. Section 6B was inserted by section 24 of the Welfare Reform Act 2009 (c.24) (“the 2009 Act”) and amended by section 113 of the Welfare Reform Act 2012 (c.5) (“the 2012 Act”). Section 7 was amended by paragraph 45(2) of Schedule 2 to the State Pension Credit Act 2002 (c.16) (“the 2002 Act”), section 49(1) of, and paragraph 23(2) of Schedule 3 to, the Welfare Reform Act 2007 (c.5) (“the 2007 Act”), paragraph 2 of Schedule 4, and Schedule 7, to the 2009 Act and S.S.I. 2011/2298. Section 8 was amended by paragraph 3 of Schedule 4, and Schedule 7, to the 2009 Act and section 113 of the 2012 Act. Section 9 was amended by paragraph 46 of Schedule 2 to the 2002 Act, paragraph 23 of Schedule 3 to the 2007 Act, paragraph 4 of Schedule 4 to the 2009 Act and section 113 of the 2012 Act.

M82 2007 c.5.

M83 S.I. 2002/1792.

Non-dependants S

3.—(1) In these Regulations, “ non-dependant” means any person, except someone to whom paragraph (2) applies, who normally resides with the applicant or with whom the applicant normally resides.

(2) This paragraph applies to—

(a) any member of the applicant's family;

(b) if the applicant is polygamously married, any partner of the applicant and any child or young person who is a member of the applicant's household and for whom the applicant or one of the applicant's partners is responsible;

(c) a child or young person who is living with the applicant but who is not treated as a member of the applicant's household by virtue of regulation 11 (membership of a household);

(d) subject to paragraph (3), any person who, with the applicant, is jointly and severally liable to pay council tax in respect of a dwelling for any day under section 75 of the Act M84 (persons liable to pay council tax);

(e) subject to paragraph (3), any person who is liable to make payments on a commercial basis to the applicant or any partner of the applicant in respect of the person's occupation of the dwelling; and

(f) any person who lives with the applicant in order to care for the applicant or any partner of the applicant, or both of them, and who is engaged by a charitable or voluntary organisation which makes a charge to the applicant or the applicant's partner, or both of them, for the services provided by that person.

(3) Excepting persons to whom paragraph (2)(a) to (c) and (f) refer, a person to whom any of the following sub-paragraphs applies is a non-dependant for the purpose of these Regulations—

(a) a person who resides with another person to whom the first mentioned person is liable to make payments in respect of the dwelling and either—

(i) that other person is a close relative of the first mentioned person or of the first mentioned person's partner; or

(ii) the tenancy or other agreement between them is other than on a commercial basis;

(b) a person whose liability to make payments in respect of the dwelling appears to the relevant authority to have been created to take advantage of the council tax reduction scheme set out in these Regulations, except someone who was, for any period within the 8 weeks prior to the creation of the agreement giving rise to the liability to make the payments, otherwise liable to make payments of rent in respect of the same dwelling; and

(c) a person who becomes jointly and severally liable with the applicant for council tax in respect of a dwelling and who was, at any time during the period of 8 weeks prior to becoming liable, a non-dependant of one or more of the other residents in that dwelling who are liable for the council tax, unless the relevant authority is satisfied that the change giving rise to the new liability was not made to take advantage of the council tax reduction scheme set out in these Regulations.

Marginal Citations

M84 Section 75 was amended by section 4 of the Education (Graduate Endowment and Student Support) (Scotland) Act 2001 (asp 6) and paragraph 19 of schedule 10 to the Housing (Scotland) Act 2001 (asp 10).

Young persons S

4.—(1) In these Regulations “ young person” means a person who falls within the definition of “qualifying young person” in section 142 of the 1992 Act M85 (child and qualifying young person).

(2) Paragraph (1) does not apply to a person who is—

(a) on income support, an income-based jobseeker's allowance or an income-related employment and support allowance; or

(b) a person to whom section 6 of the Children (Leaving Care) Act 2000 M86 (exclusion from benefits) applies.

[F7 (3) Where section 145A of the 1992 Act (entitlement after death of a child or qualifying young person) applies, then during the period prescribed under subsection (1) of that section (and only during that period)—

(a) references in these Regulations to a young person include the young person in respect of whom there is entitlement under that section; and

(b) for the purposes of these Regulations the circumstances pertaining to the young person at the date of their death are deemed to continue throughout that period.]

Textual Amendments

F7 Reg. 4(3) inserted (25.11.2013) by The Council Tax Reduction (Scotland) Amendment (No. 4) Regulations 2013 (S.S.I. 2013/287), regs. 1, 14

Marginal Citations

M85 Section 142 was substituted by section 1(2) of the Child Benefit Act 2005 (c.6).

M86 2000 c.35.

Occupation of a dwelling as a home S

5.—(1) Subject to the following provisions of this regulation, a person is to be treated as occupying as that person's home the dwelling normally occupied as a home—

(a) by the person or, if the person is a member of a family, by the person and that family; or

(b) if the person is polygamously married, by the person, the person's partners and any child or young person for whom the person or any of the partners is responsible and who is a member of that same household,

and is not to be treated as occupying any other dwelling as the person's home.

(2) In determining whether a dwelling is the dwelling normally occupied as a person's home for the purpose of paragraph (1) regard must be had to any other dwelling occupied by the person or any other person referred to in that paragraph whether or not that dwelling is in Scotland.

(3) Where a single person or a lone parent is a student, other than a full-time student to whom regulation 20 of the Council Tax Reduction Regulations applies (persons not entitled to council tax reduction: students), or is on a training course, and is liable to make payments in respect of either—

(a) the dwelling which that person occupies for the purpose of attending a course of study or a training course; or

(b) the dwelling which the person occupies when not attending the course,

the person is to be treated as occupying as a home the dwelling in respect of which the person is liable to make those payments.

(4) Where a person has required to move into temporary accommodation because of the carrying out of essential repairs to the dwelling normally occupied as that person's home, and the person is liable to make payments in respect of either the dwelling which the person normally occupies as a home or the temporary accommodation, the person is to be treated as occupying as a home the dwelling in respect of which the person is liable to make payments.

(5) Where a person is required to reside in a dwelling which is a bail hostel or probation hostel approved by the Secretary of State under section 13 of the Offender Management Act 2007 M87 , that person is not to be treated as occupying that dwelling as a home.

(6) Where a person is liable to make payments in respect of two (but not more than two) dwellings, that person is to be treated as occupying both dwellings as a home—

(a) for a period not exceeding 52 weeks, where the person left and remains absent from the former dwelling occupied as a home and for which the person is liable to make payments through fear of violence in that dwelling or by a former member of the person's family and—

(i) the relevant authority is satisfied that it is reasonable that the person should be entitled to council tax reduction in respect of the former dwelling and the present dwelling occupied as a home, and

(ii) the person intends to return to occupy the former dwelling as a home;

(b) in the case of a person who is a member of a couple or a member of a polygamous marriage, where the person or one partner is a student, other than a full-time student to whom regulation 20 of the Council Tax Reduction Regulations (persons not entitled to council tax reduction: students) applies, or is on a training course, and it is—

(i) unavoidable that the partners should occupy two separate dwellings; and

(ii) reasonable that the person should be entitled to council tax reduction in respect of both dwellings;

(c) where, because of the number of persons in a family referred to in paragraph (1)(a) or (b), those persons have been housed by a housing authority in two separate dwellings;

(d) where a person has moved and occupies the second dwelling as a home, except where paragraph (4) applies, for a period not exceeding 4 reduction weeks from the date on which that person moved if the person could not reasonably have avoided liability in respect of two dwellings; or

(e) where a person—

(i) is treated by virtue of paragraph (8) as occupying a dwelling as that person's home and paragraph (8)(c)(i) applies; and

(ii) the person has occupied another dwelling as a home on any day within the period of 4 weeks immediately preceding the date the person moved to the new dwelling,

for a period not exceeding 4 reduction weeks immediately preceding the date on which the person moved.

(7) Where—

(a) a person moves into a dwelling for which that person is not liable to make payments (“the new dwelling”);

(b) immediately before that move, the person was liable to make payments for the dwelling previously occupied as a home (“the former dwelling”); and

(c) that liability continues after the person moves into the new dwelling,

the person is to be treated as occupying the former dwelling as a home for a period not exceeding 4 reduction weeks if the person could not reasonably have avoided liability in respect of the former dwelling.

(8) Where—

(a) a person moved into a dwelling and was liable to make payments in respect of that dwelling before moving in; and

(b) either—

(i) that person applied for council tax reduction before moving in and no decision has been made or it was refused but a further application was made or treated as made within 4 weeks of the date on which the person moved into the new dwelling to occupy it as a home; or

(ii) the person notified the move to the new dwelling as a change of circumstances under regulation 69 (duty to notify changes of circumstances) before the move;

(c) the delay in moving into the dwelling was reasonable and—

(i) that delay was necessary in order to adapt the dwelling to meet the disablement needs of the person or any member of the person's family;

(ii) the move was delayed pending the outcome of an application—

(aa) under Part 8 of the 1992 Act M88 for a social fund payment;

(bb) to a local authority for a payment made in exercise of the power in section 20 of the Local Government in Scotland Act 2003 M89 (power to advance well-being) using funds provided by the Scottish Ministers from the Scottish Welfare Fund;

(cc) to a local authority in exercise of the power in section 1 of the Localism Act 2011 M90 (local authority's general power of competence) using funds provided by the Secretary of State, and in this sub-head local authority means a local authority within the meaning of section 8 of that Act;

(dd) to the Welsh Ministers, or to a person acting on their behalf, for a payment made in exercise of the power in section 60 of the Government of Wales Act 2006 M91 (promotion etc. of well-being),

to meet a need arising out of the move or in connection with setting up the home in the dwelling and either a member of the applicant's family is aged 5 or under or the applicant's applicable amount includes a premium under paragraph 7 (severe disability premium) or 9 (disabled child premium) of Schedule 1 (applicable amounts); or

(iii) the applicant became liable to make payments in respect of the dwelling while a patient or in residential accommodation,

the person is to be treated as occupying the dwelling as a home for any period not exceeding 4 weeks immediately prior to the date on which the person moved into the dwelling.

(9) Where a person is treated by virtue of paragraph (8) as occupying a dwelling as a home in respect of the period before moving in, the person's application for council tax reduction in respect of that dwelling is to be treated as having been made on the latest of—

(a) in the case of an application in respect of which a decision has not yet been made, the date that application is or is treated as made in accordance with regulation 65 (date on which an application is made);

(b) in the case of an application which was refused and a further application was or was treated as made in accordance with regulation 65 within 4 weeks of the date on which the person moved into the dwelling, the date on which the application was refused or was treated as made; or

(c) the date from which the person is treated as occupying the dwelling as a home by virtue of paragraph (8).

(10) Where a person to whom neither paragraph (6)(a) or (16)(c)(x) applies—

(a) formerly occupied a dwelling but left and remains absent from it through fear of violence in the dwelling, or by a person who was formerly a member of the family of the person; and

(b) has a liability to make payments in respect of that dwelling which is unavoidable,

the person is to be treated as occupying the dwelling as a home for a period not exceeding 4 reduction weeks.

(11) This paragraph applies to a person who enters residential accommodation—

(a) for the purpose of ascertaining whether the accommodation suits that person's needs;

(b) with the intention of returning to the dwelling which is normally occupied by the person as a home should the residential accommodation prove not to suit the person's needs; and

(c) while the part of the dwelling which is normally occupied by the person as a home is not let, or as the case may be, sublet.

(12) A person to whom paragraph (11) applies is to be treated as occupying the dwelling normally occupied as the person's home for a period not exceeding 13 weeks beginning from the first day the person enters residential accommodation, but a person is not to be treated as occupying that dwelling as a home if the total of all periods in residential accommodation exceeds 52 weeks.

(13) Subject to paragraph (17), a person is to be treated as occupying a dwelling as a home while that person is temporarily absent from the dwelling for a period not exceeding 13 weeks beginning from the first day of that absence from the home if—

(a) the person intends to return to occupy the dwelling as a home;

(b) the part of the dwelling normally occupied by the person has not been let or, as the case may be, sublet; and

(c) the period of absence is unlikely to exceed 13 weeks.

(14) This paragraph applies to a person who is—

(a) detained in custody pending sentence upon conviction or under a sentence imposed by a court, other than a person who is detained in hospital under the provisions of the Mental Health (Care and Treatment) (Scotland) Act 2003 M92 , the Criminal Procedure (Scotland) Act 1995 M93 , the Mental Health Act 1983 M94 or the Mental Health (Northern Ireland) Order 1986 M95 ; and

(b) on temporary release from a detention referred to in sub-paragraph (a) in accordance with rules made under the provisions of the Prisons (Scotland) Act 1989 M96 , the Prison Act 1952 M97 or the Prison Act (Northern Ireland) 1953 M98 .

(15) Where paragraph (14) applies to a person, for any day when the person is on temporary release—

(a) if the temporary release was immediately preceded by a period of temporary absence under paragraph (13) or (16), the person is to be treated as if continuing to be absent from the dwelling, despite any occupation of the dwelling;

(b) for the purposes of paragraph (16)(c)(i), the person is to be treated as if remaining in detention; and

(c) if the person does not fall within sub-paragraph (a), the person is to be treated as if not occupying a dwelling as a home despite any occupation of the dwelling.

(16) This paragraph applies to a person who is temporarily absent from the dwelling normally occupied by that person as a home and—

(a) that person intends to return to occupy the dwelling as a home;

(b) the part of the dwelling which is normally occupied by the person has not been let or, as the case may be, sublet;

(c) the person is—

(i) detained in custody on remand pending trial or, as a condition of bail, required to reside—

(aa) in a dwelling, other than the dwelling the person occupies as a home;

(bb) in premises approved under section 13 of the Offender Management Act 2007 M99 ; or

(cc) detained pending sentence upon conviction;

(ii) resident in a hospital or similar institution as a patient;

(iii) or any partner of the person or the person's dependant child is undergoing, in the United Kingdom or elsewhere, medical treatment, or medically approved convalescence, in accommodation other than residential accommodation;

(iv) following, in the United Kingdom or elsewhere, a training course;

(v) undertaking medically approved care of a person residing in the United Kingdom or elsewhere;

(vi) undertaking the care of a child whose parent or guardian is temporarily absent from the dwelling normally occupied by that parent or guardian for the purpose of receiving medically approved care or medical treatment;

(vii) in the United Kingdom or elsewhere, receiving medically approved care provided in accommodation other than residential accommodation;

(viii) a student to whom paragraph (3) or (6)(b) does not apply;

(ix) receiving care provided in residential accommodation other than a person to whom paragraph (11) applies; or

(x) a person to whom paragraph (6)(a) does not apply and who has left the dwelling occupied as the person's home through fear of violence in that dwelling or by a former member of the person's family; and

(d) the period of absence is unlikely to exceed 52 weeks or, in exceptional circumstances, is unlikely substantially to exceed that period.

(17) A person to whom paragraph (16) applies is to be treated as occupying the dwelling normally occupied as a home during any period of temporary absence, but the period during which the person is treated as occupying the dwelling must not exceed 52 weeks beginning from the first day of temporary absence.

Marginal Citations

M87 2007 c.21.

M88 Part 8 was amended by sections 70 and 71 of, and paragraphs 72 and 73 of Schedule 7 and paragraph 1 of Schedule 8 to, the Social Security Act 1998 (c.14) and section 54 of, paragraph 2 of Schedule 7 and paragraph 1 of Schedule 8 to, the Welfare Reform Act 2007 (c.5) and sections 71 and 72 of the Welfare Reform Act 2012 (c.5).

M89 2003 asp 1.

M90 2011 c.20.

M91 2006 c.32.

M92 2003 asp 13.

M93 1995 c.46.

M94 1983 c.20.

M95 S.I. 1986/595 (N.I. 4).

M96 1989 c.45.

M97 1952 c.52.

M98 1953 c.18.

M99 2007 c.21.

Remunerative work S

6.—(1) Subject to the following provisions of this regulation, a person is to be treated for the purposes of these Regulations as engaged in remunerative work if that person is engaged, or, where hours of work fluctuate, is engaged on average, for not less than 16 hours a week, in work for which payment is made or which is done in expectation of payment.

(2) Subject to paragraph (3), in determining the number of hours for which a person is engaged in work where that person's hours of work fluctuate, regard is to be had to the average of hours worked over—

(a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does no work, those periods but disregarding any other absences); and

(b) in any other case, the period of 5 weeks immediately prior to the date of application, or any other length of time as may, in the particular case, enable the person's weekly average hours of work to be determined more accurately.

(3) Where, for the purposes of paragraph (2)(a), a person's recognisable cycle of work at a school, other educational establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which that person does not work, those periods and any other periods not forming part of such holidays or vacations during which the person is not required to work are to be disregarded in establishing the average hours for which the person is engaged in work.

(4) Where no recognisable cycle has been established in respect of a person's work, regard must be had to the number of hours or, where those hours will fluctuate, the average of the hours which the person is expected to work in a week.

(5) A person is to be treated as engaged in remunerative work during any period for which the person is absent from work referred to in paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

(6) A person on income support, an income-based jobseeker's allowance or an income-related employment and support allowance for more than 3 days in any reduction week is to be treated as not being in remunerative work in that week.

(7) A person is not to be treated as engaged in remunerative work on any day on which the person is on maternity leave, paternity leave or adoption leave or is absent from work because the person is ill.

(8) A person is not to be treated as engaged in remunerative work on any day on which the person is engaged in an activity in respect of which—

(a) a sports award has been made, or is to be made, to the person; and

(b) no other payment is made or is expected to be made to the person.

PART 2 S Families

Entitlement of only one member of a family S

7.  The entitlement of one member of a family to council tax reduction in respect of a dwelling excludes entitlement to that reduction in respect of that dwelling for any other member of the family for the same period.

Couples: polygamous marriages S

8.  Where a person is a party to a polygamous marriage, no party to the marriage is to be taken to be a member of a couple for the purposes of these Regulations.

Applicant in receipt of income-related benefit S

9.  Where an applicant in receipt of an income-related benefit is a member of a family, the income and capital of any member of that family is to be treated as the income and capital of the applicant.

Responsibility for another person S

10.—(1) Subject to the following provisions of this regulation, a person is to be treated as responsible for a child or a young person who normally lives with that person.

(2) Where a child or young person spends equal amounts of time in different households, or where there is a question as to which household the child or young person is living in, the child or young person is to be treated for the purposes of paragraph (1) as normally living with—

(a) the person who is receiving child benefit in respect of the child or young person; or

(b) if there is no such person—

(i) where only one claim for child benefit has been made in respect of the child or young person, the person who made that claim; or

(ii) in any other case the person who has the primary responsibility for the child or young person.

(3) For the purposes of these Regulations a child or young person can be the responsibility of only one person in any reduction week and any person other than the one treated as responsible for the child or young person under this regulation is to be treated as not responsible for the child or young person.

Membership of a household S

11.—(1) Subject to paragraphs (2) and (3), the applicant and any partner of the applicant and, where the applicant or the applicant's partner is treated as responsible for a child or young person by virtue of regulation 10 (responsibility for another person), that child or young person and any child of that child or young person, are to be treated as members of the same household even if temporarily absent from that household.

(2) A child or young person is not to be treated as a member of the applicant's household where that child or young person is—

(a) boarded out with the applicant or any partner of the applicant under a relevant enactment or placed with the applicant or any partner of the applicant by a local authority under section 22C(5) and (6)(a) or (b) or section 23(2)(a) of the Children Act 1989 M100 or by a voluntary organisation under section 59(1)(a) of that Act M101 ;

(b) boarded out or placed with the applicant or any partner of the applicant prior to adoption; or

(c) placed for adoption with the applicant or any partner of the applicant in accordance with the Adoption and Children Act 2002 M102 or the Adoption Agencies (Scotland) Regulations 2009 M103 .

(3) Subject to paragraph (4), paragraph (1) does not apply to a child or young person who is not living with the applicant and the child or young person—

(a) is in the care of, or is being looked after by, a local authority under a relevant enactment;

(b) has been boarded out or placed with a person other than the applicant prior to adoption; or

(c) has been placed for adoption in accordance with the Adoption and Children Act 2002 or the Adoption Agencies (Scotland) Regulations 2009.

(4) A child or young person to whom paragraph (3)(a) applies is to be treated as being a member of the applicant's household in any reduction week where—

(a) that child or young person lives with the applicant for part or all of that reduction week; and

(b) the relevant authority considers that it is reasonable to do so taking into account the nature and frequency of that child's or young person's visits.

(5) In this regulation “relevant enactment” means the Social Work (Scotland) Act 1968 M104 , the Family Law Reform Act 1969 M105 , the Children and Young Persons Act 1969 M106 , the Children Act 1975 M107 , the Domestic Proceedings and Magistrates' Courts Act 1978 M108 , the Family Law Act 1986 M109 , the Children Act 1989 M110 , the Armed Forces Act 1991 M111 and the Children (Scotland) Act 1995 M112 .

Marginal Citations

M100 1989 c.41. In relation to England sections 22A to 22F were substituted for section 23 by section 8 of the Children and Young Persons Act 2008 (c.23). Section 23(2)(a) remains in force in relation to Wales and was amended by section 49 of the Children act 2004 (c.31) and paragraph 7 of Schedule 3 to the Children and Young Persons Act 2008 (c.23).

M101 Section 59(1)(a) was amended by paragraph 14 of Schedule 4 to the Care Standards Act 2000 (c.14), section 49 of the Children Act 2004 (c.31) and paragraph 2 of Schedule 1 and paragraph 23 of Schedule 3 to the Children and Young Persons Act 2008 (c.23)..

M102 2002 c.38.

M103 S.S.I. 2009/154, as amended by S.S.I. 2010/172 and 2011/211.

M104 1968 c.49.

M105 1969 c.46.

M106 1969 c.54.

M107 1975 c.72.

M108 1978 c.22.

M109 1986 c.55.

M110 1989 c.41.

M111 1991 c.62.

M112 1995 c.36.

PART 3 S Application of the Regulations

Application S

12.—(1) Subject to paragraph (2), these Regulations apply to a person who has attained the qualifying age for state pension credit.

(2) These Regulations do not apply to a person if that person, or any partner of that person, is a person on income support, an income-based jobseeker's allowance or an income-related employment and support allowance.

Prescribed years S

13.  The financial year commencing 1st April 2013 and each subsequent financial year are prescribed as the years for which these Regulations apply.

PART 4 S Entitlement to council tax reduction

Conditions of entitlement to council tax reduction S

14.—(1) A person who is liable to pay council tax under section 75 of the Act (“relevant person”) is entitled to council tax reduction in respect of a day if the conditions set out in paragraph (3) are satisfied and—

(a) each of the conditions set out in paragraphs (4) and (5) is satisfied; or

(b) the condition set out in paragraph (6) is satisfied.

(2) A relevant person is not entitled to council tax reduction in respect of any day before the day on which that person's entitlement to council tax reduction commences in accordance with regulation 58 (date on which entitlement begins);

(3) The conditions referred to in paragraph (1) are that the relevant person—

(a) is for the day liable to pay council tax in respect of a dwelling in which that person resides [F8 as their sole or main residence];

(b) is not a person to whom regulation 15 (persons not entitled to council tax reduction: absentees), regulation 16 (persons not entitled to council tax reduction: persons treated as not being in Great Britain) or 19 (persons not entitled to council tax reduction: persons subject to immigration control) applies; and

(c) makes an application for council tax reduction in accordance with Part 9 (applications).

(4) The condition referred to in paragraph (1)(a) is that there is an appropriate maximum council tax reduction in the case of the relevant person.

(5) The condition referred to in paragraph (1)(a) is that—

(a) the day falls within a week in respect of which—

(i) the relevant person has no income; or

(ii) the relevant person's income does not exceed the applicable amount; or

(b) neither paragraph (a)(i) or (ii) applies to the relevant person but amount A exceeds amount B where—

(i) amount A is the appropriate maximum council tax reduction in the relevant person's case; and

(ii) amount B is 2 6/7 per cent of the difference between the person's income in respect of the week in which the day falls and the applicable amount.

(6) The condition referred to in paragraph (1)(b) is that—

(a) no other resident of the dwelling is liable to pay rent to the relevant person in respect of the dwelling; and

(b) the relevant person is entitled to alternative maximum council tax reduction because of the income or aggregate incomes of one or more residents of the dwelling.

(7) For the purpose of paragraph (6) a resident of the dwelling other than the relevant person does not include a resident who—

(a) falls to be disregarded for the purposes of discount in accordance with Schedule 1 to the Act M113 ; or

(b) is a person described in regulation 57 (residents of a dwelling to whom regulation 14(6) does not apply).

(8) Subject to paragraph (9) below, where a relevant person is entitled to council tax reduction in respect of a day, the amount to which the person is entitled is—

(a) if paragraph (5)(a) applies, the amount which is the appropriate maximum council tax reduction in that person's case;

(b) if paragraph (5)(b) applies, the amount found by deducting amount B from amount A, where “amount A” and “amount B” have the meanings given by that paragraph; and

(c) if paragraph (6) applies, the amount which is the appropriate alternative maximum council tax reduction in that person's case.

(9) Where a relevant person is entitled to council tax reduction in respect of a day and paragraphs (5) and (6) apply, the amount to which the person is entitled is whichever is the greater of—

(a) the amount referred to in paragraph (8)(a) or, as the case may be, paragraph (8)(b); or

(b) the amount referred to in paragraph (8)(c).

Textual Amendments

F8 Words in reg. 14(3)(a) inserted (1.10.2013) by The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2013 (S.S.I. 2013/218), regs. 1, 10

Marginal Citations

M113 Schedule 1 was amended by paragraph 152 of Schedule 9 to the Powers of Criminal Courts (Sentencing) Act 2000 (c.6), paragraph 18 of schedule 3 to the Regulation of Care (Scotland) Act 2001 (asp 8), paragraph 152 of Schedule 1 to the National Health Service (Consequential Provisions) Act 2006 (c.43), paragraph 123 of Schedule 16, and Schedule 17, to the Armed Forces Act 2006 (c.52) and S.S.I. 2005/465.

Persons not entitled to council tax reduction: absentees S

15.—(1) Subject to paragraph (2), a person is not entitled to council tax reduction in respect of a day and a dwelling of which the person is a resident if the person is throughout that day absent from the dwelling.

(2) Paragraph (1) does not include a person whose absence from the dwelling is part of a period of temporary absence.

(3) In paragraph (2) a “period of temporary absence” means—

(a) a period of absence not exceeding 13 weeks, beginning with the first whole day on which a person resides in residential accommodation and for so long as—

(i) the person resides in that accommodation;

(ii) the part of the dwelling in which the person usually resides is not let or sub-let; and

(iii) that period of absence does not form part of a longer period of absence from the dwelling of more than 52 weeks, where the person has entered the accommodation for the purpose of ascertaining whether it suits the person's needs and with the intention of returning to the dwelling if it proves not to suit the person's needs;

(b) a period of absence not exceeding 13 weeks, beginning with the first whole day of absence from the dwelling and for so long as—

(i) the person intends to return to the dwelling;

(ii) the part of the dwelling in which the person usually resides is not let or sub-let; and

(iii) that period is unlikely to exceed 13 weeks; or

(c) a period of absence not exceeding 52 weeks, beginning with the first whole day of that absence and for so long as—

(i) the person intends to return to the dwelling;

(ii) the part of the dwelling in which the person usually resides is not let or sub-let;

(iii) the person is a person to whom paragraph (4) applies; and

(iv) the period of absence is unlikely to exceed 52 weeks or, in exceptional circumstances, is unlikely substantially to exceed 52 weeks.

(4) This paragraph applies to a person who is—

(a) (i) detained in custody on remand pending trial or required, as a condition of bail, to reside—

(aa) in a dwelling, other than the dwelling referred to in paragraph (1); or

(bb) in premises approved under section 13 of the Offender Management Act 2007 M114 ; or

(ii) detained in custody pending sentence upon conviction;

(b) resident in a hospital or similar institution as a patient;

(c) undergoing, or who has a partner or dependent child who is undergoing, in the United Kingdom or elsewhere, medical treatment or medically approved convalescence in accommodation other than residential accommodation;

(d) following, in the United Kingdom or elsewhere, a training course;

(e) undertaking medically approved care of a person residing in the United Kingdom or elsewhere;

(f) undertaking the care of a child whose parent or guardian is temporarily absent from the dwelling normally occupied by that parent or guardian for the purpose of receiving medically approved care or medical treatment;

(g) receiving medically approved care in the United Kingdom or elsewhere, provided in accommodation other than residential accommodation;

(h) a student;

(i) receiving care provided in residential accommodation other than a person to whom paragraph (3)(a) applies; or

(j) a person who left the dwelling the person resides in through fear of violence in that dwelling or by a former member of the person's family.

(5) This paragraph applies to a person who is—

(a) detained in custody pending sentence upon conviction or under a sentence imposed by a court (other than a person who is detained in hospital under the provisions of the Mental Health Act 1983 M115 , the Criminal Procedure (Scotland) Act 1995 M116 or the Mental Health (Care and Treatment) (Scotland) Act 2003 M117 ); or

(b) on temporary release from detention in accordance with Rules made under the provisions of the Prisons (Scotland) Act 1989 M118 or the Prison Act 1952 M119 .

(6) Where paragraph (5) applies to a person, for any day when the person is on temporary release—

(a) if that temporary release was immediately preceded by a period of temporary absence under paragraph (3)(b) or (c)—

(i) for the purposes of paragraph (1) the person is to be treated as if still absent from the dwelling; and

(ii) for the purposes of paragraph (4)(a), the person is to be treated as if still in detention;

(b) if sub-paragraph (a) does not apply the person is to be treated as absent from the dwelling for the purpose of paragraph (1).

Marginal Citations

M114 2007 c.21.

M115 1983 c.20.

M116 1995 c.46.

M117 2003 asp 13.

M118 1989 c.45.

M119 1952 c.52.

Persons not entitled to council tax reduction: persons treated as not being in Great Britain S

16.—(1) Subject to paragraph (5), a person is not entitled to council tax reduction in respect of a day and a dwelling of which the person is a resident if the person is throughout that day treated as not being in Great Britain in accordance with this regulation.

(2) Subject to paragraph (5), a person is to be treated as not being in Great Britain if that person is not habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland.

(3) A person is not to be treated as habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland unless the person has a right to reside in one of those places.

(4) For the purposes of paragraph (3), a right to reside does not include a right which exists by virtue of, or in accordance with,—

(a) regulation 13 of the 2006 Regulations M120 ; or

(b) Article 6 of Directive 2004/38/EC of the European Parliament and of the Council on the rights of citizens of the Union and their family members to move and reside within the territory of the Member States M121

(5) A person is not to be treated as not being in Great Britain if that person is—

(a) a qualified person for the purposes of regulation 6 of the 2006 Regulations M122 as a worker or a self-employed person;

(b) a family member of a person referred to in paragraph (a) within the meaning of regulation 7 of the 2006 Regulations;

(c) a person who has a right to reside permanently in the United Kingdom by virtue of regulation 15(1)(c), (d) or (e) of the 2006 Regulations;

(d) a refugee within the definition in Article 1 of the Convention relating to the Status of Refugees done at Geneva on 28th July 1951 M123 , as extended by Article 1(2) of the Protocol relating to the Status of Refugees done at New York on 31st January 1967 M124 ;

(e) a person granted limited leave to enter or remain in the United Kingdom outside the provisions of the rules made under section 3(2) of the Immigration Act 1971 M125 on the rejection of their claim for asylum;

(f) a person who has humanitarian protection granted under the rules referred to in sub-paragraph (e); or

(g) a person who is not a person subject to immigration control within the meaning of section 115(9) of the Immigration and Asylum Act 1999 M126 and who is in the United Kingdom as a result of that person's deportation, expulsion or other removal by compulsion of law from another country to the United Kingdom.

(6) In this regulation “the 2006 Regulations” means the Immigration (European Economic Area) Regulations 2006 M127 .

Marginal Citations

M120 Regulation 13 was amended by S.I. 2012/1547.

M121 OJ L 158, 30.4.2004, p.77.

M122 Regulation 6 was amended by S.I. 2011/544.

M123 Cmnd 3906

M124 Cmnd 9171.

M125 1971 c.77.

M126 1999 c.33.

M127 S.I. 2006/1003.

Persons treated as being in Great Britain S

17.—(1) A person to whom paragraph (2) or (3) applies is to be treated as being in Great Britain, unless the person is to be treated as not in Great Britain under regulation 16.

(2) This paragraph applies to a person who is outside Great Britain in that person's capacity as—

(a) an aircraft worker;

(b) a continental shelf worker who is in a designated area or a prescribed area;

(c) a Crown servant;

(d) a mariner; or

(e) a member of Her Majesty's forces.

(3) This paragraph applies to a person if—

(a) that person is a member of a couple and the other member of the couple is a person to whom paragraph (2) applies; and

(b) the person is outside Great Britain by reason only of the fact that the person is living with the other member of the couple.

(4) In this regulation—

(a) “aircraft worker” means a person who is employed under a contract of service as a pilot, commander, navigator or other member of the crew of any aircraft or in any other capacity on board any aircraft where—

(i) the employment in that other capacity is for the purposes of the aircraft or its crew or of any passengers or cargo or mail carried on that aircraft; and

(ii) the contract is entered into in the United Kingdom with a view to its performance (in whole or in part) while the aircraft is in flight;

(b) “continental shelf worker” means a person who is employed, whether under a contract of service or not, in a designated area or a prescribed area in connection with any activity mentioned in section 11(2) of Petroleum Act 1998 M128 ;

(c) “Crown servant” means a person employed by or under the Crown;

(d) “designated area” means any area which may from time to time be designated by Order in Council under the Continental Shelf Act 1964 M129 as an area within which the rights of the United Kingdom with respect to the seabed and subsoil and their natural resources may be exercised;

(e) “mariner” means a person who is employed under a contract of service as a master or member of the crew of any ship or vessel or in any other capacity on board any ship or vessel where—

(i) the employment in that other capacity is for the purposes of that ship or vessel or its crew or any passengers or cargo or mails carried by the ship or vessel; and

(ii) the contract is entered into in the United Kingdom with a view to its performance (in whole or in part) while the ship or vessel is on its voyage; and

(f) “prescribed area” means any area over which Norway or any member State of the European Union (other than the United Kingdom) exercises sovereign rights for the purpose of exploring the seabed and subsoil and exploiting their natural resources, being an area outside the territorial seas of Norway or that member State, or any other area which is from time to time specified under section 10(8) of the Petroleum Act 1998.

Marginal Citations

M128 1998 c.17.

M129 1964 c.29.

Temporary absence from Great Britain S

18.—(1) For the purposes of determining whether a person is in Great Britain, a person's temporary absence from Great Britain is disregarded—

(a) for the first month of the temporary absence if paragraph (2) applies; or

(b) for the first 6 months of the temporary absence if paragraph (3) applies.

(2) This paragraph applies where—

(a) the person was entitled to council tax reduction immediately before the beginning of the period of temporary absence; and

(b) the person has not been absent on more than 2 occasions in the previous 52 weeks, starting from the first day of the current period of temporary absence.

(3) This paragraph applies where—

(a) the person was entitled to council tax reduction immediately before the beginning of the period of temporary absence; and

(b) the absence is solely in connection with—

(i) the treatment of the person for an illness or physical or mental disability by, or under the supervision of, a person appropriately qualified to carry out that treatment;

(ii) the person accompanying a person described in paragraph (5) for the treatment of the person so described for an illness or physical or mental disability by, or under the supervision of, a person appropriately qualified to carry out that treatment; or

(iii) the person undergoing medically approved convalescence or care as a result of treatment for an illness or physical or mental disability, where the person had that illness or disability before leaving Great Britain.

(4) The period in paragraph (1)(a) may be extended by up to a one month if—

(a) the temporary absence is in connection with the death of—

(i) a person described in paragraph (5); or

(ii) a close relative of the person or a close relative of a person described in paragraph (5); and

(b) the relevant authority is satisfied that it would be unreasonable to expect the person to return to Great Britain within the first month.

(5) A person described by this paragraph is—

(a) where the person is a member of a couple, the other member of the couple; or

(b) a child or young person for whom the person, or where the person is a member of a couple, the other member of the couple, is responsible.

(6) In this regulation “appropriately qualified” means qualified to provide medical treatment or physiotherapy or a form of treatment which is similar to, or related to, either of those forms of treatment.

Persons not entitled to council tax reduction: persons subject to immigration control S

19.  A person is not entitled to council tax reduction in respect of a day and a dwelling of which the person is a resident if the person is throughout that day a person subject to immigration control within the meaning given in section 115(9) of the Immigration and Asylum Act 1999.

PART 5 S Applicable amount

Applicable amount S

20.  An applicant's applicable amount is the aggregate of each of the following amounts which apply in the applicant's case—

(a) an amount in respect of the applicant's personal allowance, determined in accordance with paragraph 2 of Schedule 1;

(b) an amount in respect of any child or young person who is a member of the applicant's family, determined in accordance with paragraph 3 of Schedule 1 (personal allowances);

(c) if the applicant is a member of a family of which at least one member is a child or young person, the amount specified in paragraph 4 of Schedule 1 (family premium); and

(d) the amount of any premium which may be applicable to the applicant, determined in accordance with Parts 3 and 4 of Schedule 1 (disability premiums).

PART 6 S Income and capital

CHAPTER 1 S General

Calculation of income and capital of members of applicant's family and of a polygamous marriage S

21.—(1) The income and capital of an applicant's partner is to be treated as income and capital of the applicant and is to be calculated or estimated in accordance with the provisions of this Part in the same way as the applicant's income and capital is calculated or estimated and any reference to the “ applicant” is, except where the context otherwise requires, to be construed for the purposes of this Part as if it included a reference to the applicant's partner.

(2) Where an applicant or the partner of an applicant is married polygamously to two or more members of their household—

(a) the applicant is to be treated as possessing capital and income belonging to each of those members; and

(b) the income and capital of each of those members is to be calculated in accordance with the provisions of this Part as if the member was the applicant.

(3) The income and capital of a child or young person is not to be treated as the income and capital of the applicant.

Circumstances in which capital and income of non-dependant is to be treated as applicant's S

22.—(1) Where it appears to the relevant authority that a non-dependant and the applicant have entered into arrangements in order to take advantage of the council tax reduction scheme set out in these Regulations and the non-dependant has more capital and income than the applicant, the authority must, except where the applicant is on a guarantee credit, treat the applicant as possessing the capital and income of the non-dependant and must disregard any capital and income which the applicant does possess.

(2) Where an applicant is treated as possessing the capital and income of a non-dependant under paragraph (1) the capital and income of that non-dependant is to be calculated or estimated in accordance with the provisions of this Part as if it was the capital and income of the applicant and any reference to the “applicant” is, except where the context otherwise requires, to be construed for the purposes of this Part as if it was a reference to the non-dependant.

CHAPTER 2 S Income and capital

Calculation of income and capital S

23.  The income and capital of the applicant is to be calculated in accordance with this Chapter.

Applicant in receipt of guarantee credit S

24.  In the case of an applicant who is in receipt, or whose partner is in receipt, of a guarantee credit, the whole of the applicant's capital and income is to be disregarded.

Calculation of income in savings credit only cases S

25.—(1) Where the applicant, or any partner of the applicant, has an award of state pension credit comprising only the savings credit, subject to the following provisions of this regulation, the calculation or estimate of the applicant's or as the case may be, the applicant's partner's, income and capital by the Secretary of State for the purpose of determining that award is to be used to determine the income and capital of the applicant.

(2) The amount of the net income calculated or estimated by the Secretary of State is to be modified only in so far as necessary to take into account—

(a) the amount of any savings credit payable;

(b) in respect of any dependent children of the applicant, child care charges taken into account under regulation 28(1)(c) (calculation of income on a weekly basis);

(c) the higher amount disregarded under these Regulations in respect of—

(i) lone parent's earnings; or

(ii) a payment of aliment or maintenance, whether under a court order or not, which is made or due to be made by—

(aa) the applicant's former partner or the applicant's partner's former partner; or

(bb) the parent of a child or young person where that child or young person is a member of the applicant's family, except where that parent is the applicant or the applicant's partner;

(d) any amount to be disregarded by virtue of paragraph 10(1) of Schedule 2 (sums to be disregarded in the calculation of earnings);

(e) the income and capital of any partner of the applicant who is treated as a member of the applicant's household under regulation 11 (membership of a household) to the extent that it is not taken into account in determining the net income of the person claiming state pension credit;

(f) regulation 22 (circumstances in which capital and income of non-dependant is to be treated as applicant's) if the relevant authority determines that this provision applies in the applicant's case; or

(g) any amount to be disregarded by virtue of paragraph 6 of Schedule 2 (sums to be disregarded in the calculation of earnings).

(3) Regulations 27 (meaning of “income”) to 46 (capital jointly held) do not apply to the amount of the net income to be taken into account under paragraph (1), but do apply (so far as relevant) for the purpose of determining any modifications which fall to be made to that amount under paragraph (2).

(4) Subject to paragraph (5), if the Secretary of State determines that the applicant's capital is more than £16,000 regulation 40 (capital limit) applies.

(5) If paragraph (6) applies, the applicant's capital is to be calculated in accordance with regulations 40 (capital limit) to 46 (capital jointly held).

(6) This paragraph applies if—

(a) the determination of the Secretary of State referred to in paragraph (1) is that the applicant's capital is £16,000 or less;

(b) subsequent to that determination the applicant's capital rises to more than £16,000; and

(c) the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act 2002 M130 .

Marginal Citations

M130 2002 c.16. Sections 6 and 9 were amended by paragraph 140 of Schedule 24 to the Civil Partnership Act 2004 (c.33). Section 9 was also amended by section 105 of the Pensions Act 2008 (c.30).

Calculation of income and capital where state pension credit is not payable S

26.  Where neither regulation 24 (applicant in receipt of guarantee credit) nor 25 (calculation of applicant's income in savings credit only cases) applies in the applicant's case, the income and capital of the applicant is to be calculated or estimated in accordance with regulations 27 (meaning of “income”) to 46 (capital jointly held).

Meaning of “income” S

27.—(1) For the purposes of these Regulations “ income” means income of any of the following descriptions

(a) earnings;

(b) working tax credit;

(c) retirement pension income;

(d) income from annuity contracts (other than retirement pension income);

(e) a war disablement pension, war widow's pension or war widower's pension;

(f) a foreign war disablement pension, foreign war widow's pension or foreign widower's pension within the meaning of section 17 of the State Pension Credit Act 2002 M131 (other interpretation provisions);

(g) a guaranteed income payment;

(h) a payment made under article 29(1)(c) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 M132 in any case where article 31(2)(c) of that Order applies;

(i) income from capital other than capital disregarded under Part 1 of Schedule 4;

(j) social security benefits other than—

(i) retirement pension income,

(ii) disability living allowance;

[F9 (iia) armed forces independence payment;]

(iii) personal independence payment;

(iv) attendance allowance payable under section 64 of the 1992 Act M133 ;

(v) an increase of disablement pension under section 104 or 105 of the 1992 Act;

F10 (vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(vii) child benefit;

(viii) any guardian's allowance payable under section 77 of the 1992 Act M134 ;

(ix) any increase for a dependant, other than the applicant's partner, payable in accordance with Part 4 of the 1992 Act;

(x) any social fund payment made under Part 8 of the 1992 Act;

(xi) any crisis payment made for the purpose of meeting an immediate short term need or a payment made for the purpose of meeting a need for community care—

(aa) by a local authority, in exercise of the power in section 20 of the Local Government in Scotland Act 2003 M135 (power to advance well-being) and using funds provided by the Scottish Ministers from the Scottish Welfare Fund;

(bb) by a local authority in exercise of the power in section 1 of the Localism Act 2011 M136 (local authority's general power of competence) and using funds provided by the Secretary of State, and in this sub-paragraph local authority means a local authority within the meaning of section 8 of that Act; or

(cc) by, or on behalf of, the Welsh Ministers in exercise of the power in section 60 of the Government of Wales Act 2006 M137 (promotion etc. of well-being);

(xii) Christmas bonus payable under Part 10 of the 1992 Act;

(xiii) housing benefit;

(xiv) council tax benefit;

(xv) bereavement payment under section 36 of the 1992 M138 Act;

(xvi) statutory sick pay;

(xvii) statutory maternity pay;

(xviii) ordinary statutory paternity pay or additional statutory paternity pay;

(xix) statutory adoption pay; and

(xx) any benefit similar to those mentioned in the preceding provisions of this paragraph payable under legislation having effect in Northern Ireland;

(k) all foreign social security benefits which are similar to the social security benefits described above;

(l) a payment made under—

(i) article 30 of the 2006 Order in any case where article 30(1)(b) of that Order applies; or

(ii) article 12(8) of the 2006 Order M139 in any case where article 12(8)(b) of that Order applies;

(m) a pension paid to victims of National Socialist persecution under any special provision made by the law of the Federal Republic of Germany, or any part of it, or of the Republic of Austria;

(n) payments under a scheme made under the Pneumoconiosis etc. (Worker's Compensation) Act 1979 M140 ;

(o) payments made towards the maintenance of the applicant by the applicant's spouse, civil partner, former spouse or former civil partner or towards the maintenance of the applicant's partner by the applicant's partner's spouse, civil partner, former spouse or former civil partner, including payments made—

(i) under a court order;

(ii) under an agreement for aliment or maintenance; or

(iii) voluntarily;

(p) payments due from any person in respect of board and lodging accommodation provided by the applicant;

(q) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

(r) any payment in respect of any—

(i) book registered under the Public Lending Right Scheme 1982 M141 ; or

(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982;

(s) any payment, other than a payment ordered by a court or made in settlement of a claim, made by or on behalf of a former employer of a person on account of the early retirement of that person on grounds of ill-health or disability;

(t) any sum payable by way of pension out of money provided under the Civil List Act 1837 M142 , the Civil List Act 1937 M143 , the Civil List Act 1952 M144 , the Civil List Act 1972 M145 or the Civil List Act 1975 M146 ;

(u) any income in lieu of that specified in sub-paragraphs (a) to (r);

(v) any payment of rent made to an applicant who—

[F11 (i) owns, owns the freehold or leasehold interest in or is a tenant of the property in respect of which the rent is paid;]

(ii) occupies part of the property; and

(iii) has an agreement with another person allowing that other person to occupy the property on payment of rent;

(w) any payment made at regular intervals under an equity release scheme; and

(x) PPF periodic payments within the meaning of section 17 of the State Pension Credit Act 2002 M147 .

(2) For the purposes of these Regulations and subject to regulations 31(11)(b) (calculation of weekly income: capital disregards) and 41(2) (calculation of capital: capital to be disregarded), an applicant's capital is to be treated as if it was a weekly income of—

(a) £1 for each £500 in excess of £10,000; and

(b) £1 for any part of that excess which is not a complete £500.

(3) Where the payment of any social security benefit referred to paragraph (1) is subject to any deduction (other than an adjustment specified in paragraph (5)) the amount to be taken into account under paragraph (1) is the amount before the deduction is made.

(4) Where an award of any working tax credit or child tax credit is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit made in a previous tax year the amount to be taken into account under paragraph (1) is the amount of working tax credit or child tax credit awarded less the amount of that deduction.

(5) The adjustments specified in this paragraph are those made in accordance with—

(a) the Social Security (Overlapping Benefits) Regulations 1979 M148 ;

(b) the Social Security (Hospital In-Patients) Regulations 2005 M149 ;

(c) section 30DD or section 30E of the 1992 Act M150 (reductions in incapacity benefit in respect of pensions and councillor's allowances); or

(d) section 3 of the Welfare Reform Act 2007 M151 (deductions from contributory employment and support allowance in respect of pensions and councillor's allowances) and regulations made under it.

(6) In this regulation “equity release scheme” means a loan—

(a) made between a person (“the lender”) and the applicant;

(b) by means of which a sum of money is advanced by the lender to the applicant by way of payments at regular intervals; and

(c) which is secured on a dwelling in which the applicant owns an interest and occupies as a home.

Textual Amendments

F9 Reg. 27(1)(j)(iia) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(3)

F10 Reg. 27(1)(j)(vi) omitted (1.10.2013) by virtue of The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2013 (S.S.I. 2013/218), regs. 1, 11

F11 Reg. 27(1)(v)(i) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 5

Marginal Citations

M131 Section 17 was amended by paragraph 263 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c.1) and paragraph 142 of Schedule 24 and paragraph 1 of Schedule 30 to the Civil Partnership Act 2004 (c.33).

M132 S.I. 2011/517.

M133 Section 64 was amended by section 66 of the Welfare Reform and Pensions Act 1999 (c.30).

M134 Section 77 was amended by paragraph 1 of Schedule 6 to the Tax Credits Act 2002 (c.21), paragraph 4 of Schedule 1 to the Child Benefit Act 2005 (c.6) and paragraph 34 of Schedule 24 to the Civil Partnership Act 2004 (c.33).

M135 2003 asp 1.

M136 2011 c.20.

M137 2006 c.32.

M138 Section 36 was amended by section 54 of the Welfare Reform and Pensions Act 1999 (c.30) and paragraph 16 of Schedule 24 to the Civil Partnership Act 2004 (c.33).

M139 Article 12 was amended by S.I. 2007/909 and 2012/359.

M140 1979 c.41.

M141 The Scheme is set out in the Appendix to S.I. 1982/719. It has been amended by S.I. 1982/719, 1983/480 and 1688, 1984/1847, 1985/1581, 1986/2001 and 2103, 1987/1908, 1988/2070, 1989/2188, 1990/2360, 1991/2618, 1992/3044 and 3049, 1996/1338 and 3237, 1997/1576, 1999/420, 1042 and 3304, 2000/3319, 2001/3984, 2002/3123 and 3135, 2003/3045, 2004/1258 and 3218, 2005/1519 and 3351, 2006/3294, 2009/3259, 2011/54 and 2012/63.

M142 1837 c.2.

M143 1937 c.32.

M144 1952 c.37.

M145 1972 c.7.

M146 1975 c.82.

M147 Section 17 was relevantly amended by S.I. 2006/343.

M148 S.I. 1979/597.

M149 S.I. 2005/3360.

M150 Section 30DD was inserted by section 63 of the Welfare Reform and Pensions Act 1999 (c.30) and amended by S.I. 2006/343 and 745. Section 30E was inserted by section 3 of the Social Security (Incapacity for Work) Act 1994 (c.18).

M151 2007 c.5.

Calculation of income on a weekly basis S

28.—(1) For the purposes of regulation 14(5) (conditions of entitlement to council tax reduction) the income of an applicant is to be calculated on a weekly basis by—

(a) calculating or estimating the amount which is likely to be the applicant's average weekly income in accordance with this Part;

(b) adding to that amount the weekly income calculated under regulation 27(2) (meaning of “income”: calculation of tariff income from capital); and

(c) then deducting any relevant child care charges to which regulation 29 (treatment of child care charges) applies from any earnings which form part of the average weekly income or, in a case where the conditions in paragraph (2) are met, from those earnings plus whichever credit specified in paragraph (2)(b) is appropriate, up to a maximum deduction in respect of the applicant's family of whichever of the sums specified in paragraph (3) applies in the applicant's case.

(2) The conditions referred to in paragraph (1)(c) are that—

(a) the applicant's earnings which form part of the applicant's average weekly income are less than the lower of the relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies; and

(b) the applicant or, if the applicant is a member of a couple, either of them is in receipt of working tax credit or child tax credit.

(3) The maximum deduction to which paragraph (1)(c) refers is—

(a) where the applicant's family includes only one child in respect of whom relevant child care charges are paid, £175 per week; and

(b) where the applicant's family includes more than one child in respect of whom relevant child care charges are paid, £300 per week.

Treatment of child care charges S

29.—(1) This regulation applies where an applicant is incurring relevant child care charges and—

(a) is a lone parent and is engaged in remunerative work;

(b) is a member of a couple where both are engaged in remunerative work; or

(c) is a member of a couple where one member is engaged in remunerative work and the other is—

(i) incapacitated as described in paragraph (11);

(ii) a patient; or

(iii) in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).

(2) For the purposes of paragraph (1) and subject to paragraph (4), a person to whom paragraph (3) applies is to be treated as engaged in remunerative work for a period not exceeding 28 weeks during which the person is—

(a) paid statutory sick pay;

(b) paid short-term incapacity benefit at the lower rate under section 30A of the 1992 Act M152 ;

(c) paid an employment and support allowance;

(d) paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support Regulations M153 ; or

(e) credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975 M154 .

(3) This paragraph applies to a person who was engaged in remunerative work immediately before, as the case may be—

(a) the first day of the period in respect of which the person was first paid statutory sick pay, short-term incapacity benefit, an employment and support allowance or income support on the grounds of incapacity for work; or

(b) the first day of the period in respect of which earnings are credited.

(4) In a case to which paragraph (2)(d) or (e) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

(5) Relevant child care charges are the charges for care referred to in paragraphs (6) and (7) and they must be calculated on a weekly basis in accordance with paragraph (10).

(6) The charges referred to in paragraph (5) are charges for care which is provided—

(a) in the case of any child of the applicant's family who is not disabled, in respect of the period beginning on that child's date of birth and ending on the day preceding the first Monday in September following that child's fifteenth birthday; or

(b) in the case of any child of the applicant's family who is disabled, in respect of the period beginning on that child's date of birth and ending on the day preceding the first Monday in September following their sixteenth birthday.

(7) The charges referred to in paragraph (5) are charges for care which is provided by one or more of the care providers listed in paragraph (8) and not paid—

(a) in respect of the child's compulsory education;

(b) by an applicant to a partner or by a partner to an applicant in respect of any child for whom either or any of them is responsible in accordance with regulation 10 (responsibility for another person); or

(c) in respect of care provided by a relative of the child wholly or mainly in the child's home.

(8) The care to which paragraph (7) refers may be provided—

(a) out of school hours, by a school on school premises or by a local authority—

(i) for a child who is not disabled, in respect of the period beginning on the child's eighth birthday and ending on the day preceding the first Monday in September following the child's fifteenth birthday; or

(ii) for a child who is disabled, in respect of the period beginning on the child's eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

(b) by a child care provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999 M155 ;

(c) by persons registered under Part 2 of the Children and Families (Wales) Measure 2010 M156 ;

(d) by a person who is excepted from registration under Part 2 of the Children and Families (Wales) Measure 2010 because the child care the person provides is in a school or establishment referred to in article 11, 12 or 14 of the Child Minding and Day Care Exceptions (Wales) Order 2010 M157 ;

(e) by—

(i) persons registered under section 59(1) of the Public Services Reform (Scotland) Act 2010 M158 ; or

(ii) local authorities registered under section 83(1) of that Act, where the care provided is child minding or day care of children within the meaning of that Act;

(f) by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002 M159 ;

(g) by a person who is registered under Chapter 2 or 3 of Part 3 of the Childcare Act 2006 M160 ;

(h) by any of the schools mentioned in section 34(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 2 of Part 3 of that Act does not apply by virtue of that sub-section;

(i) by any of the schools mentioned in section 53(2) of the Childcare Act 2006 M161 in circumstances where the requirement to register under Chapter 3 of Part 3 of that Act does not apply by virtue of that sub-section;

(j) by any of the establishments mentioned in section 18(5) of the Childcare Act 2006 M162 in circumstances where the care is not included in the meaning of “childcare” for the purposes of Parts 1 and 3 of that Act by virtue of that subsection;

(k) by a foster carer or kinship carer approved under the Looked After Children (Scotland) Regulations 2009 M163 in relation to a child other than a child who has been placed with that carer—

(i) by virtue of a requirement of the children's hearing under section 70(3)(a) of the Children (Scotland) Act 1995 M164 ;

(ii) by a local authority exercising the right to determine the residence of a child in respect of whom a permanence order has been granted under section 81 of the Adoption and Children (Scotland) Act 2007 M165 ; or

(iii) in accordance with the Looked After Children (Scotland) Regulations 2009;

(l) by a foster parent under the Fostering Services (England) Regulations 2011 M166 or the Fostering Services (Wales) Regulations 2003 M167 in relation to a child other than one whom the foster parent is fostering;

(m) by a carer under the Health and Social Care Act 2008 (Regulated Activities) Regulations 2010 M168 or the Domiciliary Care Agencies (Wales) Regulations 2004 M169 ; or

(n) by a person who is not a relative of the child wholly or mainly in the child's home.

(9) In paragraphs (6) and (8)(a) “the first Monday in September” means the Monday which first occurs in the month of September in any year.

(10) Relevant child care charges must be estimated over a period, not exceeding a year, that is appropriate to allow the average weekly charge to be estimated accurately having regard to information about the amount of that charge provided by the person providing the care.

(11) For the purposes of paragraph (1)(c), the other member of a couple is incapacitated where—

(a) that other member is aged 80 or more; or

(b) that other member is aged less than 80 and—

(i) an additional condition specified in paragraph 10 of Schedule 1 to the Council Tax Reduction (Scotland) Regulations 2012 (additional condition for the disability premium) is treated as applying in that other member's case; and

(ii) that other member satisfies that additional condition or would but for the other member being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the 1992 Act M170 ;

(c) had the applicant's applicable amount fallen to be calculated under the Council Tax Reduction Regulations it would include the support component or the work-related activity component on account of the other member having limited capability for work but for that other member being treated as not having limited capability for work by virtue of a determination made in accordance with the Employment and Support Allowance Regulations;

(d) the applicant is, or is treated as, incapable of work and has been incapable, or treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the 1992 Act M171 (incapacity for work) for a continuous period of not less than 196 days, and for this purpose any two or more separate periods separated by a break of not more than 56 days are to be treated as one continuous period;

(e) the applicant is, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations for a continuous period of not less than 196 days and for this purpose any two or more separate periods separated by a break of not more than 84 days are to be treated as one continuous period;

(f) there is payable in respect of the other member one or more of the following pensions or allowances—

(i) long-term incapacity benefit or short-term incapacity benefit at the higher rate under Schedule 4 to the 1992 Act M172 ;

(ii) attendance allowance under section 64 of the 1992 Act M173 ;

(iii) severe disablement allowance under section 68 of the 1992 Act M174 ;

(iv) disability living allowance;

[F12 (iva) armed forces independence payment;]

(v) personal independence payment;

(vi) an increase of disablement pension under section 104 of the 1992 Act;

(vii) a pension increase paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv) or (vi) above; or

(viii) main phase employment and support allowance;

(g) a pension or allowance to which sub-paragraph (f)(ii), (iv), [F13 (v),] (vi) or (vii) refers was payable on account of the other member's incapacity but has ceased to be payable in consequence of the other member becoming a patient within the meaning of Schedule 1 (applicable amount);

(h) sub-paragraph (f) or (g) would apply to the other member if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or

(i) the other member has an invalid carriage or other vehicle provided under section 46 of the National Health Service (Scotland) Act 1978 M175 , paragraph 9(1) of Schedule 1 to the National Health Service Act 2006 M176 or article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972 M177 .

(12) Where paragraph (11)(d) applies and the applicant ceases to be, or to be treated as, incapable of work but within a period of 56 days or less of that cessation the applicant is, or is treated as, incapable of work, paragraph 11(d) applies from the time the applicant is again, or is again treated as, incapable of work for so long as the applicant is, or is treated as, incapable of work.

(13) Where paragraph (11)(e) applies and the applicant ceases to have, or to be treated as having, limited capability for work but within a period of 84 days or less of that cessation the applicant has, or is treated as having, limited capability for work, paragraph 11(e) applies from the time the applicant has again, or is again treated as having, limited capability for work for so long as that situation continues.

(14) For the purposes of paragraphs (6) and (8)(a), a person is disabled if the person is a person—

(a) in respect of whom disability living allowance or personal independence payment is payable, or has ceased to be payable solely because the person is a patient[F14 , or in respect of whom armed forces independence payment is payable];

(b) who has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a local authority in Scotland or is registered as blind in a register compiled under section 29 of the National Assistance Act 1948 (welfare services) M178 ; or

(c) who ceased to be registered as blind in a register referred to in sub-paragraph (b) within the period beginning 28 weeks before the first Monday in September following the person's fifteenth birthday and ending on the day preceding the person's sixteenth birthday.

(15) For the purposes of paragraph (1) a person on maternity leave, paternity leave or adoption leave is to be treated as if engaged in remunerative work for the period specified in paragraph (16) (“the relevant period”) provided that—

(a) in the week before the period of maternity leave, paternity leave or adoption leave began the person was in remunerative work;

(b) the person is incurring relevant child care charges; and

(c) the person is entitled to statutory maternity pay, ordinary statutory paternity pay, additional statutory paternity pay, statutory adoption pay or maternity allowance under section 35 of the 1992 Act M179 ;

(16) For the purposes of paragraph (15) the relevant period begins on the day on which the person's maternity leave, paternity leave or adoption leave commences and ends on the earliest of—

(a) the date that leave ends;

(b) if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance, statutory maternity pay, ordinary statutory paternity pay, additional statutory paternity pay or statutory adoption pay ends, the date that entitlement ends; or

(c) if a child care element of working tax credit is in payment on the date that entitlement to maternity allowance, statutory maternity pay, ordinary statutory paternity pay, additional statutory paternity pay or statutory adoption pay ends, the date that entitlement to the child care element of the working tax credit ends.

(17) In this regulation—

(a) “child care element of working tax credit” means the element of working tax credit prescribed under section 12 of the Tax Credits Act 2002 (child care element) M180 ; and

(b) “invalid carriage or other vehicle” means a vehicle propelled by a petrol engine or by electric power supplied for use on the road and to be controlled by the occupant.

Textual Amendments

F12 Reg. 29(11)(f)(iva) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(4)(a)

F13 Word in reg. 29(11)(g) inserted (1.10.2013) by The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2013 (S.S.I. 2013/218), regs. 1, 12

F14 Words in reg. 29(14)(a) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(4)(b)

Marginal Citations

M152 Sections 30A was inserted by section 1 of the Social Security (Incapacity for Work) Act 1994 (c.18) and was amended by section 64 of the Welfare Reform and Pensions Act 1999 (c.30) and paragraph 14 of Schedule 24 to the Civil Partnership Act 2004 (c.33).

M153 Regulation 4ZA was inserted by S.I. 1996/206 and amended by S.I. 1996/206, 1997/2197, 2000/636 and 1981, 2001/3070, 2008/1826 and 2009/2655 and 3152. Paragraph 7 of Schedule 1B was inserted by S.I. 1996/206 and amended by S.I. 2009/3152 and 2010/2429. Paragraph 14 of Schedule 1B was inserted by S.I. 1996/206 and amended by S.I. 2002/2689 and 2010/2429.

M154 S.I. 1975/556. Regulation 8B was inserted by S.I. 1996/2367 and amended by S.I. 2000/3120, 2003/521 and 2008/1554 and 2010/385.

M155 S.I. 1999/3110.

M156 2010 nawm 1.

M157 S.I. 2010/2839 (W.233).

M158 2010 asp 8.

M159 2002 c.21.

M160 2006 c.21.

M161 Section 53(2) was amended by S.I. 2012/976.

M162 Section 18(5) was amended by paragraph 19 of Schedule 1 to the Children and Young Persons Act 2008 (c.23) and S.I. 2010/813.

M163 S.S.I. 2009/210.

M164 1995 c.36.

M165 2007 asp 4.

M166 S.I. 2011/581.

M167 S.I. 2003/237 (W.35).

M168 S.I. 2010/781.

M169 S.I. 2004/219 (W.23).

M170 Section 171E was inserted by section 6 of the Social Security (Incapacity for Work) Act 1994 (c.18) and amended by paragraph 76 of Schedule 7 to the Social Security Act 1998 (c.14).

M171 Part 12A was inserted by sections 5 and 6 of the Social Security (Incapacity for Work) Act 1994 (c.18) and amended by paragraph 76 of Schedule 7 to the Social Security Act 1998 (c.14), section 61 of, and paragraphs 23 and 24 of Schedule 8 to, the Welfare Reform and Pensions Act 1999 (c.30) and S.I. 1996/525.

M172 Schedule 4 was substituted by a new Schedule 4 by S.I. 1993/349 and amended by section 2 of the Social Security (Incapacity for Work) Act 1994 (c.18), section 54 of, and paragraph 14 of Schedule 8 to, the Welfare Reform and Pensions Act 1999 (c.30), section 54 of the Welfare Reform and Pensions Act 1999 (c.30), paragraph 15 of Schedule 1 to the Child Benefit Act 2005 (c.6), S.I. 2002/1457, 2003/938, 2008/3270 and 2012/780 and 834.

M173 Section 64 was amended by section 66 of the Welfare Reform and Pensions Act 1999 (c.30).

M174 Section 68 was repealed by Schedule 13 to the Welfare Reform and Pensions Act 1999 (c.30), subject to savings provisions in S.I. 2000/2958.

M175 1978 c.29.

M176 2006 c.41. Paragraph 9(1) was substituted by section 17(10) of the Health and Social Care Act 2012 (c.7).

M177 S.I. 1972/1265 (N.I. 14).

M178 1948 c.29. Section 29 was repealed in relation to Scotland by Schedule 9 to the Social Work (Scotland) Act 1968 (c.49). In relation to England and Wales, section 29 was amended by section 1 of the National Assistance (Amendment) Act 1959 (c.30), Schedule 4 to the Mental Health (Scotland) Act 1960 (c.61), section 195 of, and paragraph 2 of Schedule 23 and Schedule 30 to, the Local Government Act 1972 (c.70), paragraph 3 of Schedule 3 to the Employment and Training Act 1973 (c.50), section 30 of and Schedule 10 to the Health and Social Services and Social Security Adjudications Act 1983 (c.41), section 44 of the National Health Service and Community Care Act 1990 (c.19), paragraph 8 of Schedule 1 to the National Health Service (Consequential Provisions) Act 2006 (c.43) and section 147 of the Health and Social Care Act 2008 (c.14).

M179 Section 35 was amended by section 2(1)(a) of the Still-Birth (Definition) Act 1992 (c.29), section 67 of the Social Security Act 1998 (c.14), section 53 of the Welfare Reform and Pensions Act 1999 (c.30), paragraph 4 of Schedule 7 to the Employment Act 2002 (c.22), paragraph 6 of Schedule 1 to the Work and Families Act 2006 (c.18) and S.I. 1994/1230.

M180 2002 c.21.

Calculation of average weekly income from working tax credits S

30.—(1) This regulation applies where an applicant receives a working tax credit.

(2) Where this regulation applies, the period over which a working tax credit is to be taken into account is the period set out in paragraph (3).

(3) Where the instalment in respect of which payment of a working tax credit is made is—

(a) a daily instalment, the period is one day, being the day in respect of which the instalment is paid;

(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

(c) a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid; and

(d) a 4 weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

Calculation of weekly income S

31.—(1) Except where paragraphs (2) and (4) apply, for the purposes of calculating the weekly income of the applicant, where the period in respect of which a payment of income is made—

(a) does not exceed a week, the whole of that payment is to be included in the applicant's weekly income; and

(b) exceeds a week, the weekly amount is to be determined—

(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

(ii) in a case where that period is 3 months, by multiplying the amount of the payment by 4 and dividing the product by 52;

(iii) in a case where that period is a year, by dividing the amount of the payment by 52; and

(iv) in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

(2) The weekly amount of the applicant's income is to be determined—

(a) where the applicant's regular pattern of work is such that the applicant does not work the same hours every week and there is a recognised cycle of work, by reference to the applicant's average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the applicant does no work, those periods but disregarding any other absences); or

(b) if the applicant's income fluctuates and has changed more than once, on the basis of—

(i) the last two payments if those payments are one month or more apart;

(ii) the last 4 payments if the last two payments are less than one month apart; or

(iii) calculating or estimating any other payments that may, in the particular circumstances of the case, enable the applicant's average weekly income to be determined more accurately.

(3) For the purposes of paragraph (2)(b) the last payments are the last payments before the date the application was made or treated as made or, if there is a subsequent supersession under paragraph 4 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000 M181 , the last payments before the date of the supersession.

(4) If an applicant is entitled to receive a payment to which paragraph (5) applies, the amount of that payment is to be treated as if made in respect of a period of a year.

(5) This paragraph applies to—

(a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

(b) any payment in respect of any—

(i) book registered under the Public Lending Right Scheme 1982 M182 ; or

(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982; and

(c) any payment made on an occasional basis.

(6) The period under which any benefit under the benefit Acts is to be taken into account is the period in respect of which that benefit is payable.

(7) Where payments are made in a currency other than sterling, the value of the payment is to be determined by taking the sterling equivalent on the date the payment is made.

(8) The sums specified in Schedule 2 (sums to be disregarded in the calculation of earnings) must be disregarded when calculating—

(a) the applicant's earnings; and

(b) any amount to which paragraph (5) applies where the applicant is the first owner of the copyright, design, patent or trademark or an original contributor to a book or work referred to in paragraph (5)(b).

(9) For the purposes of paragraph (8)(b) only, the amounts specified in paragraph (5) are to be treated as though they were earnings.

(10) Income specified in Schedule 3 (sums to be disregarded in the calculation of income other than earnings) is to be disregarded in the calculation of an applicant's income.

(11) Schedule 4 (capital disregards) has effect so that—

(a) the capital specified in Part 1 must be disregarded for the purpose of determining an applicant's income; and

(b) the capital specified in Part 2 must be disregarded for the purpose of determining an applicant's income under regulation 27(2) (meaning of “income”: deemed income”).

(12) In the case of any income taken into account for the purpose of calculating a person's income, any amount payable by way of tax must be disregarded.

Marginal Citations

M181 2000 c.19.

M182 The Scheme is set out in the Appendix to S.I. 1982/719. It has been amended by S.I. 1983/480 and 1688, 1984/1847, 1985/1581, 1986/2001 and 2103, 1987/1908, 1988/2070, 1989/2188, 1990/2360, 1991/2618, 1992/3044 and 3049, 1996/1338 and 3237, 1997/1576, 1999/420, 1042 and 3304, 2000/3319, 2001/3984, 2002/3123 and 3135, 2003/3045, 2004/1258 and 3218, 2005/1519 and 3351, 2006/3294, 2009/3259, 2011/54 and 2012/63.

CHAPTER 3 S Employed earners

Earnings of employed earners S

32.—(1) Subject to paragraph (2), “ earnings” means in the case of employment as an employed earner any remuneration or profit derived from that employment and includes—

(a) any bonus or commission;

(b) any payment in lieu of remuneration except any periodic sum paid to an applicant on account of the termination of the applicant's employment by reason of redundancy;

(c) any payment in lieu of notice or any lump sum payment intended as compensation for the loss of employment but only so far as it represents loss of income;

(d) any holiday pay except any payable more than 4 weeks after termination or interruption of the employment;

(e) any payment by way of a retainer;

(f) any payment made by the applicant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the applicant's employer in respect of—

(i) travelling expenses incurred by the applicant between the applicant's home and place of employment; or

(ii) expenses incurred by the applicant under arrangements made for the care of a member of the applicant's family owing to the applicant's absence from home;

(g) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001 M183 ;

(h) statutory sick pay and statutory maternity pay;

(i) ordinary statutory paternity pay or additional statutory paternity pay;

(j) statutory adoption pay; and

(k) any sums payable under a contract of service—

(i) for incapacity for work due to sickness or injury; or

(ii) by reason of pregnancy or confinement.

(2) Earnings do not include—

(a) subject to paragraph (3), any payment in kind;

(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(c) any occupational pension;

(d) any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme M184 ;

(e) any payment of compensation made pursuant to an award by an employment tribunal established under the Employment Tribunals Act 1996 M185 in respect of unfair dismissal or unlawful discrimination; and

(f) any payment in respect of expenses arising out of the applicant's participation in a service user group.

(3) Paragraph (2)(a) does not apply in respect of any non-cash voucher referred to in paragraph (1)(g).

Marginal Citations

M183 S.I. 2001/1004 as relevantly amended by S.I. 2001/2412, 2002/307, 2003/2958, 2004/770, 2005/778, 2006/883 and 2003, 2007/2091, 2008/607, 2009/600 and 2011/1000 and 2700.

M184 The Scheme is set out in regulation 4 of, and the Schedule to, the European Communities (Iron and Steel Employees Re-adaptation Benefits Scheme) (No. 2) (Amendment) Regulations 1996 (S.I. 1996/3812).

M185 1996 c.17.

Calculation of net earnings of employed earners S

33.—(1) For the purposes of regulation 28 (calculation of income on a weekly basis), the earnings of an applicant derived or likely to be derived from employment as an employed earner to be taken into account, subject to regulation 31(4) (calculation of weekly income) and Schedule 2 (sums to be disregarded in the calculation of earnings), are the applicant's net earnings.

(2) For the purposes of paragraph (1) net earnings must, except where paragraph (4) applies, be calculated by taking into account the gross earnings of the applicant from the employment over the assessment period, less—

(a) any amount deducted from those earnings by way of—

(i) income tax; or

(ii) primary Class 1 contributions under the 1992 Act;

(b) one-half of any sum paid by the applicant by way of a contribution towards an occupational pension scheme;

(c) one-half of the amount calculated in accordance with paragraph (3) in respect of any qualifying contribution payable by the applicant; and

(d) where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay, statutory maternity pay, ordinary statutory paternity pay, additional statutory paternity pay or statutory adoption pay, any amount deducted from those earnings by way of any contributions which are payable under any enactment having effect in Northern Ireland and which correspond to primary Class 1 contributions under the 1992 Act.

(3) The amount in respect of any qualifying contribution must be calculated by multiplying the daily amount of the qualifying contribution by the number of days in the assessment period, and for the purposes of this regulation the daily amount of the qualifying contribution must be determined—

(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365; and

(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(4) Where the earnings of an applicant are determined under regulation 31(2)(b) (calculation of weekly income), the net earnings are to be calculated by taking into account those earnings over the assessment period, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate of tax applicable to the assessment period less only the personal relief to which the applicant is entitled under sections 36 or 37 of the Income Tax Act 2007 M186 (personal allowances) as is appropriate to the applicant's circumstances but if the assessment period is less than a year the earnings to which the basic rate of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph are to be calculated on a pro rata basis;

(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by the applicant under the 1992 Act in respect of those earnings if primary Class 1 contributions were payable; and

(c) one-half of any sum which would be payable by the applicant by way of a contribution towards an occupational pension scheme or personal pension scheme if the estimated earnings were actual earnings.

(5) In this regulation “qualifying contribution” means any sum which is payable periodically as a contribution towards a personal pension scheme.

Marginal Citations

M186 2007 c.3. Sections 36 and 37 were amended by section 4 of the Finance Act 2009 (c.10) and S.I. 2011/2926.

CHAPTER 4 S Self-employed earners

Calculation of earnings of self-employed earners S

34.—(1) Where an applicant's earnings consist of earnings from employment as a self-employed earner the weekly amount of the applicant's earnings are to be determined by reference to the applicant's average weekly earnings from that employment—

(a) over a period of one year; or

(b) where the applicant has recently become engaged in that employment or there has been a change which is likely to affect the normal pattern of business, over any other period (“computation period”) as may, in the particular case, enable the weekly amount of the applicant's earnings to be determined more accurately.

(2) For the purposes of determining the weekly amount of earnings of an applicant to whom paragraph (1)(b) applies, the applicant's earnings over the computation period must be divided by the number of days in that period and the quotient must be multiplied by 7.

(3) The period over which the weekly amount of an applicant's earnings must be calculated in accordance with this regulation is the applicant's assessment period.

Earnings of self-employed earners S

35.—(1) Subject to paragraph (2), “earnings” in the case of employment as a self-employed earner means the gross income of the employment.

(2) Earnings in the case of employment as a self-employed earner do not include—

(a) where an applicant occupies a dwelling as the applicant's home and the applicant provides in that dwelling board and lodging accommodation for which payment is made, those payments;

(b) any payment made to an applicant by a local authority under—

(i) regulations 33 or 51 of the Looked After Children (Scotland) Regulations 2009 M187 (fostering and kinship care allowances and fostering allowances); or

(ii) section 22C(5) and (6)(a) or (b) or section 23(2)(a) of the Children Act 1989 M188 (provision of accommodation and maintenance for a child whom they are looking after);

(c) any payment made to an applicant by a voluntary organisation under section 59(1)(a) of the Children Act 1989 M189 (provision of accommodation by voluntary organisations);

(d) any payment made to the applicant or the applicant's partner for a person (“the relevant person”), who is not normally a member of the applicant's household but is temporarily in the applicant's care, by—

(i) a health authority;

(ii) a local authority but excluding payments of housing benefit made in respect of the relevant person;

(iii) a voluntary organisation;

(iv) the relevant person pursuant to section 26(3A) of the National Assistance Act 1948 M190 ;

[F15 (v) the National Health Service Commissioning Board established by section 1H of the National Health Service Act 2006 or a clinical commissioning group established under section 14D of the National Health Service Act 2006;]

(vi) a Local Health Board established under section 16BA of the National Health Service Act 1977 M191 or established by an order made under section 11 of the National Health Service (Wales) Act 2006 M192 ; or

(e) any sports award.

Textual Amendments

F15 Reg. 35(2)(d)(v) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 6

Marginal Citations

M187 S.S.I. 2009/210. Regulation 33 was amended by S.S.I. 2009/290.

M188 1989 c.41. In relation to England sections 22A to 22F were substituted for section 23(2)(a) by section 8 of the Children and Young Persons Act 2008 (c.23) (“the 2008 Act”). Section 23(2)(a) remains in force in relation to Wales and was amended by section 49 of the Children Act 2004 (c.31) and paragraph 7 of Schedule 3 to the 2008 Act.

M189 Section 59(1)(a) was amended by section 49 of the Children Act 2004 (c.31).

M190 1948 c.29. Section 26(3A) was inserted by section 42 of the National Health Service and Community Care Act 1990 (c.19).

M191 Section 16BA was inserted by section 6 of the National Health Service Reform and Health Care Professions Act 2002 (c.17).

M192 2006 c.42.

Calculation of net profit of self-employed earners S

36.—(1) For the purposes of regulation 28 (calculation of income on a weekly basis) 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, that earner's share of the net profit derived from that employment, less—

(i) an amount in respect of income tax and of social security contributions payable under the 1992 Act calculated in accordance with regulation 37 (deduction of tax and contributions of self-employed earners); and

(ii) one-half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

(2) For the purposes of paragraph (1)(a) the net profit of the employment is, except where paragraph (8) applies, to be calculated by taking into account the earnings of the employment over the assessment period less—

(a) subject to paragraphs (4) to (7), 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,

calculated in accordance with regulation 37 (deduction of tax and contributions of self-employed earners); and

(c) one-half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

(3) 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 (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

(4) Subject to paragraph (5), no deduction is to be made under paragraph (2)(a) or (3), 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; and

(f) any expenses incurred in providing business entertainment.

(5) A deduction is to be made under paragraph (2)(a) or (3) in respect of the repayment of capital on any loan used for—

(a) the replacement in the course of business of equipment or machinery; or

(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

(6) A deduction in respect of any expenses under paragraph (2)(a) or (3) must not be made unless the relevant authority is satisfied, given the nature and the amount of the expense, that it has been reasonably incurred.

(7) For the avoidance of doubt—

(a) a deduction must not be made under paragraph (2)(a) or (3) in respect of any sum unless it has been expended for the purposes of the employment;

(b) a deduction must be made under paragraph (2)(a) or (3) 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.

(8) Where an applicant is engaged in employment as a child minder the net profit of the employment is 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 37 (deduction of tax and contributions of self-employed earners); and

(b) one-half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

(9) For the avoidance of doubt where an applicant is engaged in employment as a self-employed earner and the applicant is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of the applicant's employments must not be offset against the applicant's earnings in any other of the applicant's employments.

(10) The amount in respect of any qualifying premium must be calculated by multiplying the daily amount of the qualifying premium by the number of days in the assessment period, and for the purposes of this regulation the daily amount of the qualifying premium must 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 of days in the period to which the qualifying premium relates.

(11) In this regulation, “qualifying premium” means any premium which is payable periodically in respect of a personal pension scheme and which is payable on or after the date of the application.

Deduction of tax and contributions of self-employed earners S

37.—(1) The amount to be deducted in respect of income tax under regulation 36(1)(b)(i), (2)(b)(i) or (8)(a)(i) (calculation of net profit of self-employed earners) must 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 sections 36 or 37 of the Income Tax Act 2007 M193 (personal allowances) as is appropriate to the applicant's circumstances, but if the assessment period is less than a 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 must 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), (2)(b)(ii) or (8)(a)(ii) is the total of—

(a) the amount of Class 2 contributions payable under section 11(1) or, as the case may be, 11(3) of the 1992 Act at the rate applicable to the assessment period except where the applicant's chargeable income is less than the amount specified in section 11(4) of that Act M194 (small earnings exception) for the tax year applicable to the assessment period, but if the assessment period is less than a year the amount specified for that tax year must be reduced pro rata; and

(b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the 1992 Act M195 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 a year those limits must 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 36(2)(a) or (3) (calculation of net profit of self-employed earners); and

(b) in the case of employment as a child minder, one third of the earnings of that employment.

Marginal Citations

M193 2007 c.3. Sections 36 and 37 were amended by section 4 of the Finance Act 2009 (c.10) and S.I. 2011/2926.

M194 Section 11 was amended by paragraph 12 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and S.I. 2012/807.

M195 Section 15 was amended by section 13 of the Limited Liability Partnerships Act 2000 (c.12), section 3 of the National Insurance Contributions Act 2002 (c.19), paragraph 420 of Schedule 1, and Schedule 3, to the Income Tax (Trading and Other Income) Act 2005 (c.5), section 2 of the National Insurance Contributions Act 2011 (c.3) and S.I. 2011/938 and 2012/807.

CHAPTER 5 S Other income

Notional income S

38.—(1) An applicant is to be treated as possessing—

(a) subject to paragraph (2), the amount of any retirement pension income—

(i) for which no claim has been made; and

(ii) to which the applicant could be expected to be entitled if a claim was made; and

(b) income from an occupational pension scheme which the applicant elected to defer.

(2) Paragraph (1)(a) does not apply to the following pensions or benefit where entitlement has been deferred—

(a) a Category A or Category B retirement pension payable under sections 43 to 55 of the 1992 Act;

(b) a shared additional pension payable under section 55A of the 1992 Act M196 ; and

(c) graduated retirement benefit payable under sections 36 and 37 of the National Insurance Act 1965 M197 .

(3) For the purposes of paragraph (2) entitlement has been deferred—

(a) in the case of a Category A or Category B retirement pension, in the circumstances specified in section 55(3) of the 1992 Act M198 ;

(b) in the case of a shared additional pension, in the circumstances specified in section 55C(3) of the 1992 Act M199 ; and

(c) in the case of graduated retirement benefit, in the circumstances specified in section 36(4) and (4A) of the National Insurance Act 1965.

(4) This paragraph applies where a person who has attained the qualifying age for state pension credit—

(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) (i) defers in whole or in part the payment of any income that would have been payable to that person by the pension fund holder;

(ii) fails to take any necessary action to secure that the whole of any income that would be payable to the person by the pension fund holder upon the person applying for it, is paid; or

(iii) is not able to withdraw income under the rules of that scheme.

(5) Where paragraph (4) applies, the amount of any income foregone must be treated as possessed by that person from the date it could be expected to be acquired if an application for it was to be made.

(6) The amount of any income foregone in a case where paragraph (4)(c)(i) or (ii) applies is the maximum amount of income that may be withdrawn from the fund.

(7) The amount of any income foregone in a case where paragraph (4)(c)(iii) applies is the income that the applicant could have received without purchasing an annuity had the funds held under the relevant scheme been held under a personal pension scheme or occupational pension scheme where income withdrawal was available and is the maximum amount of income that could have been withdrawn from the pension scheme fund.

(8) Subject to paragraphs (9) and (10), where a person has been deprived of income as a result of actings by that person carried out for the purpose of securing entitlement to council tax reduction or increasing the amount of that reduction, that income is to be treated as income of that person.

(9) Paragraph (8) does not apply in respect of the amount of an increase of pension or benefit where a person, having made an election in favour of that increase of pension or benefit under Schedule 5 or 5A to the 1992 Act M200 or under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005 M201 , changes that election in accordance with regulations made under Schedule 5 or 5A to the 1992 Act in favour of a lump sum.

(10) Paragraph (8) does not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the person's participation in a service user group.

(11) Where an applicant is in receipt of any benefit under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days after that date, the relevant authority must treat the applicant as possessing that benefit at the altered rate from 1st April or the first Monday in April in that year, whichever date the relevant authority selects to apply in its area, to the date on which the altered rate is to take effect.

(12) In the case of an applicant who has, or whose partner has, an award of state pension credit comprising only the savings credit, where a relevant authority treats the applicant as possessing any benefit under the benefit Acts at the altered rate in accordance with paragraph (11), that authority must—

(a) determine the income and capital of that applicant in accordance with regulation 25(1) (calculation of income in savings credit only cases) where the calculation or estimate of that income and capital is altered with effect from a date on or after 1st April in any year but not more than 14 days after that date; and

(b) treat that applicant as possessing that income and capital at the altered rate from the date selected by the relevant authority to apply in its area for the purposes of establishing the period referred to in paragraph (11).

(13) For the purposes of paragraph (8), a person is not to be regarded as having carried out a deprivation of income where—

(a) the applicant's rights to benefits under a registered pension scheme are extinguished and in consequence of this the applicant receives a payment from the scheme; and

(b) that payment is a trivial commutation lump sum within the meaning given by paragraph 7 of Schedule 29 to the Finance Act 2004 M202 .

(14) In this regulation—

(a) “money purchase benefits” has the meaning given by section 181(1) of the Pension Schemes Act 1993 M203 ; and

(b) “registered pension scheme” has the meaning given in section 150(2) of the Finance Act 2004.

Marginal Citations

M196 Section 55A was inserted by paragraph 3 of Schedule 6 to the Welfare Reform and Pensions Act 1999 (c.30) and amended by section 41 of the Child Support, Pensions and Social Security Act 2000 (c.19).

M197 1965 c.51. Section 36 was amended by S.I. 1989/1642, 1995/2606, 1996/1345, 1997/454, 1999/2422, 2005/454, 2009/2206, 2011/821 and 2012/780. Section 37 was amended by S.I. 1989/1642, 2005/454 and 2009/2206.

M198 Section 55(3) was inserted by section 297 of the Pensions Act 2004 (c.35) and amended by paragraph 7 of Schedule 1 to the Pensions Act 2007 (c.22).

M199 Section 55C(3) was inserted by section 297 of the Pensions Act 2004.

M200 Schedule 5 was amended by paragraphs 6 and 21 of Schedule 4, and Schedule 7, to the Pensions Act 1995 (c.26), paragraphs 6 to 12 and paragraph 14 of Schedule 11 to the Pensions Act 2004 (c.35), Schedule 7 to the Pensions Act 2007 (c.22), paragraph 3 of Schedule 2 to the Pensions Act 2011 (c.19) and S.I. 2005/2053. Schedule 5A was inserted by paragraph 15 of Schedule 11 to the Pensions Act 2004.

M201 S.I. 2005/454 as relevantly amended by S.I. 2005/2677 and 3078 and 2006/516.

M202 2004 c.12. Schedule 29 was relevantly amended by paragraph 29 of Schedule 16 and paragraph 4 of Schedule 18 to the Finance Act 2011 (c.11).

M203 1993 c.48. Section 181(1) was relevantly amended by S.I. 2005/2053.

Income paid to third parties S

39.—(1) Any payment of income, other than a payment specified in paragraphs (2) or (3), to a third party in respect of the applicant is to be treated as possessed by the applicant.

(2) Paragraph (1) does not apply to a payment of income made under an occupational pension scheme, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

(a) the estate of the applicant is subject to sequestration, a judicial factor has been appointed on the applicant's estate under section 41 of the Solicitors (Scotland) Act 1980 M204 , the person has entered a protected trust deed within the meaning of section 73(1) of the Bankruptcy Act 1985 M205 or a bankruptcy order within the meaning of section 381(1) of the Insolvency Act 1986 M206 has been made in respect of the applicant;

(b) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

(c) neither the applicant nor the applicant's partner possesses, or is treated as possessing, any other income apart from that payment.

(3) Paragraph (1) does not apply in respect of any payment of income other than earnings, or earnings derived from employment as an employed earner, arising out of the applicant's participation in a service user group.

(4) In this regulation “the Board of the Pension Protection Fund” means the body corporate established under section 107 of the Pensions Act 2004 M207 .

Marginal Citations

M204 1980 c.46.

M205 1985 c.66. Section 73(1) was relevantly amended by section 20 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3).

M206 1986 c.45.

M207 2004 c.35.

CHAPTER 6 S Capital

Capital limit S

40.  No person is entitled to council tax reduction if that person's capital exceeds £16,000.

Calculation of capital S

41.—(1) Subject to paragraph (2), the capital of an applicant to be taken into account when calculating entitlement to council tax reduction is the whole of the applicant's capital calculated in accordance with this Part.

(2) Any capital specified in Part 1 of Schedule 4 (capital disregards) is to be disregarded when calculating an applicant's capital.

(3) An applicant's capital is to be treated as including any payment made to the applicant by way of arrears of—

(a) child tax credit;

(b) working tax credit; or

(c) state pension credit,

if the payment was made in respect of a period for the whole or part of which the applicant was entitled to council tax reduction.

Calculation of capital in the United Kingdom S

42.  Capital which an applicant possesses in the United Kingdom is to be calculated at its current market or surrender value less—

(a) where there would be expenses attributable to the sale, 10 per cent; and

(b) the amount of any encumbrance secured on it.

Calculation of capital outside the United Kingdom S

43.  Capital which an applicant possesses in a country outside the United Kingdom is to be calculated—

(a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value; and

(b) in a case where there is such a prohibition, at the price it would realise if sold in the United Kingdom to a willing buyer,

less, where there would be expenses attributable to sale, 10 per cent and the amount of any encumbrance secured on it.

Notional capital S

44.—(1) Where an applicant has been deprived of capital as a result of actings by that applicant carried out for the purpose of securing entitlement to council tax reduction or increasing the amount of that reduction that capital is to be treated as capital of the applicant except to the extent that it is reduced in accordance with regulation 45 (diminishing notional capital).

(2) An applicant who disposes of capital for the purpose of—

(a) reducing or paying a debt owed by the applicant; or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the applicant's case,

is not to be regarded as having made a deprivation under paragraph (1).

(3) Where an applicant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, the applicant is to be treated as sole owner or partner and in that case—

(a) the value of the applicant's actual holding in that company must be disregarded notwithstanding regulation 41 (calculation of capital); and

(b) subject to paragraph (4), the applicant is be treated as possessing an amount of capital equal to what would have been the applicant's share of the value of the capital of that company if the applicant had been sole owner or partner.

(4) For so long as an applicant undertakes activities in the course of the business of the company, the amount which the applicant is treated as possessing under paragraph (3) is to be disregarded.

(5) Where an applicant is treated as possessing capital under this regulation, the amount of that capital is to be calculated in accordance with the provisions of this Part as if it were actual capital possessed by the applicant.

Diminishing notional capital S

45.—(1) Where an applicant is treated as possessing capital under regulation 44(1) (notional capital), the amount which the applicant is treated as possessing—

(a) in the case of a week that is subsequent to—

(i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied; or

(ii) a week which follows that relevant week and which satisfies those conditions,

is to be reduced by the amount determined under paragraph (3);

(b) in the case of a week in respect of which paragraph (1)(a) does not apply but where—

(i) that week is a week subsequent to the relevant week; and

(ii) that relevant week is a week in which the condition in paragraph (4) is satisfied,

is to be reduced by the amount determined under paragraph (4).

(2) This paragraph applies to a reduction week or part-week where the applicant satisfies the conditions that—

(a) the applicant is in receipt of council tax reduction; and

(b) but for regulation 44(1), the applicant would have received an additional amount of council tax reduction in that week.

(3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) is equal to the aggregate of—

(a) the additional amount to which paragraph (2)(b) refers;

(b) where the applicant has also claimed state pension credit, the amount of any state pension credit or any additional amount of state pension credit to which the applicant would have been entitled in respect of the reduction week to which paragraph (2) refers but for the application of regulation 21(1) of the State Pension Credit Regulations 2002 M208 (notional capital);

(c) where the applicant has also claimed housing benefit, the amount of any housing benefit or any additional amount of housing benefit to which the applicant would have been entitled in respect of the whole or part of that reduction week to which paragraph (2) refers but for the application of regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 M209 (notional capital);

(d) where the applicant has also claimed a jobseeker's allowance, the amount of an income-based jobseeker's allowance to which the applicant would have been entitled in respect of the reduction week or part-week to which paragraph (2) refers but for the application of regulation 113 of the Jobseeker's Allowance Regulations 1996 M210 (notional capital); and

(e) where the applicant has also claimed an employment and support allowance, the amount of an income-related employment and support allowance to which the applicant would have been entitled in respect of the reduction week or part-week to which paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations M211 (notional capital).

(4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the applicant would have been entitled to council tax reduction in the relevant week but for regulation 44(1) (notional capital), and in such a case the amount of the reduction is to be equal to the aggregate of—

(a) the amount of council tax reduction to which the applicant would have been entitled in the relevant week but for regulation 44(1), and for the purposes of this sub-paragraph if the amount is in respect of a part-week that amount is to be determined by dividing the amount of council tax reduction to which the applicant would have been entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7;

(b) if the applicant would, but for regulation 21 of the State Pension Credit Regulations 2002, have been entitled to state pension credit in respect of the benefit week (within the meaning of regulation 1(2) of those Regulations) which includes the last day of the relevant week, the amount to which the applicant would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount is to be determined by dividing the amount of the state pension credit to which the applicant would have been entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7;

(c) if the applicant would, but for regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, have been entitled to housing benefit or to an additional amount of housing benefit in respect of the reduction week which includes the last day of the relevant week, the amount which is equal to—

(i) in a case where no housing benefit is payable, the amount to which the applicant would have been entitled; or

(ii) in any other case, the amount equal to the additional amount of housing benefit to which the applicant would have been entitled,

and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount is to be determined by dividing the amount of the housing benefit to which the applicant would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7;

(d) if the applicant would, but for regulation 113 of the Jobseeker's Allowance Regulations 1996, have been entitled to an income-based jobseeker's allowance in respect of the benefit week (within the meaning of regulation 1(3) of those Regulations) which includes the last day of the relevant week, the amount to which the applicant would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount is to be determined by dividing the amount of the income-based jobseeker's allowance to which the applicant would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7; and

(e) if the applicant would, but for regulation 115 of the Employment and Support Allowance Regulations, have been entitled to an income-related employment and support allowance in respect of the benefit week (within the meaning of regulation 2(1) of those Regulations) which includes the last day of the relevant week, the amount to which the applicant would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount must be determined by dividing the amount of the income-related employment and support allowance to which the applicant would have been so entitled by the number equal to the number of days in that part-week and multiplying the quotient by 7.

(5) The amount determined under paragraph (4) is to be re-determined under that paragraph if the applicant makes a further application for council tax reduction and the conditions in paragraph (6) are satisfied, and in such a case—

(a) paragraph (4)(a) to (e) applies as if for “relevant week” there was substituted “ relevant subsequent week ”; and

(b) subject to paragraph (7), the amount as re-determined has effect from the first week following the relevant subsequent week in question.

(6) The conditions are that—

(a) a further application is made 26 or more weeks after the latest of—

(i) the date on which the applicant made an application for council tax reduction in respect of which the applicant was first treated as possessing the capital in question under regulation 44(1) (notional capital);

(ii) in a case where there has been at least one re-determination in accordance with paragraph (5), the date on which the applicant last made an application for council tax reduction which resulted in the weekly amount being re-determined; or

(iii) the date on which the applicant last ceased to be entitled to council tax reduction; and

(b) the applicant would have been entitled to council tax reduction but for regulation 44(1).

(7) The amount as re-determined under paragraph (5) is not to have effect if it is less than the amount which applied in that case immediately before the re-determination, and in that case the higher amount continues to have effect.

(8) In this regulation—

(a) “part-week”—

(i) in paragraph (4)(a) means a period of less than a week during which a person is entitled to council tax reduction;

(ii) in paragraph (4)(b), (d) and (e) means—

(aa) a period of less than a week which is the whole period for which state pension credit, an income-related employment and support allowance, or, as the case may be, an income-based jobseeker's allowance, is payable; and

(bb) any other period of less than a week for which either of those benefits is payable; and

(iii) in paragraph (4)(c) means a period of less than a week for which housing benefit is payable;

(b) “relevant week” means the reduction week or part-week in which the capital in question of which the applicant has been deprived within the meaning of regulation 44(1)—

(i) was first taken into account for the purpose of determining the applicant's entitlement to council tax reduction; or

(ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining the applicant's entitlement to council tax reduction on that subsequent occasion and that determination or re-determination resulted in the applicant beginning to receive, or ceasing to receive, council tax reduction,

and where more than one reduction week or part-week is identified by reference to heads (i) and (ii) the later or latest reduction week or, as the case may be, the later or latest part-week; and

(c) “relevant subsequent week” means the reduction week or part-week which includes the day on which the further application or, if more than one further application has been made, the last application was made.

Marginal Citations

M208 S.I. 2002/1792 as relevantly amended by S.I. 2002/3197.

M209 S.I. 2006/214.

M210 S.I. 1996/207. Regulation 113 was amended by S.I. 1997/2197, 1998/2117, 1999/2640 and 3156, 2000/1978, 2001/1029 and 3767, 2003/455, 2004/2308, 2005/2465 and 3391, 2006/588, 2007/719, 2008/2767 and 3157, 2010/641 and 1222 and 2011/688, 917 and 2425.

M211 Regulation 115 was amended by S.I. 2008/2428, 2010/641, 2011/1707 and 2425.

Capital jointly held S

46.  Except where an applicant possesses capital which is disregarded under regulation 44(4) (notional capital), where an applicant and one or more other persons are beneficially entitled in possession to any capital asset the applicant and the person or those persons are to be treated as if each of them were entitled in possession to the whole beneficial interest in an equal share and the provisions of this Chapter apply for the purposes of calculating the amount of capital which the applicant is treated as possessing as if it were actual capital possessed by the applicant.

PART 7 S Amount of reduction

Maximum council tax reduction S

47.—(1) Subject to paragraphs (2) and (3), the amount of a person's maximum council tax reduction in respect of a day for which the person is liable to pay council tax is 100 per cent of the amount A/B where—

(a) A is the amount set by the relevant authority as the council tax for the relevant financial year in respect of the dwelling in which the person is a resident and for which the person is liable, subject to—

(i) any discount which may be appropriate to that dwelling; and

(ii) any reduction in liability for council tax under regulations made under section 80 of the Act or under a scheme established under section 80A of the Act M212 , other than a reduction under these Regulations; and

(b) B is the number of days in that financial year,

less any deductions in respect of non-dependants which fall to be made under regulation 48 (non-dependant deductions).

(2) Subject to paragraph (3), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the person is resident with one or more other persons, but excepting any person residing with the applicant who is a student to whom regulation 20(2) of the Council Tax Reduction Regulations (persons not entitled to council tax reduction: students) applies, in determining the maximum council tax reduction in the person's case in accordance with paragraph (1) the amount A is to be divided by the number of persons who are jointly and severally liable for that tax.

(3) Where an applicant is jointly and severally liable for council tax in respect of a dwelling with only the applicant's partner, paragraph (2) does not apply.

Marginal Citations

M212 Section 80 was amended by paragraph 176 of Schedule 13 to the Local Government etc. (Scotland) Act 1994 (c.39). Section 80A was inserted by section 65 of the Climate Change (Scotland) Act 2009 (asp 12).

Non-dependant deductions S

48.—(1) Subject to the following provisions of this regulation, the non-dependant deductions in respect of a day referred to in regulation 47 (maximum council tax reduction) are—

(a) in respect of a non-dependant aged 18 or over in remunerative work, [F16 £10.95] x 1/7; and

(b) in respect of a non-dependant aged 18 or over to whom sub-paragraph (a) does not apply, [F17 £3.65] x 1/7.

(2) In the case of a non-dependant aged 18 or over to whom paragraph (1)(a) applies, where it is shown to the relevant authority that the [F18 person’s] normal gross weekly income is—

(a) less than [F19 £186.00], the deduction to be made is that specified in paragraph (1)(b);

(b) not less than [F20 £186.00] but less than [F20 £322.00], the deduction to be made is [F20 £7.25] x 1/7; and

(c) not less than [F21 £322.00] but less than [F21 £401.00], the deduction to be made is [F21 £9.15] x 1/7.

(3) Only one deduction is to be made under this regulation in respect of a couple or, as the case may be, members of a polygamous marriage and where, but for this paragraph, the amount that would fall to be deducted in respect of one member of a couple or polygamous marriage is higher than the amount (if any) that would fall to be deducted in respect of the other, or any other, member, the higher amount must be deducted.

(4) In applying the provisions of paragraph (2) in the case of a couple or, as the case may be, a polygamous marriage, regard must be had for the purpose of that paragraph to the couple's or, as the case may be, all members of the polygamous marriage's joint weekly gross income.

(5) Where in respect of a day—

(a) a person is a resident in a dwelling but is not liable for council tax in respect of that dwelling on that day;

(b) other residents in that dwelling (the liable persons) have joint and several liability for council tax in respect of that dwelling on that day otherwise than by virtue of section 77 or 77A of the Act M213 (liability of spouses and civil partners); and

(c) the person to whom sub-paragraph (a) refers is a non-dependant of two or more of the liable persons,

the deduction in respect of that non-dependant must be apportioned equally between those liable persons.

(6) No deduction is to be made in respect of any non-dependants occupying an applicant's dwelling if the applicant or the applicant's partner is—

(a) blind or treated as blind by virtue of paragraph 7 of Schedule 1 (severe disability premium); or

(b) receiving—

(i) attendance allowance;

(ii) the care component of the disability living allowance; or

[F22 (iia) armed forces independence payment;]

(iii) the daily living component of personal independence payment.

(7) No deduction is to be made in respect of a non-dependant if—

(a) although the non-dependant resides with the applicant, it appears to the relevant authority that the non-dependant's normal home is elsewhere;

(b) the non-dependant is in receipt of a training allowance paid in connection with youth training established under section 2 of the 1973 Act M214 or section 2 of the Enterprise and New Towns (Scotland) Act 1990 M215 ;

(c) the non-dependant is a full-time student; or

(d) the non-dependant is not residing with the applicant because the non-dependant has been a patient for a period in excess of 52 weeks, and for these purposes where a person has been a patient for two or more distinct periods separated by one or more intervals, each not exceeding 28 days, the non-dependant is to be treated as having been a patient continuously for a period equal in duration to the total of those distinct periods.

(8) No deduction is to be made in respect of a non-dependant—

(a) who is on income support, state pension credit, an income-based jobseeker's allowance or an income-related employment and support allowance; or

(b) to whom Schedule 1 to the Act M216 applies (persons disregarded for purposes of discount) but this sub-paragraph does not apply to a non-dependant who is a student to whom paragraph 4 of that Schedule refers.

(9) In the application of paragraph (2) there is to be disregarded from the [F23 person’s] weekly gross income—

(a) any attendance allowance, disability living allowance [F24 , armed forces independence payment] or personal independence payment received by the [F25 person];

(b) any payment made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation, the Independent Living Fund (2006) or the London Bombings Relief Charitable Fund which, had the [F23 person’s] income fallen to be calculated under regulation 39 of the Council Tax Reduction Regulations (calculation of income other than earnings), would have been disregarded under paragraph 27 of Schedule 4 to those Regulations (income in kind); and

(c) any payment which, had the [F23 person’s] income fallen to be calculated under regulation 39 of the Council Tax Reduction Regulations, would have been disregarded under paragraph 41 of Schedule 4 to those Regulations (payments made under certain trusts and certain other payments).

Textual Amendments

F16 Sum in reg. 48(1)(a) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(a)(i)

F17 Sum in reg. 48(1)(b) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(a)(ii)

F18 Word in reg. 48(2) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(b)(i)

F19 Sum in reg. 48(2)(a) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(b)(ii)

F20 Sums in reg. 48(2)(b) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(b)(iii)

F21 Sums in reg. 48(2)(c) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(b)(iv)

F22 Reg. 48(6)(b)(iia) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(5)(a)

F23 Word in reg. 48(9) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(c)(i)

F24 Words in reg. 48(9)(a) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(5)(b)

F25 Word in reg. 48(9)(a) substituted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 7(c)(ii)

Marginal Citations

M213 Section 77 was amended by section 4 of the Education (Graduate Endowment and Student Support) (Scotland) Act 2001 (asp 6) and S.S.I. 2005/623. Section 77A was inserted by section 133 of the Civil Partnership Act 2004 (c.33).

M214 Section 2 was substituted by section 25 of the Employment Act 1988 (c.19) and amended by section 29 of and Schedule 7 to the Employment Act 1989 (c.38) and section 47 of the Trade Union Reform and Employment Rights Act 1993 (c.19).

M215 1990 c.35. Section 2 was amended by section 47 of and Schedule 10 to the Trade Union Reform and Employment Rights Act 1993 (c.19), paragraph 20 of Schedule 26 to the Equality Act 2010 (c.15) and S.I. 1999/1820.

M216 Schedule 1 was amended by paragraph 152 of Schedule 9 to the Powers of Criminal Courts (Sentencing) Act 2000 (c.6), paragraph 18 of schedule 3 to the Regulation of Care (Scotland) Act 2001 (asp 8), paragraph 152 of Schedule 1 to the National Health Service (Consequential Provisions) Act 2006 (c.43), paragraph 123 of Schedule 16, and Schedule 17, to the Armed Forces Act 2006 (c.52) and S.S.I. 2005/465.

Extended council tax reduction (qualifying contributory benefits) S

49.—(1) Except in the case of a person who is in receipt of state pension credit, a person who is entitled to council tax reduction by virtue of the general conditions of entitlement is entitled to extended council tax reduction (qualifying contributory benefits) where—

(a) the person or the person's partner was entitled to a qualifying contributory benefit;

(b) entitlement to a qualifying contributory benefit ceased because the person or the person's partner—

(i) commenced employment as an employed or self-employed earner;

(ii) increased their earnings from employment as an employed or self-employed earner; or

(iii) increased the number of hours worked in employment as an employed or self-employed earner,

and that employment, is or the increased earnings or increased number of hours are, expected to last 5 weeks or more;

(c) the person or the person's partner had been entitled to and in receipt of a qualifying contributory benefit or a combination of qualifying contributory benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying contributory benefit ceased; and

(d) the person or the person's partner was not entitled to and not in receipt of a qualifying income-related benefit in the last reduction week in which the person or the person's partner was entitled to a qualifying contributory benefit.

(2) For the purposes of paragraph (1), a person is entitled to council tax reduction by virtue of the general conditions of entitlement where—

(a) the person ceased to be entitled to council tax reduction on vacating the dwelling in which the person was resident;

(b) the first day on which the person vacated the dwelling was in the week in which entitlement to a qualifying contributory benefit ceased or in the preceding week; and

(c) entitlement to the qualifying contributory benefit ceased in any of the circumstances listed in paragraph (1)(b).

Duration of period of entitlement to extended council tax reduction (qualifying contributory benefits) S

50.—(1) Where a person is entitled to extended council tax reduction (qualifying contributory benefits) the period of entitlement starts on the first day of the reduction week immediately following the reduction week in which the person or the person's partner ceased to be entitled to a qualifying contributory benefit.

(2) For the purposes of paragraph (1), a person or a person's partner ceases to be entitled to a qualifying contributory benefit on the day immediately following the last day of entitlement to that benefit.

(3) The period of entitlement to extended council tax reduction (qualifying contributory benefits) ends on the earliest of—

(a) the end of a period of 4 weeks of that entitlement; or

(b) the first day on which the person who is entitled to extended council tax reduction (qualifying contributory benefits) has no liability for council tax.

Amount of extended council tax reduction (qualifying contributory benefits) S

51.—(1) For any week during the period of entitlement to extended council tax reduction (qualifying contributory benefits) the amount of reduction to which the person is entitled is the higher of—

(a) the amount of council tax reduction to which the person was entitled in the last reduction week before the person or the person's partner ceased to be entitled to a qualifying contributory benefit;

(b) the amount of council tax reduction to which the person would be entitled for any reduction week during the period of entitlement to extended council tax reduction (qualifying contributory benefits), if regulation 49 did not apply to the person; or

(c) the amount of council tax reduction to which the person's partner would be entitled if regulation 49 did not apply to the person.

(2) Paragraph (1) does not apply in the case of a mover to whom regulation 52 applies.

(3) Where a person is entitled to extended council tax reduction (qualifying contributory benefits) and the person's partner makes an application for council tax reduction, the person's partner is not entitled to council tax reduction during the existing period of entitlement to extended council tax reduction (qualifying contributory benefits).

Extended council tax reduction (qualifying contributory benefits): movers S

52.—(1) Where a mover who is entitled to extended council tax reduction (qualifying contributory benefits) for council tax to the first authority moves to reside in a dwelling in the area of the second authority that mover is entitled to extended council tax reduction in respect of any liability to pay council tax to the second authority of an amount calculated in accordance with paragraph (2).

(2) The amount of extended council tax reduction (qualifying contributory benefit) to which the mover is entitled is the amount of council tax reduction to which the mover was entitled for the last reduction week before the mover ceased to be entitled to a qualifying contributory benefit.

(3) The period of entitlement to extended council tax reduction (qualifying contributory benefit) in respect of liability to pay council tax to the first authority ends on the day on the earliest of—

(a) the first Sunday after the move; or

(b) the day on which the mover's liability to pay council tax to the first authority ends.

(4) The period of entitlement to extended council tax reduction (qualifying contributory benefits) granted by virtue of paragraph (1)—

(a) starts on the Monday following the day of the move; and

(b) ends on the expiry of the period of extended council tax reduction (qualifying contributory benefits) which would have applied had the mover not moved from the area of the first authority.

Relationship between council tax reduction and extended council tax reduction (qualifying contributory benefits) S

53.—(1) Where a person's entitlement to council tax reduction would have ended when the person ceased to be entitled to a qualifying contributory benefit in the circumstances listed in regulation 49(1)(b), that entitlement does not cease until the end of the period of entitlement to extended council tax reduction.

(2) Part 8 (effective date) does not apply to any extended council tax reduction (qualifying contributory benefits) calculated in accordance with regulation 51(1)(a) or 52(2).

Entitlement to extended council tax reduction or extended council tax reduction (qualifying contributory benefits) under the Council Tax Reduction Regulations S

54.—(1) This regulation applies where—

(a) a person became entitled to extended council tax reduction under regulation 68 of the Council Tax Reduction Regulations or to extended council tax reduction (qualifying contributory benefits) under regulation 73 of those Regulations; and

(b) during that period of entitlement to extended council tax reduction or extended council tax reduction (qualifying contributory benefits) these Regulations become applicable to that person or that person's partner in accordance with regulation 12 (application).

(2) Where this regulation applies, for any week during the period of entitlement to extended council tax reduction or extended council tax reduction (qualifying contributory benefits) referred to in paragraph (1)(a) the amount of council tax reduction to which the person is entitled is the higher of—

(a) the amount of council tax reduction to which the person is entitled under regulation 70(1)(a) of the Council Tax Reduction Regulations or the amount of council tax reduction (qualifying contributory benefits) to which the person is entitled under regulation 75(1)(a) of those Regulations, as the case may be;

(b) the amount of council tax reduction to which the person would be entitled under the general conditions of entitlement of these Regulations, if regulation 68 (extended council tax reduction) or regulation 73 (extended council tax reduction (qualifying contributory benefits)) of the Council Tax Reduction Regulations did not apply to the person; or

(c) the amount of council tax reduction to which the person's partner would be entitled under these Regulations if regulation 68 or regulation 73 of the Council Tax Reduction Regulations did not apply to the person.

(3) No partner of a person to whom this regulation applies is entitled to council tax reduction.

Continuing payments where state pension credit claimed S

55.—(1) This regulation applies where—

(a) a person is entitled to council tax reduction;

(b) paragraph (2) is satisfied; and

(c) either—

(i) the person has attained the qualifying age for state pension credit or, if the person's entitlement to income-based jobseeker's allowance or income-related employment and support allowance continued beyond that age, has attained the age of 65; or

(ii) the person's partner has claimed state pension credit.

(2) This paragraph is satisfied if the Secretary of State has certified that the person's partner has claimed state pension credit or that—

(a) the person's award of—

(i) income support has terminated because the person has attained the qualifying age for state pension credit; or

(ii) income-based jobseeker's allowance or income-related employment and support allowance has terminated because the person has attained the qualifying age for state pension credit or the age of 65; and

(b) the person has claimed or is treated as having claimed or is required to make a claim for state pension credit.

(3) Subject to paragraph (4), in a case to which this regulation applies, the person's entitlement to council tax reduction is to continue for the period of 4 weeks beginning on the day following the day the person's entitlement to income support, income-based jobseeker's allowance or income-related employment and support allowance ceased if and for so long as the applicant otherwise satisfies the conditions for entitlement to council tax reduction.

(4) Where the person continues to be entitled to council tax reduction in accordance with paragraph (3) and the last day of the 4 week period of entitlement falls on a day other than the last day of a reduction week, the person's entitlement to council tax reduction continues until the end of the reduction week in which the last day of the 4 week period falls.

(5) Throughout the period of 4 weeks specified in paragraph (3) and any further period specified in paragraph (4)—

(a) the whole of the income and capital of the person must be disregarded; and

(b) the appropriate maximum council tax reduction of the person is that which was applicable in the person's case immediately before that 4 week period commenced.

(6) The appropriate maximum council tax reduction is to be calculated in accordance with regulation 47(1) if, since the date it was last calculated,—

(a) the person's council tax liability has increased; or

(b) a change in the deduction under regulation 48 (non-dependant deductions) falls to be made.

Alternative maximum council tax reduction S

56.—(1) Subject to paragraphs (2) and (3), the alternative maximum council tax reduction where the conditions set out in regulation 14(3) and (6) (conditions of entitlement to council tax reduction) are fulfilled is the amount determined in accordance with Schedule 5.

(2) Subject to paragraph (3), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the applicant is resident with one or more other persons, in determining the alternative maximum council tax reduction in the applicant's case, the amount determined in accordance with Schedule 5 must be divided by the number of persons who are jointly and severally liable for that tax.

(3) Paragraph (2) does not apply in the case of an applicant who is jointly and severally liable for council tax in respect of a dwelling with the applicant's partner only by virtue only of section 77 or 77A of the Act (liability of spouses and civil partners).

Residents of a dwelling to whom regulation 14(6) does not apply S

57.  Regulation 14(6) (conditions of entitlement to council tax reduction: alternative maximum council tax reduction) does not apply in respect of—

(a) a person who is liable for council tax solely in consequence of the provisions of section 77 or 77A of the Act M217 ;

(b) a person who is residing with a couple or with the members of a polygamous marriage where the applicant is a member of that couple or of that marriage and—

(i) in the case of a couple, neither member of that couple is a person who, in accordance with Schedule 1 to the Act M218 , falls to be disregarded for the purposes of discount; or

(ii) in the case of a polygamous marriage, two or more members of that marriage are not persons who, in accordance with Schedule 1 to the Act, fall to be disregarded for the purposes of discount;

(c) a person who jointly with the applicant falls within the same sub-paragraph of section 75(2)(a) to (e) of the Act M219 (persons liable to pay council tax) as applies in the case of the applicant; or

(d) a person who is residing with two or more persons both or all of whom fall within the same sub-paragraph of section 75(2)(a) to (e) of the Act and two or more of those persons are not persons who, in accordance with Schedule 1 to the Act, fall to be disregarded for the purposes of discount.

Marginal Citations

M217 Section 77 was amended by section 4 of the Education (Graduate Endowment and Student Support) (Scotland) Act 2001 (asp 6) and S.S.I. 2005/623. Section 77A was inserted by section 133 of the Civil Partnership Act 2004 (c.33).

M218 Schedule 1 was amended by paragraph 152 of Schedule 9 to the Powers of Criminal Courts (Sentencing) Act 2000 (c.6), paragraph 18 of schedule 3 to the Regulation of Care (Scotland) Act 2001 (asp 8), paragraph 152 of Schedule 1 to the National Health Service (Consequential Provisions) Act 2006 (c.43), paragraph 123 of Schedule 16 and paragraph 1 of Schedule 17 to the Armed Forces Act 2006 (c.52) and S.S.I. 2005/465.

M219 Section 75(2) was amended by paragraph 19 of schedule 10 to the Housing (Scotland) Act 2001 (asp 10).

PART 8 S Effective date

Date on which entitlement begins S

58.—(1) Subject to paragraph (2), where a person—

(a) makes, or is treated as making, an application; and

(b) fulfils the conditions of entitlement to council tax reduction in regulation 14,

that person is entitled to council tax reduction from the first Monday after the date on which the application is made or treated as made.

(2) Where, a person—

(a) becomes liable for the first time for council tax in respect of a dwelling in which the person resides;

(b) makes, or is treated as making, an application in the reduction week in which the person first becomes liable for council tax in respect of that dwelling; and

(c) fulfils the conditions of entitlement to council tax reduction in regulation 14,

that person is entitled to council tax reduction from the day on which the person first becomes liable for council tax.

Date on which a change of circumstances is to take effect S

59.—(1) Subject to the provisions of this regulation and regulation 60 (change of circumstances where state pension credit is in payment), a change of circumstances which affects entitlement to council tax reduction is to take effect for the purpose of calculating entitlement to council tax reduction from the first day of the reduction week starting immediately after the date on which the change actually occurs, and where that change is cessation of entitlement to any benefit under the benefit Acts, the date on which the change actually occurs is the day immediately following the last day of entitlement to that benefit.

(2) Subject to paragraph (3), where the change of circumstances is a change in the amount of council tax payable, it takes effect for the purpose of calculating entitlement to council tax reduction from the day on which it actually occurs.

(3) Where the change of circumstances is a change in the amount a person is liable to pay in respect of council tax in consequence of regulations under section 80 of the Act M220 (reduced amounts of council tax) or changes in the discount to which a dwelling may be subject under section 79 M221 of that Act, it takes effect for the purpose of calculating entitlement to council tax reduction from the day on which the change in amount has effect.

(4) Where the change of circumstances is an amendment to these Regulations, it takes effect for the purpose of calculating entitlement to council tax reduction from the date on which the amendment to these Regulations comes into force.

(5) Where the change of circumstances is the applicant's acquisition of a partner, it takes effect for the purpose of calculating entitlement to council tax reduction on the day on which they become partners.

(6) Where the change of circumstances is the death of an applicant's partner or their separation, it takes effect for the purpose of calculating entitlement to council tax reduction on the day the death or separation occurred.

(7) If two or more changes of circumstances occurring in the same reduction week would, but for this paragraph, take effect for the purpose of calculating entitlement to council tax reduction in different reduction weeks in accordance with paragraphs (1) to (6) they take effect from the day to which the appropriate paragraph from (2) to (6) refers, or, where more than one day is concerned, from the earlier day.

(8) Where the change of circumstances is that income, or an increase in the amount of income, other than a benefit or an increase in the amount of a benefit under the 1992 Act [F26 , Part 4 of the Welfare Reform Act 2012 or article 24A of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011], is paid in respect of a past period and there was no entitlement to income of that amount during that period, it takes effect for the purpose of calculating entitlement to council tax reduction from the first day on which the income, had it been paid in that period at intervals appropriate to that income, would have been taken into account for the purposes of these Regulations.

(9) Without prejudice to paragraph (8), where the change of circumstances is the payment of income or arrears of income in respect of a past period, it takes effect for the purpose of calculating entitlement to council tax reduction from the first day on which the income, had it been timeously paid in that period at intervals appropriate to that income, would have been taken into account for the purposes of these Regulations.

(10) Paragraph (11) applies if—

(a) the applicant or the applicant's partner has attained the age of 65; and

(b) either—

(i) a non-dependant took up residence in the applicant's dwelling; or

(ii) there has been a change of circumstances in respect of a non-dependant as a result of which the amount of the deduction to be made under regulation 48 (non-dependant deductions) increased.

(11) Where this paragraph applies, the change of circumstances referred to in paragraph (10)(b) takes effect from the effective date.

(12) Subject to paragraph (13), in paragraph (11) “the effective date” means—

(a) where more than one change of a kind referred to in paragraph (10)(b) relating to the same non-dependant has occurred since the latest of—

(i) the date on which the applicant's entitlement to council tax reduction first began; or

(ii) the date which was the last effective date in respect of such a change,

the date which falls 26 weeks after the date on which the first change occurred; and

(b) where sub-paragraph (a) does not apply, the date which falls 26 weeks after the date on which the change referred to in paragraph (10)(b) occurred.

(13) If in any particular case the date determined under paragraph (12) is not the first day of a reduction week, the effective date in that case is the first day of the reduction week starting immediately after the date determined under that paragraph.

Textual Amendments

F26 Words in reg. 59(8) inserted (11.6.2013) by The Welfare Reform (Consequential Amendments) (Scotland) (No. 3) Regulations 2013 (S.S.I. 2013/142), regs. 1, 12(6)

Marginal Citations

M220 Section 80 was amended by paragraph 176 of Schedule 13 to the Local Government etc. (Scotland) Act 1994 (c.39).

M221 Section 79 was amended by S.S.I. 2005/51.

Change of circumstances where state pension credit is in payment S

60.—(1) Paragraphs (2) to (4) apply where—

(a) the applicant is on state pension credit;

(b) the amount of state pension credit awarded to the applicant is changed as a result of a change in the applicant's circumstances or the correction of an official error; and

(c) the change in the amount of state pension credit payable to the applicant results in a change in the applicant's entitlement to council tax reduction.

(2) Where the change of circumstances is that an increase in the amount of state pension credit payable to the applicant results in—

(a) an increase in the amount of council tax reduction to which the applicant is entitled, it takes effect from the first day of the reduction week in which state pension credit becomes payable at the increased rate; or

(b) a decrease in the amount of council tax reduction to which the applicant is entitled, it takes effect from the first day of the reduction week starting immediately after the latest of—

(i) the date on which the relevant authority receives notification from the Secretary of State of the increase in the amount of state pension credit; or

(ii) the date on which state pension credit is increased.

(3) Where the change of circumstances is that the applicant's state pension credit has been reduced and as a result the amount of council tax reduction to which the applicant is entitled is reduced—

(a) in a case where the applicant's state pension credit is reduced because the applicant failed to notify the Secretary of State timeously of the change of circumstances, the change takes effect from the first day of the reduction week in which state pension credit was reduced; and

(b) in any other case the change takes effect from the first day of the reduction week starting immediately after the latest of—

(i) the date on which the relevant authority receives notification from the Secretary of State of the reduction in the amount of state pension credit; or

(ii) the date on which state pension credit is reduced.

(4) Where the change of circumstances is that state pension credit is reduced and as a result the amount of council tax reduction to which the applicant is entitled is increased, the change takes effect from the first day of the reduction week in which state pension credit becomes payable at the reduced rate.

(5) Where the change of circumstances is that an award of state pension credit has been made to the applicant or the applicant's partner and this would result in a decrease in the amount of council tax reduction to which the applicant is entitled, the change takes effect from the first day of the reduction week starting immediately after the latest of—

(a) the date on which the relevant authority receives notification from the Secretary of State of the award of state pension credit; or

(b) the date on which entitlement to state pension credit begins.

(6) Where, in the case of an applicant or any partner of an applicant who is or has been awarded state pension credit comprising only the savings credit, there is—

(a) a change of circumstances of a kind described in any of paragraphs (2) to (5) which is the result of a relevant calculation or estimate; and

(b) a change of circumstances which is a relevant determination,

each of which results in a change in the amount of council tax reduction to which the applicant is entitled, the change of circumstances referred to in sub-paragraph (b) takes effect from the day specified in paragraphs (2), (3), (4) or (5) as the case may be, in relation to the change referred to in sub-paragraph (a).

(7) Where the change of circumstances is that a guarantee credit has been awarded to the applicant or any partner of the applicant and that would result in an increase in the amount of council tax reduction to which the applicant is entitled, the change takes effect from the first day of the reduction week starting immediately after the date in respect of which the guarantee credit is first payable.

(8) Where a change of circumstances would, but for this paragraph, take effect under the preceding provisions of this regulation within the 4 week period specified in regulation 55 (continuing payments where state pension credit claimed), that change takes effect on the first day of the reduction week starting immediately after the expiry of the 4 week period.

(9) Where the change of circumstances is an amendment of these Regulations that change takes effect from the date on which the amendment to these Regulations comes into force.

(10) In this regulation—

(a) “relevant calculation or estimate” means the calculation or estimate made by the Secretary of State of the applicant's or, as the case may be, the applicant's partner's income and capital for the purposes of the award of state pension credit; and

(b) “relevant determination” means a change in the determination by the relevant authority of the applicant's income and capital using the relevant calculation or estimate, in accordance with regulation 25(1) (calculation of income in savings credit only cases).

PART 9 S Applications

Who may apply S

61.  In the case of a couple or members of a polygamous marriage an application is to be made by whichever one of them they agree should apply or, in default of agreement, by whichever one of them the relevant authority determines is to make the application.

Time limit for making an application S

62.—(1) Subject to paragraph (2), an application for council tax reduction must be made within 3 months of the date when the applicant fulfils the conditions of entitlement to council tax reduction in regulation 14 other than the condition in regulation 14(3)(c) (submission of an application).

(2) In a case where regulation 65(1)(a) (date on which an application is made) applies, paragraph (1) does not entitle an applicant to apply for council tax reduction in respect of any day earlier than 3 months before the date on which the claim for state pension credit is made (or treated as made by virtue of any provision of the Social Security (Claims and Payments) Regulations 1987 M222 ).

Marginal Citations

M222 S.I. 1987/1968 as amended by section 12 of the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004 (c.19) and S.I. 1988/522 and 664, 1725, 1989/136, 1642 and 1686, 1990/725, 1871 and 2208, 1991/387, 2284 and 2741, 1992/247, 1026, 2595, 3002 and 3147, 1993/478, 495, 1113 and 2113, 1994/2319, 2943, 2944 and 3196, 1995/1613, 2303, 2927 and 3055, 1996/425, 481, 672, 1436, 1460, 1803, 2306, 2344, 2431, 2988 and 3195, 1997/792, 793, 827, 2290, 2305 and 3034, 1998/1174, 1381 and 3039, 1999/1510, 2358, 2422, 2431, 2556, 2566, 2572, 3108 and 3178, 2000/636, 897, 1366, 1483, 1596, 1926, 1982 and 2978, 2001/18, 488, 518, 567, 892 and 3120, 2002/355, 398, 428, 1397, 1696, 1703, 1789, 1950, 2441, 2469, 2497, 2660, 3019 and 3197, 2003/455, 470, 1050, 1589, 1632, 2274, 2325, 2800 and 3209, 2004/576, 696, 959, 1821, 2283, 2327 and 2825, 2005/34, 337, 455, 777, 1551, 2154, 2677, 2687, 2877, 2878, 3078 and 3321, 2006/217, 551, 832, 2377, 2378 and 3188, 2007/541, 775, 1331, 1866, 2470, 2870, 2911 and 3183, 2008/441, 667, 698, 1554, 1599, 2424, 2667, 2683, 2767, 2831 and 2839, 2009/583, 604, 607, 1488, 1490, 2655 and 3229, 2010/444, 510, 641, 671, 796, 826, 840, 870, 986, 1676, 1794, 1907, 2429 and 2760, 2011/100, 674, 679, 830, 1498, 1554, 2425, 2426 and 2943 and 2012/641, 644, 700, 702, 757, 819 and 824.

Written applications S

63.—(1) Subject to regulation 64 (telephone applications), an application must be sent to the designated office in writing and—

(a) made on a properly completed form approved for the purpose by the relevant authority; or

(b) in such written form as the relevant authority accepts as sufficient in the circumstances of any particular case or class of cases having regard to the sufficiency of the written information and evidence.

(2) Where an application is not made in the form described in paragraph (1)(a) or (b) it is defective.

(3) Where an application is defective because—

(a) it was made on the form approved for the purpose but that form is not accepted by the relevant authority as being properly completed; or

(b) it was made in writing but not on the form approved for the purpose and the relevant authority does not accept the application as being in a written form which is sufficient in the circumstances of the case, having regard to the sufficiency of the written information and evidence,

the relevant authority may—

(c) in a case to which sub-paragraph (a) applies, request the applicant to complete the defective application; or

(d) in a case to which sub-paragraph (b) applies, supply the applicant with the approved form or request further information or evidence.

(4) A defective application is to be treated as if it had been validly made in the first instance if, in any particular case, one of the conditions specified in paragraph (5) is satisfied.

(5) The conditions are that—

(a) where paragraph (3)(a) (incomplete form) applies, the relevant authority receives the properly completed application, the information requested to complete it or the evidence within one month of the authority's request, or any longer period the relevant authority considers reasonable; or

(b) where paragraph (3)(b) (application not on approved form or further information requested by relevant authority) applies—

(i) the approved form sent to the applicant is received by the relevant authority properly completed within one month of it having been sent to the applicant, or any longer period the relevant authority considers reasonable; or,

(ii) the applicant supplies whatever information or evidence was requested under paragraph (3) within one month of the request, or any longer period the relevant authority considers reasonable.

(6) An application made on an approved form is for the purposes of these Regulations properly completed if completed in accordance with the instructions on the form, including any instructions to provide information and evidence in connection with the application.

Telephone applications S

64.—(1) Where the relevant authority has published a telephone number for the purpose of receiving applications for council tax reduction, an application may be made by telephone to that telephone number.

(2) The relevant authority may determine that an application made by telephone is not a valid application unless the applicant approves a written statement of the person's circumstances, provided by the relevant authority.

(3) An application made by telephone in accordance with paragraph (1) is defective unless the relevant authority is provided with all the information requested by it during the telephone call.

(4) Where an application made by telephone in accordance with paragraph (1) is defective, the applicant must be given an opportunity to correct the defect.

(5) If the applicant corrects the defect referred to in paragraph (4) within one month, or any longer period the relevant authority considers reasonable, of the date the authority last drew attention to the defect, the application is to be treated as if it had been validly made in the first instance.

(6) If the person does not correct the defect within one month, or any longer period the relevant authority considers reasonable, of the date the authority last drew attention to the defect, the application may be treated as if it had not been defective if the relevant authority considers that it has sufficient information to determine the application.

Date on which an application is made S

65.—(1) Subject to paragraph (3) and regulation 5(9) (occupation of a dwelling as a home), the date on which an application is made is—

(a) where an award of state pension credit which comprises a guarantee credit has been made to the applicant or the applicant's partner and the application for council tax reduction is made within one month of the date on which the claim for that state pension credit which comprises a guarantee credit was received at the appropriate DWP office, the first day of entitlement to state pension credit which comprises a guarantee credit arising from that claim;

(b) where the applicant or the applicant's partner is in receipt of a guarantee credit and the applicant becomes liable for the first time to pay council tax in respect of the dwelling which the applicant occupies as a home and the application for council tax reduction is received within one month of the date on which the applicant first became liable to pay that council tax, the date when the applicant first became so liable;

(c) where the applicant is the former partner of a person who was, at the date of that partner's death or the partners' separation, entitled to council tax reduction and where the applicant makes an application for council tax reduction within one month of the date of the death or the separation, that date;

(d) except where sub-paragraph (a), (b) or (c) is satisfied, in a case where a properly completed application is received within one month, or any longer period the relevant authority considers reasonable, of the date on which—

(i) an application form was issued to the applicant following the applicant first notifying, by whatever means, the relevant authority of an intention to make an application; or

(ii) the applicant notifies, by whatever means, the relevant authority of an intention to make an application by telephone in accordance with regulation 64,

the date of first notification; and

(e) in any other case, the date on which the application is received by the relevant authority.

(2) Except in the case of an application by a person living abroad, where the applicant is not liable for council tax but it is anticipated that the applicant will become liable for council tax within a period of 8 weeks, the applicant may apply for council tax reduction at any time in that 8 week period and, if liability arises within that 8 week period, the application is to be treated as having been made on the day on which the liability for council tax arises.

(3) Except in the case of an application by a person living abroad, where the applicant or any partner of the applicant has attained the age which is 17 weeks younger than the qualifying age for state pension credit and is not entitled to council tax reduction in the first reduction week starting after the date of the application but the relevant authority is of the opinion that the applicant will become entitled to council tax reduction for a period beginning not later than the seventeenth benefit week following the date on which the application is made, the relevant authority may treat the application as made in the reduction week immediately before the first reduction week of the period of entitlement.

(4) Where a relevant authority has not set or imposed its council tax by the beginning of the financial year, if an application for council tax reduction is made or treated as made and—

(a) the date on which the application is made or treated as made is in the period starting on 1^st April of the current year and ending one month after the date on which the relevant authority imposes its council tax; and

(b) if the council tax had been determined by the beginning of the financial year, the applicant would have been entitled to council tax reduction from—

(i) the reduction week in which 1st April of the current year fell; or

(ii) a reduction week falling after 1st April of the current year but before the application was made,

the relevant authority is to treat the application as made in the reduction week immediately preceding the reduction week in which the applicant would have become entitled to council tax reduction.

(5) In this regulation “appropriate DWP office” means an office of the Department for Work and Pensions dealing with state pension credit or a claim office which is normally open to the public for the receipt of claims for income support, a jobseeker's allowance or an employment and support allowance.

Evidence and information S

66.—(1) Subject to paragraphs (2) and (3) an applicant must furnish any certificates, documents, information and evidence in connection with an application for council tax reduction or existing entitlement to council tax reduction as may reasonably be required by the relevant authority in order to determine that person's entitlement to, or continuing entitlement to, council tax reduction and must do so within one month of the authority requiring the applicant to do so, or any longer period the authority considers reasonable.

(2) Nothing in this regulation requires a person to furnish any certificates, documents, information or evidence relating to a payment to which paragraph (3) applies.

(3) This paragraph applies to—

(a) a payment which is made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation or the London Bombings Relief Charitable Fund;

(b) a payment which is disregarded under paragraph 16 of Schedule 4 (payments made under certain trusts and certain other payments), other than a payment under the Independent Living Fund (2006); and

(c) a payment which is disregarded under regulation 48(9)(b) or (c) (non-dependant deductions) or paragraph 2(b) or (c) of Schedule 5 (alternative maximum council tax reduction: second adult's gross income) other than a payment under the Independent Living Fund (2006).

(4) Where a request is made under paragraph (1) the relevant authority must—

(a) inform the applicant of the duty under regulation 69 to notify the authority of any change of circumstances; and

(b) without prejudice to the extent of the duty owed under regulation 69, indicate to the applicant, either orally or by notice or by reference to some other document available to that applicant, on application and without charge, the kind of changes of circumstances which are to be notified.

(5) Where an applicant or any partner of the applicant has attained the qualifying age for state pension credit and is a member of, or a person deriving entitlement to a pension under, a personal pension scheme the applicant must, where the relevant authority so requires, furnish the following information—

(a) the name and address of the pension fund holder; and

(b) any other information including any reference or policy number needed to enable the personal pension scheme to be identified.

(6) In this regulation “pension fund holder” means the trustees, managers or scheme administrators, as the case may be, of the scheme concerned.

Amendment of applications S

67.—(1) Subject to paragraph (2), at any time before a relevant authority has made a determination on an application the applicant may amend the application by notice in writing delivered or sent to the designated office.

(2) Where an application is made by telephone in accordance with regulation 64 an amendment may be made by telephone to the telephone number specified by the relevant authority for the purpose of that regulation.

(3) Any application amended in accordance with paragraph (1) or (2) is to be treated as if it had been in its amended state when it was first made.

Withdrawal of applications S

68.—(1) An applicant may withdraw the application at any time by notice in writing delivered or sent to the designated office before the relevant authority has determined the application.

(2) Where the application was made by telephone in accordance with regulation 64, the withdrawal may be made by telephone to the telephone number specified by the relevant authority for the purpose of that regulation.

(3) Any notice of withdrawal given in accordance with paragraph (1) or (2) has effect when it is received by the relevant authority.

PART 10 S Notification of change of circumstances

Duty to notify changes of circumstances S

69.—(1) Subject to paragraphs (2) to (7) and regulation 70 (alternative means of notifying changes of circumstances), if at any time between the making of an application and it being determined or during a period of entitlement to council tax reduction, there is a change of circumstances which an applicant might reasonably be expected to know might affect entitlement to council tax reduction that applicant must notify that change of circumstances by giving notice to the relevant authority at the designated office—

(a) in writing; or

(b) by telephone—

(i) where the relevant authority has published a telephone number for that purpose or for the purposes of regulation 64 (telephone applications), unless the authority determines that in any particular case, or class of case, notification of a change of circumstances may not be given by telephone; or

(ii) in any case, or class of case, where the relevant authority determines that notice of a change of circumstances may be given by telephone; or

(c) by any other means the relevant authority agrees to in any particular case.

(2) Subject to paragraph (3), the duty imposed by paragraph (1) does not extend to notifying changes—

(a) in the amount of council tax payable to the relevant authority;

(b) in the age of the applicant or of any member of the applicant's family; or

(c) to these Regulations.

(3) Notwithstanding paragraph (2)(b) an applicant is required by paragraph (1) to notify the relevant authority of any change in the composition of the applicant's family arising from the fact that a person who was a member of the family is now no longer a member of the family because that person ceased to be a child or young person.

(4) Where the amount of an entitled person's council tax reduction is the alternative maximum council tax reduction applicable to that person calculated in accordance with regulation 56, the person is required by paragraph (1) to notify the relevant authority of changes which occur in the number of adults in the dwelling or in their total gross incomes which might reasonably be expected to change the applicant's entitlement to council tax reduction and where any of those adults ceases to be in receipt of state pension credit, income support, universal credit, an income-based jobseeker's allowance or an income-related employment and support allowance the date when this occurs.

(5) An applicant who is entitled to council tax reduction and state pension credit need only notify the changes specified in paragraphs (6) and (7).

(6) An applicant referred to in paragraph (5) must notify—

(a) changes affecting the residence or income of any non-dependant normally residing with the applicant or with whom the applicant normally resides; and

(b) any absence from the dwelling which exceeds or is likely to exceed 13 weeks.

(7) In addition to the changes required to be notified under paragraph (6), an applicant referred to in paragraph (5) whose state pension credit comprises only a savings credit must also notify—

(a) changes affecting a child living with the person which may result in a change in the amount of council tax reduction to which the applicant is entitled, but this does not include changes in the age of the child;

(b) any change in the amount of the applicant's capital to be taken into account when calculating the applicant's entitlement to council tax reduction which does or may take the amount of the applicant's capital to more than £16,000; and

(c) any change in the income or capital of—

(i) a non-dependant whose income and capital are treated as belonging to the applicant in accordance with regulation 22 (circumstances in which capital and income of a non-dependant is to be treated as applicant's); or

(ii) a person to whom regulation 25(2)(e) (calculation of income in savings credit only cases) refers,

and whether such a person or, as the case may be, non-dependant stops living with, or begins or resumes living with, the applicant.

Alternative means of notifying changes of circumstances S

70.  Where a change of circumstances described in regulation 69 is a birth or death the relevant authority may determine for a particular class of case that the duty in that regulation to notify a change in circumstances may be discharged by personal attendance at an office specified by that authority.

[F27 PART 10A S Reviews

Textual Amendments

F27 Pt. 10A inserted (1.10.2013) by The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2013 (S.S.I. 2013/218), regs. 1, 13 (with reg. 18)

Review of determination on an application S

70A.— (1) A determination on an application may not be appealed to a valuation appeal committee.

(2) An applicant who is aggrieved by a determination on an application may serve a written notice on the relevant authority requesting that it review its determination.

(3) The notice under paragraph (2) must be served within two months of the determination it relates to and must state the matter by which, and the grounds on which, the applicant is aggrieved.

(4) Where a notice under paragraph (2) is served on a relevant authority, that authority must—

(a) consider the matter to which the notice relates;

(b) within two months of receipt of the notice, redetermine the application or decide that no alteration of the determination is to be made;

(c) notify the applicant in writing of its decision and that if the applicant remains aggrieved then a request for further review may be made within 42 days of the notification, with the address to which any such a request is to be sent.

Request for further review S

70B.— (1) A request for further review of a determination on an application must be made in writing within 42 days of the notification by the relevant authority under sub-paragraph (c) of regulation 70A(4) and be served at the address notified under that sub-paragraph.

(2) A request for further review of a determination on an application may also be made where a relevant authority has not notified the applicant of a decision on a request for review under regulation 70A(2) and more than two months have elapsed since the notice requesting review was served.

(3) A request under paragraph (2)—

(a) must be made in writing and be served on the relevant authority; and

(b) prevents the relevant authority from notifying a decision on the request for review under regulation 70A(2).

(4) A request for further review must state the matter by which, and the grounds on which, the applicant is aggrieved.

(5) Where a relevant authority is served with a notice requesting further review it must, as soon as possible, forward it to the panel appointed by the Scottish Ministers under regulation 90C of the Council Tax Reduction Regulations.

Conduct of further reviews S

70C.— (1) A further review of a determination on an application is to be undertaken by one member of the panel appointed under regulation 90C(1) of the Council Tax Reduction Regulations, except as set out in paragraph (8).

(2) A further review is to include an oral hearing unless the parties and the member of the panel who is undertaking the review agree that the review is to be disposed of by written representations.

(3) A party to a further review must, if requested, advise the member of the panel who is undertaking the review—

(a) whether that party agrees that the review may be disposed of by written representations;

(b) whether the applicant has appealed any application for housing benefit that may be relevant to the consideration of the further review, and if so whether that appeal has been determined (insofar as these matters are within the party’s knowledge).

(4) Where either party to a further review is requested by the member of the panel who is undertaking the further review to provide documents or information and fails to respond to that request within such timescale as the member considers reasonable, such inferences may be drawn from the failure as the member sees fit, including the inference that the further review should be allowed or refused.

(5) A request for further review that has been validly made in accordance with regulation 70B may not be withdrawn other than with leave of the member of the panel who is undertaking that review.

(6) The member of the panel who is undertaking the further review—

(a) is to decide the procedure for that review;

(b) may hold any oral hearing in public or private, as the member sees fit;

(c) may request, but has no power to require, the production of documents or the attendance of any person as a witness;

(d) if satisfied that there are good and sufficient reasons for doing so, may refuse to permit a particular person to represent a party at an oral hearing; and

(e) may uphold or reject the request for that review, in full or in part, but must remit any calculation of the amount of an applicant’s entitlement to a council tax reduction to the relevant authority.

(7) The relevant authority must implement the decision of the member of the panel disposing of a request for further review of a determination as soon as is reasonably practicable, including any calculation of the amount of an applicant’s entitlement to a council tax reduction that is required.

(8) In the circumstances of a particular case the Scottish Ministers may consider it appropriate for three members of the panel appointed under regulation 90C(1) of the Council Tax Reduction Regulations to undertake the further review, and in such a case references in this regulation to anything being done or decided by a member of the panel refer to it being done or decided by all three members, or by two of them should they not be agreed.]

PART 11 S Electronic communication

Electronic communication S

71.—(1) For the purpose of these Regulations, an applicant may send a document by electronic communication—

(a) in a form approved by the relevant authority for the purposes of this regulation;

(b) to an address notified by the relevant authority for the purposes of this regulation; and

(c) by the method set out in paragraph (4).

(2) An applicant sending a document to a relevant authority by electronic communication is taken to have agreed—

(a) to the use of electronic communication for all purposes relating to the application which are capable of being carried out electronically; and

(b) that the address for the purpose of such communication is the address incorporated into, or otherwise logically associated with, that communication.

(3) Deemed agreement referred to in paragraph (2) subsists until the applicant gives notice to revoke the agreement, and the notice takes effect from the date specified in it, being a date not less than 7 working days after the date on which the notice is given.

(4) An electronic communication must be—

(a) capable of being accessed by the recipient;

(b) legible in all other material respects; and

(c) sufficiently permanent to be used for subsequent reference.

(5) Unless the contrary is proved a document sent by the method specified in paragraph (3) is, for the purposes of any legal proceedings, to be regarded as having been—

(a) delivered when the document has been delivered to or by the relevant authority and the delivery of the document has been recorded on an official computer system; and

(b) received at the time and date of receipt recorded in an official computer system.

(6) In this regulation—

“address” includes any number or address used for the purpose of electronic communication or storage;

“document” includes an application, notice, certificate, information and evidence;

“electronic communication” has the same meaning as in section 15(1) of the Electronic Communications Act 2000 M223 ;

“legible in all material respects” means that the information contained in the document is available to the recipient to no lesser extent than it would be if sent or given by means of a document in printed form; and

“official computer system” means a computer system maintained by or on behalf of the relevant authority for the sending, receiving, processing or storing of an application.

Marginal Citations

M223 2000 c.7. Section 15(1) was amended by paragraph 158 of Schedule 17 to the Communications Act 2003 (c.21).

[F28 PART 12 S Transitional provision

Textual Amendments

F28 Pt. 12 inserted (18.3.2013) by The Council Tax Reduction (State Pension Credit) (Scotland) Amendment Regulations 2013 (S.S.I. 2013/49), regs. 1, 8

Transitional provision S

72.— (1) A person described in paragraph (2) is deemed to have made an application for council tax reduction on 1st April 2013.

(2) A person referred to in paragraph (1) is a person—

(a) who is entitled to council tax benefit on 31st March 2013;

(b) who made an application for council tax benefit which is not determined before 1st April 2013;

(c) whose entitlement to council tax benefit is wholly or partly suspended immediately before 1st April 2013;

(d) other than a person described in sub-paragraphs (a) or (c), who has applied for a revision of a decision by a relevant authority under regulation 4(1) (revision of decisions) or 5(1) (late application for a revision) of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 (“the 2001 Regulations”) and whose application is pending immediately before 1st April 2013; and

(e) other than a person described in sub-paragraphs (a) or (c), who has appealed against a decision of the First-tier Tribunal, the Upper Tribunal or a court in relation to a claim for council tax benefit and whose appeal is pending immediately before 1st April 2013.

(3) For the purposes of sub-paragraph (2)(d) a revision of a decision relating to a claim for council tax benefit is pending if an application for a revision has been made but not been determined.

(4) For the purposes of paragraph (2)(e) an appeal against a decision relating to a claim for council tax benefit is pending if—

(a) an appeal against the decision has been brought but not determined;

(b) an application for permission to appeal against the decision has been made but not determined; or

(c) the time within which—

(i) an application for permission to appeal may be made; or

(ii) an appeal against the decision may be brought,

has not expired and one of the circumstances prescribed in regulation 11(3) of the 2001 Regulations apply.

(5) Where an application for council tax reduction is deemed to be made in accordance with paragraph (1) and—

(a) on 31st March 2013 the applicant by whom the application is deemed to have been made is a person to whom regulation 50(10) to (13) (date on which change of circumstances regarding non-dependants is to take effect) of the Council Tax Benefit (Persons who have attained the qualifying age for State Pension Credit) Regulations 2006 applies; and

(b) the effective date for the purposes of the change of circumstances is a date after 31st March 2013,

that application is to be determined as though the change of circumstances has not taken place and is to be re-determined on the effective date to take account of the change of circumstances.]

JOHN SWINNEY

A member of the Scottish Government

St Andrew's House,

Edinburgh