xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Part 10U.K.Social security income

Chapter 1U.K.Introduction

655Structure of Part 10U.K.

(1)The structure of this Part is as follows—

Chapter 2—

(a)imposes the charge to tax on social security income, and

(b)provides for deductions to be made from the amount of income chargeable;

Chapter 3 sets out the UK social security benefits which are charged to tax under this Part and identifies—

(a)the amount of income chargeable to tax for a tax year, and

(b)the person liable to pay any tax charged;

Chapters 4 and 5 deal with exemptions from the charge to tax on UK social security benefits (whether under this Part or any other provision);

Chapters 6 and 7 make provision about foreign benefits.

[F1Chapter 8 makes provision for the high income child benefit charge.]

(2)For other provisions about the taxation of social security benefits, see—

(3)For the charge to tax on social security pensions, see Part 9 (pension income).

Textual Amendments

F1Words in s. 655(1) inserted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by Finance Act 2012 (c. 14), Sch. 1 para. 5(3)

Chapter 2U.K.Tax on social security income

656Nature of charge to tax on social security incomeU.K.

(1)The charge to tax on social security income is a charge to tax on that income excluding any exempt income.

(2)“Exempt income” is social security income on which no liability to income tax arises as a result of any provision of Chapter 4, 5 or 7 of this Part.

This definition applies for the purposes of this Part.

657Meaning of “social security income”, “taxable benefits” etc.U.K.

(1)This section defines—

(2)“Social security income” means—

(a)the United Kingdom social security benefits listed in Table A,

(b)the United Kingdom social security benefits listed in Table B,

(c)the foreign benefits to which section 678 applies, and

(d)the foreign benefits to which section 681(2) applies.

(3)“Taxable benefits” means—

(a)the United Kingdom social security benefits listed in Table A, and

(b)the foreign benefits to which section 678 applies.

(4)Subsections (2) and (3) are subject to section 660(2).

(5)“Table A” means Table A in section 660.

(6)“Table B” means Table B in section 677.

658Amount charged to taxU.K.

(1)The amount of social security income which is charged to tax under this Part for a particular tax year is as follows.

(2)In relation to a taxable benefit, the amount charged to tax is the net taxable social security income for the tax year.

(3)The net taxable social security income for a taxable benefit for a tax year is given by the formula—

where—

TSSI means the amount of taxable social security income for that benefit for that year (see subsections (4) to (7)), and

PGD means the amount of the deduction (if any) allowed from the benefit under Part 12 (payroll giving).

(4)In relation to bereavement allowance, carer’s allowance, [F3contributory employment and support allowance,] incapacity benefit and income support (which are listed in Table A), the amount of taxable social security income is determined in accordance with section 661.

(5)In relation to any other benefit listed in Table A, the amount of taxable social security income is the amount of the benefit that falls to be charged to tax.

(6)In relation to foreign benefits to which section 678 applies, the amount of taxable social security income is determined in accordance with section 679.

(7)In determining for the purposes of this Act the amount of taxable social security income, any exempt income is to be excluded.

Textual Amendments

F3Words in s. 658(4) inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 24(2); S.I. 2008/787, art. 2(1)(4)(f), Sch.

659Person liable for taxU.K.

The person liable for any tax charged under this Part is identified in—

(a)section 662 (UK benefits), or

(b)section 680 (foreign benefits).

Chapter 3U.K.Taxable UK social security benefits

660Taxable benefits: UK benefits – Table AU.K.

(1)This is Table A—

TABLE A
TAXABLE UK BENEFITS
Social security benefitPayable under
F4. . .F4. . .F4. . .
Bereavement allowance

SSCBA 1992

Section 39B

SSCB(NI)A 1992

Section 39B

Carer’s allowance

SSCBA 1992

Section 70

SSCB(NI)A 1992

Section 70

[F5[F6Employment and support allowance]

WRA 2007

Section 1(2)(a)

Any provision made for Northern Ireland which corresponds to section 1(2)(a) of WRA 2007]

Incapacity benefit

SSCBA 1992

Section 30A(1) or (5), 40 or 41

SSCB(NI)A 1992

Section 30A(1) or (5), 40 or 41

Income support

SSCBA 1992

Section 124

SSCB(NI)A 1992

Section 123

Jobseeker’s allowance

JSA 1995

Section 1

JS(NI)O 1995

Article 3

[F7[F8Statutory] paternity pay SSCBA 1992Section 171ZA or 171ZB
Any provision made for Northern Ireland which corresponds to section 171ZA or 171ZB of SSCBA 1992.]
Statutory adoption pay

SSCBA 1992

Section 171ZL

Any provision made for Northern Ireland which corresponds to section 171ZL of SSCBA 1992

Statutory maternity pay

SSCBA 1992

Section 164

SSCB(NI)A 1992

Section 160

[F9Statutory shared parental pay

SSCBA 1992

Any provision made for Northern Ireland which corresponds to section 171ZU or 171ZV of SSCBA 1992

Section 171ZU or 171ZV]
F10. . .F10. . .F10. . .
Statutory sick pay

SSCBA 1992

Section 151

SSCB(NI)A 1992

Section 147.

(2)A benefit listed below is not “social security income” or a “taxable benefit” if it is charged to tax under another Part of this Act—

Textual Amendments

F4Words in s. 660(1) Table A repealed (5.4.2015) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 62(2); S.I. 2014/1640, art. 7(jj) (with art. 16)

F5Words in s. 660 Table A inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 24(3); S.I. 2008/787, art. 2(1), Sch.; S.I. 2008/787, art. 2(4)(f)

F7Words in s. 660(1) Table A inserted (6.4.2010) by Work and Families Act 2006 (c. 18), s. 19(2), Sch. 1 para. 60(2)(4); S.I. 2010/495, art. 4(d)

F8Words in s. 660(1) Table A substituted (5.4.2015) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 62(3); S.I. 2014/1640, art. 7(jj) (with art. 16)

661Taxable social security incomeU.K.

(1)This section applies in relation to each of the following taxable benefits listed in Table A—

(2)The amount of taxable social security income for a taxable benefit for a tax year is the full amount of the benefit accruing in the tax year irrespective of when any amount is actually paid.

Textual Amendments

F15Words in s. 661 inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 24(4); S.I. 2008/787, art. 2(1)(4)(f), Sch.

662Person liable for taxU.K.

The person liable for any tax charged under this Part on a taxable benefit listed in Table A is the person receiving or entitled to the benefit.

Chapter 4U.K.Taxable UK social security benefits: exemptions

Incapacity benefitU.K.

663Long-term incapacity benefit: previous entitlement to invalidity benefitU.K.

(1)No liability to income tax arises on long-term incapacity benefit if—

(a)a person is entitled to the benefit for a day of incapacity for work which falls in a period of incapacity for work which is treated for the purposes of that benefit as having begun before 13th April 1995, and

(b)the part of that period which is treated as having fallen before that date includes a day for which that person was entitled to invalidity benefit.

(2)In this section—

664Short-term incapacity benefit not payable at the higher rateU.K.

(1)No liability to income tax arises on short-term incapacity benefit unless it is payable at the higher rate.

(2)In this section—

(a)“short-term incapacity benefit” means incapacity benefit payable under—

(i)section 30A(1) of SSCBA 1992, or

(ii)section 30A(1) of SSCB(NI)A 1992;

(b)the reference to short-term incapacity benefit payable at the higher rate is to be construed in accordance with—

(i)section 30B of SSCBA 1992, or

(ii)section 30B of SSCB(NI)A 1992.

Income supportU.K.

665Exempt unless payable to member of couple involved in trade disputeU.K.

(1)No liability to income tax arises on income support unless—

(a)the income support is payable to one member of a F16... couple (“the claimant”), and

(b)section 126 of SSCBA 1992 or section 125 of SSCB(NI)A 1992 (trade disputes) applies to the claimant but not to the other member of the couple.

(2)In this section [F17“couple” has] the same meaning as in section 137(1) of SSCBA 1992 or section 133(1) of SSCB(NI)A 1992.

Textual Amendments

F16Words in s. 665(1)(a) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 163(a)

666Child maintenance bonusU.K.

No liability to income tax arises on a part of income support which is attributable to a child maintenance bonus (within the meaning of section 10 of CSA 1995 or Article 4 of CS(NI)O 1995).

667Amounts in excess of taxable maximumU.K.

(1)If the amount of income support paid to a person (“the claimant”) for a week or a part of a week exceeds the claimant’s taxable maximum for that period, no liability to income tax arises on the excess.

(2)The claimant’s taxable maximum for a period is determined under section 668.

668Taxable maximumU.K.

(1)A claimant’s taxable maximum for a week is determined under this subsection if the applicable amount for the purpose of calculating the income support consists only of an amount in respect of the relevant couple.

The taxable maximum is equal to one half of the applicable amount.

(2)A claimant’s taxable maximum for a week is determined under this subsection if the applicable amount includes amounts that are not in respect of the relevant couple.

The taxable maximum is equal to one half of the amount which is included in the applicable amount in respect of the relevant couple.

(3)A claimant’s taxable maximum for a part of a week is determined as follows—

Step 1

Assume that the income support is paid to the claimant for the whole of, rather than part of, the week.

Step 2

Determine under subsection (1) or (2) what the claimant’s taxable maximum for that week would be on that assumption.

Step 3

Determine the claimant’s taxable maximum for the part of the week using this formula—

where—

N is the number of days in the part of the week for which the claimant is actually paid the income support, and

TMW is the taxable maximum for the whole week determined under step 2.

669InterpretationU.K.

(1)In section 668, except in relation to Northern Ireland—

(2)In section 668, in relation to Northern Ireland—

(3)In section 668 “relevant couple”, in relation to a claimant, means the F20... couple of which the claimant is a member.

Textual Amendments

F20Words in s. 669(3) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 164(c)

Jobseeker’s allowanceU.K.

670Child maintenance bonusU.K.

No liability to income tax arises on a part of a jobseeker’s allowance which is attributable to a child maintenance bonus (within the meaning of section 10 of CSA 1995 or Article 4 of CS(NI)O 1995).

671Amounts in excess of taxable maximumU.K.

(1)If the amount of jobseeker’s allowance paid to a person (“the claimant”) for a week or a part of a week exceeds the claimant’s taxable maximum for that period, no liability to income tax arises on the excess.

(2)The claimant’s taxable maximum for a period is determined under sections 672 to 674.

672Taxable maximum: generalU.K.

(1)A claimant’s taxable maximum for a week is determined—

(a)under section 673, if the claimant is paid an income-based jobseeker’s allowance for that week, or

(b)under section 674, if the claimant is paid a contribution-based jobseeker’s allowance for that week.

(2)A claimant’s taxable maximum for a part of a week is determined as follows—

Step 1

Assume that the jobseeker’s allowance is paid to the claimant for the whole of, rather than part of, the week.

Step 2

Determine under section 673 or 674 what the claimant’s taxable maximum for that week would be on that assumption.

Step 3

Determine the claimant’s taxable maximum for the part of the week using this formula—

where—

N is the number of days in the part of the week for which the claimant is actually paid the jobseeker’s allowance, and

TMW is the taxable maximum for the whole week determined under step 2.

673Taxable maximum: income-based jobseeker’s allowanceU.K.

(1)A claimant’s taxable maximum for a week is determined under this section if—

(a)the claimant is paid an income-based jobseeker’s allowance for that week, or

(b)the claimant is assumed under section 672(2) to be paid an income-based jobseeker’s allowance for that week.

(2)If the claimant is not a member of a F21... couple, the claimant’s taxable maximum for the week is equal to the age-related amount which would be applicable to the claimant if a contribution-based jobseeker’s allowance were payable to the claimant for that week.

(3)If the claimant is a member of a F22... couple, the claimant’s taxable maximum for the week is equal to the portion of the applicable amount which is included in the jobseeker’s allowance in respect of the couple for that week.

(4)But if—

(a)the claimant is a member of a F23... couple, and

(b)the other member of that couple is prevented by section 14 of JSA 1995 or Article 16 of JS(NI)O 1995 (trade disputes) from being entitled to a jobseeker’s allowance,

the claimant’s taxable maximum for that week is equal to half the portion of the applicable amount which is included in the jobseeker’s allowance in respect of the couple for that week.

Textual Amendments

F21Words in s. 673(2) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 165

F22Words in s. 673(3) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 165

F23Words in s. 673(4)(a) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 165

674Taxable maximum: contribution-based jobseeker’s allowanceU.K.

(1)A claimant’s taxable maximum for a week is determined under this section if—

(a)the claimant is paid a contribution-based jobseeker’s allowance for that week, or

(b)the claimant is assumed under section 672(2) to be paid a contribution-based jobseeker’s allowance for that week.

(2)If the claimant is not a member of a F24... couple, the claimant’s taxable maximum for the week is equal to the age-related amount which is applicable to the claimant for that week.

(3)If the claimant is a member of a F25... couple, the claimant’s taxable maximum for the week is equal to the portion of the applicable amount which would be included in the jobseeker’s allowance in respect of the couple if an income-based jobseeker’s allowance were payable to the claimant for that week.

Textual Amendments

F24Words in s. 674(2) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 166

F25Words in s. 674(3) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 166

675InterpretationU.K.

(1)In sections 671 to 674, except in relation to Northern Ireland—

(2)In sections 671 to 674, in relation to Northern Ireland—

Textual Amendments

Increases in respect of childrenU.K.

676Increases in respect of childrenU.K.

No liability to income tax arises on a part of a taxable benefit listed in Table A which is attributable to an increase in respect of a child.

Chapter 5U.K.UK social security benefits wholly exempt from income tax

677UK social security benefits wholly exempt from tax: Table BU.K.

(1)No liability to income tax arises on the United Kingdom social security benefits listed in Table B.

TABLE B—PART 1
BENEFITS PAYABLE UNDER PRIMARY LEGISLATION
Social security benefitPayable under
Attendance allowance

SSCBA 1992

SSCB(NI)A 1992

Section 64

Section 64

Back to work bonus

JSA 1995

JS(NI)O 1995

Section 26

Article 28

Bereavement payment

SSCBA 1992

SSCB(NI)A 1992

Section 36

Section 36

[F29Bereavement support payment

PA 2014

Any provision made for Northern Ireland which corresponds to section 30 of PA 2014

Section 30]

Child benefit

SSCBA 1992

SSCB(NI)A 1992

Section 141

Section 137

Child’s special allowance

SSCBA 1992

SSCB(NI)A 1992

Section 56

Section 56

Child tax credit

TCA 2002

Part 1

Council tax benefit

SSCBA 1992

Section 131

Disability living allowance

SSCBA 1992

SSCB(NI)A 1992

Section 71

Section 71

Guardian’s allowance

SSCBA 1992

SSCB(NI)A 1992

Section 77

Section 77

[F30Health in pregnancy grant

SSCBA 1992

SSCB(NI)A 1992

Section 140A

Section 136A]

Housing benefit

SSCBA 1992

SSCB(NI)A 1992

Section 130

Section 129

[F31In-work credit

ETA 1973

ETA(NI) 1950

Section 2

Section 1

In-work emergency discretion fund payment

ETA 1973

Section 2

In-work emergency fund payment

ETA(NI) 1950

Section 1]

[F32Income-related employment and support allowance

WRA 2007

Section 1(2)(b)

Any provision made for Northern Ireland which corresponds to section 1(2)(b) of WRA 2007]
Industrial injuries benefit (apart from industrial death benefit)

SSCBA 1992

SSCB(NI)A 1992

Section 94

Section 94

Pensioner’s Christmas bonus

SSCBA 1992

SSCB(NI)A 1992

Section 148

Section 144

[F33Personal independence payment WRA 2012Section 77
Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012]
Payments out of the social fund

SSCBA 1992

SSCB(NI)A 1992

Section 138

Section 134

[F31Return to work credit

ETA 1973

ETA(NI) 1950

Section 2

Section 1]

Severe disablement allowance

SSCBA 1992

SSCB(NI)A 1992

Section 68

Section 68

[F34State maternity allowance SSCBA 1992 Section 35 or 35B
Any provision made for Northern Ireland which corresponds to section 35 or 35B of SSCBA 1992]
State pension credit

SPCA 2002

SPCA(NI) 2002

Section 1

Section 1

[F35Universal credit WRA 2012Part 1
Any provision made for Northern Ireland which corresponds to Part 1 of WRA 2012]
Working tax credit

TCA 2002

Part 1

TABLE B — PART 2
BENEFITS PAYABLE UNDER REGULATIONS
Social security benefitPayable under regulations made under
F36. . .

F36...

F36...

F36. . .
Payments to reduce under-occupation by housing benefit claimants

WRPA 1999

WRP(NI)O 1999

Section 79

Article 70

(2)Industrial death benefit is charged to tax under Part 9 (see section 577).

(3)In this section “industrial death benefit” means any benefit payable under—

(a)section 94 of, and Part 6 of Schedule 7 to, SSCBA 1992, or

(b)section 94 of, and Part 6 of Schedule 7 to, SSCB(NI)A 1992.

Textual Amendments

F29Words in s. 677(1) inserted (with effect in accordance with s. 16(4) of the amending Act) by Finance Act 2015 (c. 11), s. 16(2)

F30Words in s. 677(1) Table B Pt. 1 inserted (1.1.2009) by Health and Social Care Act 2008 (c. 14), ss. 138(4), 170(3)(4); S.I. 2008/3137, art. 2

F31Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with s. 46(3) of the amending Act) by Finance Act 2008 (c. 9), s. 46(1)

F32Words in s. 677(1) Table B Pt. 1 inserted (18.3.2008 for specified purposes) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 24(5); S.I. 2008/787, art. 2(1), Sch.

F33Words in s. 677(1) Table B Pt. 1 inserted (8.4.2013 for specified purposes, 10.6.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 9 para. 49; S.I. 2013/358, art. 7(1)(2)(k), Sch. 3; S.I. 2013/1250, art. 2

F35Words in s. 677(1) Table B Pt. 1 inserted (with effect in accordance with s. 13(2) of the amending Act) by Finance Act 2013 (c. 29), s. 13(1)

F36Words in s. 677(1) Table B Pt. 2 repealed (22.7.2004) by Finance Act 2004 (c. 12), Sch. 17 para. 9(5), Sch. 42 Pt. 2(12)

Chapter 6U.K.Taxable foreign benefits

678Taxable benefits: foreign benefitsU.K.

(1)This section applies to any benefit which is payable under the law of a country or territory outside the United Kingdom if—

(a)it is substantially similar in character to a benefit listed in Table A, and

(b)it is payable to a person resident in the United Kingdom.

(2)But this section does not apply to a benefit which is charged to tax under Part 9 (pension income).

679Taxable social security incomeU.K.

(1)If section 678 applies, the taxable social security income for a taxable benefit for a tax year is [F37the full amount of the social security income arising in the tax year, but subject to subsection (2).]

[F38(2)That income is treated as relevant foreign income for the purposes of Chapters 2 and 3 of Part 8 of ITTOIA 2005 (relevant foreign income: remittance basis and deductions and reliefs).

(3)See also Chapter 4 of that Part (unremittable income).]

Textual Amendments

F38S. 679(2)(3) substituted for s. 679(2) (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 613(3) (with Sch. 2)

680Person liable for taxU.K.

The person liable for any tax charged under this Part on a benefit to which section 678 applies is the person receiving or entitled to the benefit.

Chapter 7U.K.Taxable and other foreign benefits: exemptions

681Taxable and other foreign benefits: exemptionsU.K.

(1)No liability to income tax arises on a taxable foreign benefit if, or to the extent that, the corresponding UK benefit is exempt income.

(2)No liability to income tax arises on a benefit which is payable under the law of a country or territory outside the United Kingdom if it is substantially similar in character to a United Kingdom social security benefit listed in Table B.

(3)In this section—

[F39681AForeign benefits of consular employeesU.K.

(1)No liability to income tax arises in respect of any benefit to which section 678 applies of a consular officer or employee in the United Kingdom for a foreign state if—

(a)Her Majesty by Order in Council directs that this section applies to the foreign state for the purpose of giving effect to a reciprocal arrangement with that state, and

(b)the officer or employee meets conditions A to C.

(2)Condition A is that the officer or employee is not—

(a)a British citizen,

(b)a British overseas territories citizen,

(c)a British National (Overseas), or

(d)a British Overseas citizen.

(3)Condition B is that the officer or employee is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as a consular officer or employee of the state in question.

[F40(4)Condition C is that—

(a)the officer or employee is a permanent employee of that state, or

(b)the officer or employee was non-UK resident for each of the 2 tax years preceding the tax year in which the officer or employee became a consular officer or employee in the United Kingdom of that state.]

(5)In this section—

(6)Section 302(5) to (7) apply to an Order under subsection (1) and the operation of this section as they apply to an Order under section 302(1) and the operation of section 302.]

Textual Amendments

F40S. 681A(4) substituted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 39(1) (with Sch. 46 para. 39(2))

[F41CHAPTER 8U.K.High income child benefit charge

Textual Amendments

F41Pt. 10 Ch. 8 inserted (with effect in accordance with Sch. 1 para. 7 of the amending Act) by Finance Act 2012 (c. 14), Sch. 1 para. 1

681BHigh income child benefit chargeU.K.

(1)A person (“P”) is liable to a charge to income tax for a tax year if—

(a)P's adjusted net income for the year exceeds £50,000, and

(b)one or both of conditions A and B are met.

(2)The charge is to be known as a “high income child benefit charge”.

(3)Condition A is that—

(a)P is entitled to an amount in respect of child benefit for a week in the tax year, and

(b)there is no other person who is a partner of P throughout the week and has an adjusted net income for the year which exceeds that of P.

(4)Condition B is that—

(a)a person (“Q”) other than P is entitled to an amount in respect of child benefit for a week in the tax year,

(b)Q is a partner of P throughout the week, and

(c)P has an adjusted net income for the year which exceeds that of Q.

681CThe amount of the chargeU.K.

(1)The amount of the high income child benefit charge to which a person (“P”) is liable for a tax year is the appropriate percentage of the total of—

(a)any amounts in relation to which condition A is met, and

(b)any amounts in relation to which condition B is met.

For conditions A and B, see section 681B.

(2)“The appropriate percentage” is—

(a)100%, or

(b)if less, the percentage determined by the formula—

Where—

ANI is P's adjusted net income for the tax year;

L is £50,000;

X is £100.

(3)If—

(a)the total of the amounts mentioned in paragraphs (a) and (b) of subsection (1), or the amount of the charge determined under that subsection, is not a whole number of pounds, or

(b)the percentage determined under subsection (2)(b) is not a whole number,

it is to be rounded down to the nearest whole number.

681DExtension of charge in cases where child not living with claimantU.K.

(1)This section applies where—

(a)a person (“R”) is entitled to an amount in respect of child benefit for a child for a week in a tax year by virtue of section 143(1)(b) of SSCBA 1992 or section 139(1)(b) of SSCB(NI)A 1992 (persons contributing to the cost of providing for a child),

(b)neither R, nor any person who is a partner of R throughout that week, is liable for a charge to income tax in respect of that amount under section 681B, and

(c)there is another person (“S”) who, for the purposes of section 143(1)(a) of SSCBA 1992 or section 139(1)(a) of SSCB(NI)A 1992 (persons with whom child is living), is a person who has the child living with him or her in that week.

(2)Section 681B applies as if S were entitled to the amount of child benefit mentioned in subsection (1)(a).

(3)Where there is more than one person to whom subsection (1)(c) applies in relation to an amount of child benefit for a week, subsection (2) applies only to the one with the highest adjusted net income for the tax year.

(4)For the purposes of subsection (1)(a), an amount of child benefit to which R is entitled for a week is to be ignored if—

(a)the period (which includes that week) for which R is entitled to child benefit by virtue of section 143(1)(b) of SSCBA 1992 or section 139(1)(b) of SSCB(NI)A 1992 in respect of the same child does not exceed 52 weeks, and

(b)R is entitled to child benefit in respect of the child for the week immediately before and the week immediately after that period by virtue of section 143(1)(a) of SSCBA 1992 or section 139(1)(a) of SSCB(NI)A 1992.

(5)In this section “child” means—

(a)a child within the meaning of section 142 of SSCBA 1992 or section 138 of SSCB(NI)A 1992, or

(b)a qualifying young person within the meaning of either of those sections.

681ESpecial casesU.K.

(1)The following amounts are to be disregarded for the purposes of this Chapter—

(a)amounts to which a person is entitled but in respect of which an election under section 13A of the Social Security Administration Act 1992 or section 11A of the Social Security Administration (Northern Ireland) Act 1992 (election for payment of child benefit not to be made if high income child benefit charge would be triggered) has effect;

(b)amounts to which a person is entitled by virtue of section 145A of SSCBA 1992 or section 141A of SSCB(NI)A 1992 (entitlement to child benefit after death of child or qualifying young person).

(2)Subsection (3) applies if—

(a)a person (“T”) is entitled to an amount in respect of child benefit for a week in a tax year or is treated as so entitled by virtue of section 681D(2),

(b)two or more other persons are partners of T throughout the week, and

(c)two or more of those persons would, apart from subsection (3), each be liable to a charge under section 681B(1) in relation to that amount.

(3)Only one of those persons is liable, namely the person with the highest adjusted net income for the tax year.

681FAlteration of income limit etc by Treasury orderU.K.

(1)The Treasury may by order—

(a)substitute another amount for the amount for the time being specified in section 681B(1)(a) and defined as “L” in section 681C(2), or

(b)substitute another amount for the amount defined as “X” in section 681C(2).

(2)An order under this section has effect for tax years beginning after the order is made.

(3)A statutory instrument containing an order under this section which increases any person's liability to income tax may not be made unless a draft of it has been laid before and approved by a resolution of the House of Commons.

681GMeaning of “partner”U.K.

(1)For the purposes of this Chapter a person is a “partner” of another person at any time if any of conditions A to D is met at that time.

(2)Condition A is that the persons are a man and a woman who are married to each other and are neither—

(a)separated under a court order, nor

(b)separated in circumstances in which the separation is likely to be permanent.

(3)Condition B is that the persons are a man and a woman who are not married to each other but are living together as husband and wife.

(4)Condition C is that the persons are two men, or two women, who are civil partners of each other and are neither—

(a)separated under a court order, nor

(b)separated in circumstances in which the separation is likely to be permanent.

(5)Condition D is that the persons are two men, or two women, who are not civil partners of each other but are living together as if they were civil partners.

681HOther interpretation provisionsU.K.

(1)This section applies for the purposes of this Chapter.

(2)“Adjusted net income” of a person for a tax year means the person's adjusted net income for that tax year as determined under section 58 of ITA 2007.

(3)“Week” means a period of 7 days beginning with a Monday; and a week is in a tax year if (and only if) the Monday with which it begins is in the tax year.]