Part 10U.K.Social security income

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

Modifications etc. (not altering text)

Jobseeker’s allowance [F1and relevant welfare supplementary payments] U.K.

Textual Amendments

F1Words in s. 670 cross-heading inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Taxation of Northern Ireland Welfare Supplementary Payments Regulations 2017 (S.I. 2017/338), regs. 1, 12

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 [F2and relevant welfare supplementary payments] 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.

Textual Amendments

F2Words in s. 671(1) inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Taxation of Northern Ireland Welfare Supplementary Payments Regulations 2017 (S.I. 2017/338), regs. 1, 13

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 F3... 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 F4... 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 F5... 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

F3Words 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

F4Words 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

F5Words 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 F6... 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 F7... 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

F6Words 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

F7Words 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.

[F8(A1)In section 671 “relevant welfare supplementary payments” means payments to which a person is entitled under–

(a)regulation 8 (when the recipient is entitled to the payment by meeting the condition in regulation 8(2)(a)) of WSP(LCP)R(NI) 2016, or

(b)regulation 11, 12, 13, 14 or 15 of WSP(LDRP)R(NI) 2016.]

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

  • “age-related amount” and “applicable amount” mean the amounts determined as such in accordance with regulations made under section 4 of JSA 1995;

  • F9...

  • [F10“contribution-based jobseeker’s allowance” means a jobseeker’s allowance entitlement to which is based on the claimant satisfying conditions which include those set out in Article 4 of the JS(NI)O 1995;]

  • F9...

  • [F10“income-based jobseeker’s allowance” means a jobseeker’s allowance entitlement to which is based on the claimant satisfying conditions which include those set out in Article 5 of the JS(NI)O 1995 or a joint-claim jobseeker’s allowance (which means a jobseeker’s allowance entitlement to which arises by virtue of Article 3(2B) of the JS(NI)O 1995);]

  • [F11“couple” has the same meaning as in section 35(1) of JSA 1995]

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

  • “age-related amount” and “applicable amount” mean the amounts determined as such in accordance with regulations made under Article 6 of JS(NI)O 1995;

  • “contribution-based jobseeker’s allowance” and “income-based jobseeker’s allowance” have the same meaning as in Article 3(4) of JS(NI)O 1995;

  • [F12“couple” has the same meaning as in Article 2(2) of JS(NI)O 1995]

Textual Amendments

F8S. 675(A1) inserted (with effect in accordance with reg. 2 of the amending S.I.) by The Taxation of Northern Ireland Welfare Supplementary Payments Regulations 2017 (S.I. 2017/338), regs. 1, 14

F9Words in s. 675(2) omitted (coming into force in accordance with reg. 1(1) of the amending Rule) by virtue of The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations (Northern Ireland) 2016 (S.R. 2016/236), regs. 1(1), 12(3)(a)