5(1)The assessable income of an absent parent shall be calculated by applying the formula—E+W+S
where—
A is the amount of that parent’s assessable income;
N is the amount of that parent’s net income, calculated or estimated in accordance with regulations made by the Secretary of State for the purposes of this sub-paragraph; and
E is the amount of that parent’s exempt income, calculated or estimated in accordance with regulations made by the Secretary of State for those purposes.
(2)The assessable income of a parent who is a person with care of the qualifying child or children shall be calculated by applying the formula—
where—
C is the amount of that parent’s assessable income;
M is the amount of that parent’s net income, calculated or estimated in accordance with regulations made by the Secretary of State for the purposes of this sub-paragraph; and
F is the amount of that parent’s exempt income, calculated or estimated in accordance with regulations made by the Secretary of State for those purposes.
(3)Where the preceding provisions of this paragraph would otherwise result in a person’s assessable income being taken to be a negative amount his assessable income shall be taken to be nil.
(4)Where income support[F1, an income-based jobseeker’s allowance] or any other benefit of a prescribed kind is paid to or in respect of a parent who is an absent parent or a person with care that parent shall, for the purposes of this Schedule, be taken to have no assessable income.
Textual Amendments
F1Words in Sch. 1 para. 5(4) inserted (7.10.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 20(7); S.I. 1996/2208, art. 2(b)
Commencement Information
I1Sch. 1 para. 5 wholly in force; para. 5 not in force at Royal Assent see s. 58(2); para. 5(1)(2)(4) in force at 17.6.1992 by S.I. 1992/1431, art. 2, Sch.; para. 5 in force in so far as not already in force at 5.4.1993 by S.I. 1992/2644, art. 2