Social Security Contributions and Benefits Act 1992

Reliefs E+W+S

3 (1) For the purposes of computing the amount of profits F1 ... in respect of which Class 4 contributions are payable, relief shall be available under, and in the manner provided by, the following provisions of [F2 ITA 2007]— U.K.

(a) [F3 sections 64 and 72] (set-off of trade losses against general income), but only where loss arises from activities the profits F1 ... of which would be brought into computation for the purposes of Class 4 contributions;

F4 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) [F5 section 83] (carry-forward of loss against subsequent profits); and

(d) [F6 section 89] (carry-back of terminal losses).

(2) The following relief provisions F7 ... shall not apply, that is to say—

(a) Chapter I of Part VII [F8 of the Act of 1988 and Chapters 2 and 3 of Part 3 and sections 457, 458 and 459 of ITA 2007] (personal reliefs);

(b) [F9 section 383 of ITA 2007] (relief for payment of interest);

F10 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) [F11 sections 88 and 94 of ITA 2007] (treatment of interest as a loss for purposes of carry-forward or carry-back);

F12 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13 ...

(f) sections 619 and 620 (premiums or other consideration under annuity contracts and trust schemes); [F14 and

(g) section 639 (personal pension contributions).]

F15 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Where in the year 1990-1991 or any subsequent year of assessment for which a person claims and is allowed relief by virtue of sub-paragraph (1) above there falls to be made in computing his [F16 net income] for income tax purposes a deduction in respect of any loss in any relevant trade, profession or vocation—

(a) the amount of the deduction shall, as far as may be, be treated for the purpose of the charge to Class 4 contributions as reducing the person’s profits F17 ... for that year of any relevant trade, profession or vocation, and

(b) any excess shall be treated for that purpose as reducing such profits F17 ... for subsequent years (being deducted as far as may be from those of the immediately following year, whether or not the person claims or is entitled to claim relief under this paragraph for that year, and, so far as it cannot be so deducted, then from those of the next year, and so on).

(5) Relief shall be allowed, in respect of—

F18 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) payments under [F19 section 383 of ITA 2007] (relief for payment of interest), being payments for which relief from income tax is or can be given,

[F20 (c) payments from which a sum representing income tax must be deducted under—

(i) section 900(2) of ITA 2007 (commercial payments made by individuals),

(ii) section 903(5) of that Act (patent royalties), or

(iii) section 906(5) of that Act (certain royalties etc where usual place of abode of owner is abroad),

(d) so much of any payment from which a sum representing income tax must be deducted under section 910(2) of ITA 2007 (proceeds of a sale of patent rights: payments to non-UK residents) as is equal to the amount referred to in that provision as “the chargeable amount”, or

(e) a payment from which a sum representing income tax must be deducted as a result of a direction under section 944(2) of ITA 2007 (tax avoidance: certain payments to non-UK residents)]

[F21 so far as the payment is incurred] wholly or exclusively for the purposes of any relevant trade, profession or vocation, by way of deduction from or set-off against profits F17 ... chargeable to Class 4 contributions for the year in which the payments are made; and, in the case of any insufficiency of the profits F17 ... of that year, the payments shall be carried forward and deducted from or set off against the profits F17 ... of any subsequent year (being deducted or set off as far as may be from or against the profits F17 ... of the immediately following year, whether or not relief can be claimed under this paragraph for that year, and so far as it cannot be so deducted, from or against those of the next year, and so on).

Textual Amendments

F1 Words in Sch. 2 para. 3(1) repealed (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 422(4), Sch. 3 (with Sch. 2)

F2 Words in Sch. 2 para. 3(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(a)(i) (with Sch. 2)

F3 Words in Sch. 2 para. 3(1)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(a)(ii) (with Sch. 2)

F4 Sch. 2 para. 3(1)(b) repealed (8.9.1998) by Social Security Act 1998 (c. 14), ss. 59(3), 87(2), Sch. 8; S.I. 1998/2209, art. 2(a), Sch. Pt. 1

F5 Words in Sch. 2 para. 3(1)(c) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(a)(iii) (with Sch. 2)

F6 Words in Sch. 2 para. 3(1)(d) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(a)(iv) (with Sch. 2)

F7 Words in Sch. 2 para. 3(2) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(b)(i), Sch. 3 Pt. 1 (with Sch. 2)

F8 Words in Sch. 2 para. 3(2)(a) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(b)(ii) (with Sch. 2)

F9 Words in Sch. 2 para. 3(2)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(b)(iii) (with Sch. 2)

F10 Sch. 2 para. 3(2)(c) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(b)(iv), Sch. 3 Pt. 1 (with Sch. 2)

F11 Words in Sch. 2 para. 3(2)(d) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(b)(v) (with Sch. 2)

F12 Sch. 2 para. 3(2)(e) repealed (with effect in accordance with s. 147(3) of the amending Act) by Finance Act 1996 (c. 8), s. 147(2)(a), Sch. 41 Pt. 5(15) Note

F13 Word in Sch. 2 para. 3(2) omitted (retrospective to 1.7.1992) by Social Security (Contributions) Act 1994 (c. 1), s. 3(1)(a)(2)

F14 Sch. 2 para. 3(2)(g) and preceding word inserted (retrospective to 1.7.1992) by Social Security (Contributions) Act 1994 (c. 1), s. 3(1)(b)(2)

F15 Sch. 2 para. 3(3) omitted (with effect in accordance with s. 17(3) of the amending Act) by virtue of National Insurance Contributions Act 2014 (c. 7), s. 17(1)(a) (with s. 17(3))

F16 Words in Sch. 2 para. 3(4) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(c) (with Sch. 2)

F17 Words in Sch. 2 para. 3(4)(5) repealed (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 422(4), Sch. 3 (with Sch. 2)

F18 Sch. 2 para. 3(5)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(d)(i), Sch. 3 Pt. 1 (with Sch. 2)

F19 Words in Sch. 2 para. 3(5)(b) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 290(3)(d)(ii) (with Sch. 2)

F20 Sch. 2 para. 3(5)(c)-(e) inserted (with effect for the tax year 2007-08 and subsequent tax years) by The Income Tax Act 2007 (Amendment) Order 2010 (S.I. 2010/588), arts. 1(2), 2(3)(a)

F21 Words in Sch. 2 para. 3(5) substituted (with effect for the tax year 2007-08 and subsequent tax years) by The Income Tax Act 2007 (Amendment) Order 2010 (S.I. 2010/588), arts. 1(2), 2(3)(b)

Modifications etc. (not altering text)

C1 Sch. 2 para. 3(1) modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 2(6)

C2 Sch. 2 para. 3(1) modified (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 3(5)