The Family Credit (General) Regulations 1987

PART I U.K. GENERAL

Citation and commencement U.K.

1.  These Regulations may be cited as the Family Credit (General) Regulations 1987, and shall come into force on 11th April 1988.

Interpretation U.K.

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

“the Act” means the Social Security Act 1986;

[F1 “appropriate officer” means the Board or, as the case may be, an officer of the Board;]

[F2 “assessment period” means, in the case of an employed earner, a period determined in accordance with [F3 regulation 14 or, as the case may be, 14A] and, in the case of a self- employed earner, a period determined in accordance with regulation 15];

[F4 “the benefit Acts ” means the Contributions and Benefits Act and the Jobseekers Act 1995; ]

[F5 “the Board” means the Commissioners of Inland Revenue;]

[F6 “the Children Order ” means the Children (Northern Ireland) Order 1995; ]

“claim” means a claim for [F7 working families' tax credit];

“claimant” means a person claiming [F7 working families' tax credit];

“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 the spouse of any of the preceding persons or, if that person is one of an unmarried couple, the other member of that couple;

[F8 “community charge benefit” means community charge benefits under Part VII of the Contributions and Benefits Act as originally enacted; ]

“concessionary payment” means a payment made under arrangements made by the Secretary of State with the consent of the Treasury which is charged either to the National Insurance Fund or to a Departmental Expenditure Vote to which payments of benefit under the Act, the Social Security Act or the Child Benefit Act 1975 M1 are charged;

[F9 “the Contributions and Benefits Act ” means the Social Security Contributions and Benefits Act 1992; ]

[F10 “Crown property” means property held by Her Majesty in right of the Crown or by a government department or which is held in trust for Her Majesty for the purposes of a government department, except (in the case of an interest held by Her Majesty in right of the Crown) where the interest is under the management of the Crown Estate Commissioners [F11 or a relevant person];]

[F12 “Crown servant posted overseas” means a person performing the duties of any office or employment under the Crown in right of the United Kingdom who is, or was prior to his posting, ordinarily resident in the United Kingdom;]

“date of claim” means the date on which the claimant makes, or is treated as making, a claim for [F7 working families' tax credit];

[F13 “director” means a director of a company, and for this purpose “company” means a company within the meaning of section 735(1) of the Companies Act 1985 or a body corporate to which, by virtue of section 718 of that Act, any provision of that Act applies;]

[F14 “disability living allowance” means a disability living allowance under section 37ZA of the Social Security Act;]

[F15 “the Disability Working Allowance Regulations” means the Disability Working Allowance (General) Regulations 1991;

“disabled person’s tax credit” means a disabled person’s tax credit under section 129 of the Contributions and Benefits Act;]

“earnings” has the meaning prescribed in regulation 19 or, as the case may be, 21;

[F16 “earnings top-up” means the allowance paid by the Secretary of State under the Earnings Top-up Scheme ; ]

[F17 “the Earnings Top-up Scheme ” means the Earnings Top-up Scheme 1996; ]

“employed earner” shall be construed in accordance with section 2(1)(a) of the Social Security Act M2 ;

[F18 “employment zones” means an area within Great Britain designated by the Employment Zones Regulations 2000 for the purposes of section 60 of the Welfare Reform and Pensions Act 1999 and an “employment zone programme” means a programme established for an employment zone or zones designed to assist claimants for a jobseeker’s allowance to obtain sustainable employment;]

[F18 “employment zone contractor” means a person who is undertaking the provision of facilities in respect of an employment zone programme on behalf of the Secretary of State for Education and Employment;]

[F19 “extra statutory maternity pay” means a payment or payments made by an employer to an employee during a maternity pay period in order to supplement statutory maternity pay that is paid to that employee for that period;]

[F20 “Intensive Activity Period for 50 plus” means the programme known by that name and provided in pursuance of arrangements made by or on behalf of the Secretary of State under section 2 of the Employment and Training Act 1973, being a programme lasting for up to 52 weeks for any one individual aged 50 years or over on the day that he or she first joined any such programme, and consisting for that individual of any one or more of the following elements, namely assistance in pursuing self-employed earner’s employment, education and training, work experience, assistance with job search, motivation and skills training;]

[F21 “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;]

[F22 “lower rate” where it relates to rates of tax has the same meaning as in the Income and Corporation Taxes Act 1988 by virtue of section 832(1) of that Act;]

[F23 “maternity allowance” has the meaning given by section 35 of the Contributions and Benefits Act;]

[F24 “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 either under the terms of her contract of employment or under Part III of the Employment Protection (Consolidation) Act 1978;]

“mobility allowance” means an allowance under section 37A of the Social Security Act M3 ;

“mobility supplement” means any supplement under article 26A of the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 1983 M4 including such a supplement by virtue of any other scheme or order or under article 25A of the Personal Injuries (Civilians) Scheme 1983 M5 ;

“net earnings” means such earnings as are calculated in accordance with regulation 20;

“net profit” means such profit as is calculated in accordance with regulation 22;

[F25 “New Deal option” means any of the employment programmes specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996 and the training scheme specified in regulation 75(1)(b)(ii) of those Regulations;]

“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;

“partner” means, where a claimant—

(a)

is a member of a married or unmarried couple, the other member of that couple,

(b)

is married polygamously to two or more members of the same household, any such member;

[F26 “paternity leave” means leave under section 80A of the Employment Rights Act 1996.]

[F27 “pay period” has the meaning given in regulation 14(7)(b);]

“payment” includes a part of a payment;

[F28 “pension fund holder” means with respect to a personal pension scheme or retirement annuity contract, the trustees, managers or scheme administrators, as the case may be, of the scheme or contract concerned;]

[F29 “personal pension scheme” has the same meaning as in [F30 section 1 of the Pension Schemes Act 1993] and, in the case of a self-employed earner, includes a scheme approved by the Inland Revenue under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988; ]

“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;

[F31 “Primary Care Trust” means a Primary Care Trust established under section 16A of the National Health Service Act 1977;]

[F32 “qualifying person” means a person in respect of whom payment has been made from the Fund [F33 or the Eileen Trust];]

[F34 “relevant person”, in relation to any property, rights or interests to which section 90B(5) of the Scotland Act 1998 applies, means the person who manages that property or those rights or interests;]

[F35 “retirement annuity contract” means a contract or trust scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988; ]

“self-employed earner” shall be construed in accordance with section 2(1)(b) of the Social Security Act;

[F36 “self-employment route” means—

(a)

that part of the Employment Option of the New Deal which is specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996; or

(b)

assistance in pursuing self-employed earner’s employment while participating in—

(i)

an employment zone programme; or

(ii)

a course of training or instruction funded by or on behalf of the Secretary of State for Education and Employment, the National Assembly for Wales, or the Scottish Enterprise or Highlands or Islands Enterprise; or

(iii)

the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996 or the Intensive Activity Period for 50 plus;]

“Social Security Act” means the Social Security Act 1975 M6

[F37 “sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 1993 out of sums allocated to it for distribution under that section; ]

[F38 “statutory maternity pay” and “maternity pay period” shall be construed in accordance with Part XII of the Contributions and Benefits Act;]

[F39 “statutory paternity pay” means any payment under section 171ZA of the Contributions and Benefits Act;]

“student” has the meaning prescribed in regulation 37;

[F18 “subsistence allowance” means an allowance which an employment zone contractor has agreed to pay to a person who is participating in an employment zone programme, which is equal to the amount of income-based jobseeker’s allowance which that person would have received in a benefit week had it been payable to him, less 50p;]

[F40 “surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 1990 [F41 (parental orders) or section 54 of the Human Fertilisation and Embryology Act 2008 (parental orders)];]

[F42 “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;]

[F43 “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 him on 24th April 1992 or, in Scotland, on 10th April 1992;]

[F44 “the Independent Living (Extension) Fund” means the Trust of that name established by a deed dated 25th February 1993 and made between the Secretary of State for Social Security of the one part and Robin Glover Wendt and John Fletcher Shepherd of the other part;]

[F45 “the Independent Living Fund” means the charitable trust established out of funds provided by the Secretary of State for the purpose of providing financial assistance to those persons incapacitated by or otherwise suffering from very severe disablement who are in need of such assistance to enable them to live independently;]

[F46 “the Independent Living Funds” means the Independent Living Fund, the Independent Living (Extension) Fund and the Independent Living (1993) Fund;]

[F47 “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;]

[F48 “the Macfarlane (Special Payments) ( No. 2) Trust” means the trust of that name, established on 3rd May 1991 partlyout of funds provided by the Secretary of State, for the benefit ofcertain persons suffering from haemophilia and other beneficiaries;]

[F49 “the Macfarlane Trust” means the charitable trust, established partly out of funds provided by the Secretary of State to the Haemophilia Society, for the relief of poverty or distress among those suffering from haemophilia;]

[F50 “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 [F51 , the Learning and Skills Council for England, or the National Assembly for Wales], Scottish Enterprise or Highlands and Islands Enterprise;

(b)

to a person for his maintenance or in respect of a member of his family; and

(c)

for the period, or part of the period, during which he 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 him or so provided or approved by or on behalf of the Secretary of State [F52 , the National Assembly for Wales], Scottish Enterprise or Highlands and Islands Enterprise,

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 he is following a course of full-time education, other than under arrangements made under section 2 of the Employment and Training Act 1973, or is training as a teacher;]

[F53 “voluntary organisation” means a body, other than a public or local authority, the activities of which are carried on otherwise than for profit;]

[F54 “water charges” means—

(a)

as respects England and Wales, any water and sewerage charges under Chapter I of Part V of the Water Industry Act 1991;

(b)

as respects Scotland, any water and sewerage charges under Schedule 11 to the Local Government Finance Act 1992;]

“week” means a period of seven days beginning with midnight between Saturday and Sunday;

“week of claim” means the week which includes the date of claim;

[F55 “working families' tax credit” means working families' tax credit under section 128 of the Contributions and Benefits Act;]

“year of assessment” has the same meaning prescribed in section 526(5) of the Income and Corporation Taxes Act 1970 M7 ;

“young person” has the meaning prescribed in regulation 6.

(2) Unless the context otherwise requires, any reference in these Regulations to a numbered regulation, Part or Schedule is a reference to the regulation, Part or Schedule bearing that number in these Regulations and any reference in a regulation or Schedule to a numbered paragraph is a reference to the paragraph in that regulation or Schedule bearing that number.

Textual Amendments

F1 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 3(a)

F2 Words in reg. 2(1) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 2(a)

F3 Words in reg. 2(1) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 10(a)

F4 Words in reg. 2(1) inserted (7.10.1996) by The Social Security and Child Support (Jobseeker’s Allowance) (Consequential Amendments) Regulations 1996 (S.I. 1996/1345), regs. 1, 8(2)

F5 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 3(b)

F6 Words in reg. 2(1) inserted (1.4.1998 coming into force in accordance with reg. 1(2)(3)(4)(5)(6)) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1, 5(1), (2)(c)

F7 Words in reg. 2(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(i)

F8 Words in reg. 2(1) inserted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 10(a)

F9 Words in reg. 2(1) inserted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 10(b)

F10 Words in reg. 2(1) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.4) Regulations 1994 (S.I. 1994/1924), regs. 1(2)(a), 4(2)(a)

F11 Words in reg. 2(1) inserted (1.4.2017) by The Crown Estate Transfer Scheme 2017 (S.I. 2017/524), art. 1(2), Sch. 5 para. 66(a)

F12 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 4

F13 Words in reg. 2(1) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 10(b)

F14 Words in reg. 2(1) inserted (6.4.1992) by The Disability Living Allowance and Disability Working Allowance (Consequential Provisions) Regulations 1991 (S.I. 1991/2742), regs. 1(1), 13(2)

F15 Words in reg. 2(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 3(c)

F16 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs 1(1)(a), (4), 13, Sch. para. 1 and 2(c)

F17 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs 1(1)(a), (4), 13, Sch. para. 1 and 2(c)

F18 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 2(1), (2)(b)

F19 Words in reg. 2 inserted (4.4.2001) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 11(2)

F20 Words in reg. 2(1) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 4(a)

F21 Words in reg. 2(1) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.4) Regulations 1994 (S.I. 1994/1924), regs. 1(2)(a), 4(2)(b)

F22 Words in reg. 2(1) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 4

F23 Words in reg. 2 inserted (4.4.2001) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 11(3)

F24 Words in reg. 2(1) inserted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 25(a)

F25 Words in reg. 2(1) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 4(b)

F26 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 8(2)

F27 Words in reg. 2(1) inserted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 2(b)

F28 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(2)(a)

F29 Words in reg. 2(1) inserted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 25(b)

F30 Words in reg. 2(1) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(2)(b)

F31 Words in reg. 2(1) inserted (1.10.2002) by The National Health Service Reform and Health Care Professions Act 2002 (Supplementary, Consequential etc. Provisions) Regulations 2002 (S.I. 2002/2469), reg. 1, 11, Sch. 8

F32 Words in reg. 2(1) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(2)(a)

F33 Words in reg. 2(1) inserted (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 2(2)(a)

F34 Words in reg. 2(1) inserted (1.4.2017) by The Crown Estate Transfer Scheme 2017 (S.I. 2017/524), art. 1(2), Sch. 5 para. 66(b)

F35 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(2)(c)

F36 Words in reg. 2(1) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 4(c)

F37 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Sports Awards) Regulations 1999 (S.I. 1999/2165), regs. 1(1), 2(2)(c)

F38 Words in reg. 2 inserted (4.4.2001) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 11(4)

F39 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 8(3)

F40 Words in reg. 2 inserted (4.4.2001) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 11(5)

F41 Words in reg. 2(1) inserted (6.4.2010) by The Human Fertilisation and Embryology (Parental Orders) (Consequential, Transitional and Saving Provisions) Order 2010 (S.I. 2010/986), art. 1(1), Sch. para. 1

F42 Words in reg. 2(1) inserted (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 2(2)(b)

F43 Words in reg. 2(1) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(2)(b)

F44 Words in reg. 2(1) inserted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1(1)(d), 3(2)

F45 Words in reg. 2(1) inserted (9.6.1988) by Family Credit and Income Support (General) Amendment Regulations 1988 (S.I. 1988/999), reg. 1(1), 2

F46 Words in reg. 2(1) inserted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1(1)(d), 3(2)

F47 Words in reg. 2(1) inserted (31.1.1990) by Income-related Benefits Schemes Amendment Regulations 1990 (S.I. 1990/127), reg. 1(1), 2

F48 Words in reg. 2(1) inserted (31.1.1990) by Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1991 (S.I. 1991/1175), reg. 1(1), 3(2)

F49 Words in reg. 2(1) inserted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 2

F50 Words in reg. 2(1) inserted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 2(c)

F51 Words in reg. 2 inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 4) Regulations 2001 (S.I. 2001/1082), regs. 1(1), 4(a)

F52 Words in reg. 2 inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 4) Regulations 2001 (S.I. 2001/1082), regs. 1(1), 4(b)

F53 Words in reg. 2(1) inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 10

F54 Words in reg. 2(1) inserted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 10(c)

F55 Words in reg. 2(1) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 3(d)

Modifications etc. (not altering text)

C1 Reg. 2(1) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 12(1), (2)(c)

Marginal Citations

M1 1975 c. 61.

M2 1975 c. 14.

M3 Section 37A was inserted by section 22(1) of the Social Security Pensions Act 1975 (c. 60) and amended by the National Health Service Act 1977 (c. 49) Schedule 15 paragraph 64, the Social Security Act 1979 (c. 18) section 3 and by the Social Security Act 1986 (c. 50) sections 71 and 86 and Schedule 11.

M4 S.I. 1983/883; article 26A was added by S.I. 1983/1116 and amended by S.I. 1983/1521 and 1986/592.

M5 S.I. 1983/686, amended by S.I. 1983/1164, 1540 and 1986/628.

M6 1975 c. 14.

M7 1970 c. 10.

[F56 Disapplication of section 1(1A) of the Administration Act U.K.

2A.   Section 1(1A) of the Administration Act (requirement to state national insurance number) shall not apply—

(a) to a child or young person in respect of whom [F57 working families' tax credit] is claimed;

(b) to any claim for [F57 working families' tax credit] made or treated as made before 9th February 1998;

(c) to a partner in respect of whom a claim for [F57 working families' tax credit] is made or treated as made before 5th October 1998.]

[F58 (d) to a partner of a Crown servant posted overseas who has no national insurance number and is not a UK national.]

Textual Amendments

F56 Reg. 2A inserted (1.12.1997) by The Social Security (National Insurance Number Information: Exemption) Regulations 1997 (S.I. 1997/2676), regs. 1(1), 6

F57 Words in reg. 2A substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(ii)

F58 Reg. 2A(d) added (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 5

PART II U.K. PRESENCE IN GREAT BRITAIN AND REMUNERATIVE WORK

Circumstances in which a person is treated as being or as not being in Great Britain U.K.

3.—(1) A person shall be treated as being in Great Britain if, on the date of claim—

(a) he is present and ordinarily resident in Great Britain; and

[F59 (aa) subject to paragraph (1A), [F60 he is not a person subject to immigration control (within the meaning of section 115 of the Immigration and Asylum Act 1999)]; and]

(b) his partner, if any, is ordinarily resident in the United Kingdom; and

(c) his earnings or the earnings of his partner, if any, derive at least in part from remunerative work in the United Kingdom; and

(d) his earnings do not wholly derive from remunerative work outside the United Kingdom nor do the earnings of his partner, if any.

(1ZA) [F61 A Crown servant posted overseas, or his partner, shall be treated as being in Great Britain for the duration of his posting.]

[F62 (1A) For the purposes of paragraph (1)(aa), a [F63 person is not subject to immigration control] if—

F64 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F64 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) he is a national, or a member of the family of a national, of a State contracting party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993; or

(d) he is a person who is—

(i) lawfully working in Great Britain and is a national of a State with which the [F65 EU] has concluded an Agreement under article 238 of the Treaty establishing the European Community providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families, or

(ii) a member of the family of, and living with, such a person;] [F66 or

(e) he is a person who—

(i) has been given leave to enter, or remain in, the United Kingdom by the Secretary of State upon the undertaking of another person, or persons, pursuant to the immigration rules within the meaning of the Immigration Act 1971, to be responsible for his maintenance and accommodation, and

(ii) has been resident in the United Kingdom for a period of at least 5 years beginning with his date of entry into the United Kingdom, or the date on which the undertaking was given in respect of him, whichever is the later, or

(f) he is a person who—

(i) has been given leave to enter, or remain in, the United Kingdom by the Secretary of State upon the undertaking of another person, or persons, pursuant to the immigration rules mentioned in sub-paragraph (e) above, to be responsible for his maintenance and accommodation, and

(ii) has been resident in the United Kingdom for less than 5 years beginning with his date of entry into the United Kingdom, or the date on which the undertaking was given in respect of him, whichever is the later, but the person giving the undertaking has died or, where the undertaking was given by more than one person, they have all died.]

(2) A person shall be treated as not being in Great Britain during any period for which he, or his partner, is entitled to be paid [F67 working families' tax credit] [F68 or [F69 disabled person’s tax credit]] under the law of Northern Ireland.

Textual Amendments

F59 Reg. 3(1)(aa) inserted (5.2.1996) by The Social Security (Persons From Abroad) Miscellaneous Amendments Regulations 1996 (S.I. 1996/30), regs. 1(1), 6(a)

F60 Words in reg. 3(1)(aa) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 3(a)

F61 Reg. 3(1ZA) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 6

F62 Reg. 3(1A) inserted (5.2.1996) by The Social Security (Persons From Abroad) Miscellaneous Amendments Regulations 1996 (S.I. 1996/30), regs. 1(1), 6(b)

F63 Words in reg. 3(1A) substituted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 3(b)(i)

F64 Reg. 3(1A)(a)(b) omitted (with effect in accordance with reg. 1(1) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 3(b)(ii)

F65 Word in Regulations substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3-6

F66 Reg. 3(1A)(e)(f) and word added (with effect in accordance with reg. 3(3) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 3(2)

F67 Words in reg. 3(2) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(iii)

F68 Words in reg. 3(2) added (6.4.1992) by The Disability Living Allowance and Disability Working Allowance (Consequential Provisions) Regulations 1991 (S.I. 1991/2742), regs. 1(1), 13(3)

F69 Words in reg. 3(2) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(2), Sch. 2 para. 1(i)

Remunerative work U.K.

[F70 4.— (1) For the purposes of Part II of the Act as it applies to [F71 working families' tax credit], and subject to paragraph (3), a person shall be treated as engaged in remunerative work where—

(a) the work he undertakes is for not less than 16 hours per week;

(b) the work is done for payment or in expectation of payment; and

(c) he is employed at the date of claim and satisfies the requirements of paragraph (5).

(2) A person who does not satisfy all the requirements of sub-paragraphs (a) to (c) of paragraph (1) shall not be treated as engaged in remunerative work.

(3) [F72 A person who otherwise satisfies all the requirements of paragraph (1) shall not be treated as engaged in remunerative work insofar as—

(a) he is engaged by a charitable or voluntary organisation or is a volunteer, where the only payment received by him or due to be paid to him is a payment which is to be disregarded under regulation 24(2) and paragraph 2 of Schedule 2 (sums to be disregarded in the calculation of income other than earnings);

(b) he is engaged in caring for a person in respect of whom he receives payments to which paragraph 24 of Schedule 2 refers; or

(c) he is engaged on a scheme for which a training allowance is being paid.]

[F73 (da) he is participating in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996 or in the Intensive Activity Period for 50 plus;]

[F74 (e) he is engaged in an activity in respect of which—

(i) a sports award has been made, or is to be made, to him; and

(ii) no other payment is made or is expected to be made to him;] [F75 or

(f) he is in receipt of an employment zone subsistence allowance.]

(4) [F76 Subject to [F77 paragraphs (4A) and (4B)] ,] in determining for the purposes of sub-paragraph (a) of paragraph (1) whether the work a person undertakes is for not less than 16 hours per week—

(a) there shall be included in the calculation any time allowed for meals or refreshment but only where the person is, or expects to be, paid earnings in respect of that time; and

(b) if he is a person to whom regulation 14(5) (normal weekly earnings of employed earners) applies, the hours worked shall be calculated by reference to the average number of hours which his employer expects him to work in a week; or

(c) where paragraph (b) does not apply and—

(i) a recognised cycle of working has been established at the date of claim, the hours worked shall be calculated by reference to the average number of hours worked in a week over the period of one complete cycle (including, where the cycle involves periods in which the person does not normally work, those periods, but disregarding any other absences); or

(ii) no recognised cycle of working has been established at the date of claim, the hours worked shall be calculated by reference to—

(aa) the average number of hours worked over the five weeks immediately preceding the week of claim, or such other longer time preceding that week as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately; or

(bb) where he is a self-employed earner [F78 or director] and he has worked for less than 5 weeks at the date of claim, [F79 or he has, in the five weeks immediately preceding the week of claim, increased the number of hours that he works from below 16 hours to 16 hours or more per week,] the average number of hours he expects to work in a week; [F80 or

(d) in the case of a woman on maternity leave at the date of the claim, the hours worked shall be calculated on the basis of a declaration made by her of the average hours worked per week prior to the commencement of her maternity leave;] [F81 or

(e) in the case of a man on paternity leave at the date of the claim, the hours worked shall be calculated on the basis of a declaration made by him of the average hours worked per week prior to the commencement of his paternity leave.]

[F82 (4A) Where for the purpose of paragraph (4)(c)(i), a person’s recognised 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 he does not work, those periods and any other periods not forming part of such holidays or vacations during which he is not required to work shall be disregarded in establishing the average hours for which he is engaged in work.]

[F83 (4B) Any period where a person is absent from work by reason of jury service shall be disregarded in establishing the average hours for which he is engaged in work.]

(5) Subject to paragraph (6), the requirements of this paragraph are that the person—

(a) worked not less than 16 hours in either—

(i) the week of claim; or

(ii) either of the two weeks immediately preceding the week of claim; or

(b) is expected by his employer to work or, where he is a self-employed earner he expects to work, not less than 16 hours in the week next following the week of claim; or

(c) cannot satisfy the requirements of either sub-paragraph (a) or (b) above and at the date of claim he is absent from work by reason of a recognised, customary or other holiday but he is expected by his employer to work or, where he is a self-employed earner he expects to work, not less than 16 hours in the week following his return to work from that holiday;[F84 or

(d) cannot satisfy the requirements of sub-paragraph (a) or (b) above and at the date of claim he is absent from work by reason of jury service but he is expected by his employer to work or, where he is a self-employed earner, he expects to work, not less than 16 hours in the week following his return to work from that jury service;]

[F85 (e) cannot satisfy the requirements of sub-paragraph (a) or (b) above at the date of claim because she is on maternity leave at that date but—

(i) prior to the commencement of her maternity leave, she worked, on average, not less than 16 hours a week, and

(ii) she is entitled to maternity allowance or statutory maternity pay at the date of the claim;] [F86 or

(f) cannot satisfy the requirements of sub-paragraph (a) or (b) above because he is on paternity leave at that date but, prior to the commencement of his paternity leave, he worked, on average, not less than 16 hours a week,]

and for the purposes of calculating the number of hours worked, sub-paragraph (a) of paragraph (4) shall apply to this paragraph as it applies to sub-paragraph (a) of paragraph (1).

(6) [F87 For the purposes of paragraph (5)—

(a) work which a person does only qualifies if—

(i) it is the work he normally does, and

(ii) it is likely to last for a period of 5 weeks or more beginning with the week of claim; and

(b) a person shall be treated as not on a recognised, customary or other holiday on any day on which the person is on maternity leave or is absent from work because he is ill.]

(7) Where a person is treated as engaged in remunerative work in accordance with the above paragraphs, he shall also be treated as normally engaged in remunerative work.]

F88 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F70 Reg. 4 substituted, reg. 004 & 005 substituted by reg. 004, (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 3

F71 Words in reg. 4(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(iv)

F72 Reg. 4(3) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 11(a)

F73 Reg. 4(3)(da) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 5(2)

F74 Reg. 4(3)(e) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Sports Awards) Regulations 1999 (S.I. 1999/2165), regs. 1(1), 4(2)

F75 Reg. 4(3)(f) and word inserted (28.11.2000 with effect in accordance with reg. 4(6) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 4(2)

F76 Words in reg. 4(4) inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 11(a)

F77 Words in reg. 4(4) substituted (28.11.2000 with effect in accordance with reg. 4(6) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 4(3)

F78 Words in reg. 4(4)(c)(ii)(bb) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1), (2), 3

F79 Words in reg. 4(4)(c)(ii)(bb) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Family Credit and Disability Working Allowance (General) Amendment Regulations 1997 (S.I. 1997/806), regs. 1(1), 2

F80 Reg. 4(4)(d) and word inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 12(2)

F81 Reg. 4(4)(e) and word added (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 9(2)

F82 Reg. 4(4A) inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 11(b)

F83 Reg. 4(4B) inserted (28.11.2000 with effect in accordance with reg. 4(6) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 4(4)

F84 Reg. 4(5)(d) and word inserted (28.11.2000 with effect in accordance with reg. 4(6) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 4(5)

F85 Reg. 4(5)(d) and word added (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 12(3)

F86 Reg. 4(5)(f) and word inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 9(3)

F87 Reg. 4(6) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 26

F88 Reg. 4(8) omitted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 11(c)

Modifications etc. (not altering text)

C2 Reg. 4 modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 13(4)

[F89 Further provision as to remunerative work U.K.

4A.   Whether, for the purposes of regulation 46(1)(aa) (determination of appropriate maximum [F90 working families' tax credit]) and paragraph 1A of Schedule 4, the work a person undertakes is for not less than 30 hours per week shall be determined in accordance with regulation 4(1)(b), (3), (4) and (4A) except that for the words “16 hours” in paragraph (4) there shall be substituted the words “30 hours”.]

Textual Amendments

F89 Reg. 4A inserted (18.7.1995 (in accordance with reg. 1(2)(a)(b))) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 2) Regulations 1995 (S.I. 1995/1339), reg. 1(2)(a)(b), 6

F90 Words in reg. 4A substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(v)

PART III U.K. MEMBERSHIP OF A FAMILY

Persons of a prescribed description U.K.

6.—(1) Subject to paragraph (2), a person of a prescribed description for the purposes of section 20(5)(c) (entitlement) and section 20(11) of the Act (definition of the family) as it applies to [F91 working families' tax credit] is a person aged 16 or over but under 19 who is receiving full-time education within [F92 section 142(1)(c) of the Contributions and Benefits Act] (meaning of child), and in these Regulations such a person is referred to as “a young person”.

[F93 (2) Paragraph (1) shall not apply to a person–

(a) who is entitled to income support or would, but for section 20(9) of the Act (provision against dual entitlement of members of family), be so entitled;

[F94 (aa) who is entitled to income-based jobseeker’s allowance or would, but for section 3(1)(d) of the Jobseekers Act 1995 (provision against dual entitlement of members of family), be so entitled;]

(b) who is receiving advanced education within the meaning of regulation 1(2) of the Child Benefit (General) Regulations 1976; or

(c) who has ceased to receive full-time education but is to continue to be treated as a child by virtue of regulation 7 of the Child Benefit (General) Regulations 1976.]

Textual Amendments

F91 Words in reg. 6(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(vi)

F92 Words in reg. 6(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 4) Regulations 2001 (S.I. 2001/1082), regs. 1(1), 5

F93 Reg. 6(2) substituted (10.4.1990) by Family Credit (General) Amendment Regulations 1990 (S.I. 1990/574), reg. 1(1), 4

F94 Reg. 6(2)(aa) inserted (7.10.1996) by The Social Security and Child Support (Jobseeker’s Allowance) (Consequential Amendments) Regulations 1996 (S.I. 1996/1345), regs. 1, 8(3)

Circumstances in which a person is to be treated as responsible or not responsible for another U.K.

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

(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 he is living in, the child or young person shall be treated for the purposes of paragraph (1) as normally living with—

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

(b) if there is no such person—

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

(ii) in any other case the person who has the primary responsibility for him.

(3) For the purposes of these Regulations a child or young person shall be treated as the responsibility of only one person during the period of an award and any person other than the one treated as responsible for the child or young person under the foregoing paragraphs shall be treated as not so responsible.

Membership of the same household U.K.

8.—(1) Except in a case to which paragraph (2) applies, where a claimant or any partner is treated as responsible for a child or young person by virtue of regulation 7 (circumstances where a person is treated as responsible or not responsible for another), that child or young person and any child of that child or young person shall be treated as a member of the claimant's household.

(2) A child or young person shall not be treated as a member of the claimant's household in any case where the child or young person—

(a) is a patient or in residential accommodation on account of physical or mental handicap or physical or mental illness and has been so accommodated for the 12 weeks immediately before the date of claim and is no longer in regular contact with the claimant or any member of the claimant's household; or

(b) [F95 [F95 has been boarded out with the claimant or his partner prior to adoption; or

has been placed with the claimant or his partner prior to adoption;

(c) is boarded out with the claimant or his partner under a relevant enactment; or

has been placed with the claimant or his partner by a local authority under section 23(2)(a) of the Children Act 1989 or by a voluntary organisation under section 59(1)(a) of that Act; or]]

(d) has been placed for adoption with the claimant or his partner pursuant to a decision under the Adoption Agencies Regulations 1983 M8 or the Adoption Agencies (Scotland) Regulations 1984 M9 ; or

(e) is detained in custody under a sentence imposed by a court.

(3) In this regulation—

(a) “patient” means a person (other than a person who is serving a sentence imposed by a court in a prison or youth custody institution) who is regarded as receiving free in-patient treatment within the meaning of the Social Security (Hospital In-Patients) Regulations 1975 M10 .

(b) [F96 “ relevant enactment ” means the Army Act 1955 M11 , the Air Force Act 1955 M12 , the Naval Discipline Act 1957 M13 , the Adoption Act 1958 M14 , the Matrimonial Proceedings (Children) Act 1958 M15 , the Children Act 1958 M16 , the Social Work (Scotland) Act 1968 M17 , the Family Law Reform Act 1969 M18 , the Children and Young Persons Act 1969 M19 , the Matrimonial Causes Act 1973 M20 , the Guardianship Act 1973 M21 , the Children Act 1975 M22 , the Domestic Proceedings and Magistrates' Courts Act 1978 M23 , the Adoption (Scotland) Act 1978 M24 , the Child Care Act 1980 M25 and the Foster Children Act 1980 M26 ; ]

(c) “residential accommodation” means accommodation for a person whose stay in the accommodation has become other than temporary which is provided under—

(i) sections 21 to 24 and 26 of the National Assistance Act 1948 M27 (provision of accommodation); or

(ii) section 21(1) of, and paragraph 1 or 2 of Schedule 8 to, the National Health Service Act 1977 M28 (prevention, care and after-care) or, in Scotland, for the purposes of section 27 of the National Health Services (Scotland) Act 1947 M29 (prevention of illness and after-care) or under section 59 of the Social Work (Scotland) Act 1968 M30 (provision of residential and other establishments) or under section 7 of the Mental Health (Scotland) Act 1984 M31 (functions of local authorities).

Textual Amendments

F95 Reg. 8(2)(b)(c) substituted (E+W) (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), Sch. para 1(a)

F96 Reg. 8(3)(b) omitted (E+W) (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), Sch. para 1(b)

Marginal Citations

M8 S.I. 1983/1964.

M9 S.I. 1984/988.

M10 S.I. 1975/555; the relevant amending instruments are S.I. 1977/1693 and 1987/1683.

M11 1955 c. 18.

M12 1955 c. 19.

M13 1957 c. 53.

M14 1958 c. 5.

M15 1958 c. 40.

M16 1958 c. 65.

M17 1968 c. 49.

M18 1969 c. 46.

M19 1969 c. 54.

M20 1973 c. 18.

M21 1973 c. 29.

M22 1975 c. 72.

M23 1978 c. 22.

M24 1978 c. 28.

M25 1980 c. 5.

M26 1980 c. 6.

M27 1948 c. 29; section 21 was amended by the Local Government Act 1972 (c. 70), Schedule 23 paragraphs 1 and 2 and Schedule 30; the National Health Service Reorganisation Act 1973 (c. 32), Schedule 4 paragraph 44 and Schedule 5; the Housing (Homeless Persons) Act 1977 (c. 48), Schedule; the National Health Service Act 1977 (c. 49), Schedule 15 paragraph 5; the Health Services Act 1980 (c. 53), Schedule 1 Part 1 paragraph 5. Section 22 was amended by the Social Work (Scotland) Act 1968 (c. 49), section 87(4) and Schedule 9 Part I; the Supplementary Benefits Act 1976 (c. 71) Schedule 7 paragraph 3; the Housing (Homeless Persons) Act 1977 (c. 48), Schedule; the Social Security Act 1980 (c. 30), section 20, Schedule 4 paragraph 2(1) and Schedule 5 Part II and the Health and Social Services and Social Security Adjudications Act 1983 (c. 41), section 20(1)(a). Section 24 was amended by the National Assistance (Amendment) Act 1959 (c. 30), section 1(1); the National Health Service (Scotland) Act 1972 (c. 58), Schedule 6 paragraph 82; the Local Government Act 1972 (c. 70), Schedule 23 paragraph 2; the National Health Service Reorganisation Act 1973 (c. 32), Schedule 4 paragraph 45 and the Housing (Homeless Persons) Act 1977 (c. 48), Schedule. Section 26 was amended by the Health Services and Public Health Act 1968 (c. 46), section 44 and Schedule 4 and the Social Work (Scotland) Act 1968 (c. 49) Schedule 9 Part I and applied by section 87(3); the Local Government Act 1972 (c. 70), Schedule 23 paragraph 2; the Housing (Homeless Persons) Act 1977 (c. 48), Schedule and the Health and Social Services and Social Security Adjudications Act 1983 (c. 41), section 20(1)(b).

M28 1977 c. 49; paragraphs 1(2) and 2(5) of Schedule 8 were repealed by section 30 of, and Schedule 10 Part I to, the Health and Social Services and Social Security Adjudications Act 1983 (c. 41) and paragraphs 2(1) to (3) were amended by the Mental Health Act 1983 (c. 20) section 148 and Schedule 4.

M29 1947 c. 27, as applied by section 1(4)(c) of the Social Work (Scotland) Act 1968 (c. 49); section 27 is continued in force for the purposes of section 1(4)(c) by paragraph 15 of Schedule 15 to the National Health Service (Scotland) Act 1978 (c. 29).

M30 1968 c. 49.

M31 1984 c. 36.

Circumstances in which a person is to be treated as being no longer a member of the same household U.K.

9.— [F97 (1) Subject to the following provisions of this regulation, where the claimant and any partner of his are living apart from each other they shall be treated as members of the same household unless they do not intend to resume living together.]

(2) Where one of the members of a married or unmarried couple is a hospital [F98 patient] or [F99 detained in custody] he shall not be treated, on this account, as ceasing to be a member of the same household as his partner—

(a) unless he has been [F100 a patient] in a hospital for 52 weeks or more; or

(b) unless he is a patient detained in a hospital provided under section 4 of the National Health Service Act 1977 M32 (special hospitals) or section 90(1) of the Mental Health (Scotland) Act 1984 (provision of hospitals for patients requiring special security); or

(c) unless he is [F101 detained in custody whilst] serving a sentence of 52 weeks or more imposed by a court,

but shall be treated as not being a member of the same household as his partner wherever the conditions in sub-paragraphs (a), (b) or (c) are fulfilled.

[F102 (3) In this regulation “patient” has the same meaning as in regulation 8(3)(a) (membership of the same household).]

Textual Amendments

F97 Reg. 9(1) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 27

F98 Word in reg. 9(2) substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 3(a)(i)

F99 Words in reg. 9(2) substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 3(a)(ii)

F100 Words in reg. 9(2)(a) substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 3(a)(i)

F101 Words in reg. 9(2)(c) substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 3(a)(ii)

F102 Reg. 9(3) added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 3(b)

Marginal Citations

M32 1977 c. 49; section 4 was amended by the Mental Health Act 1983 (c. 20) section 148, Schedule 4, paragraph 47.

PART IV U.K. INCOME AND CAPITAL

CHAPTER I U.K. GENERAL

Calculation of income and capital of members of claimant's family and of a polygamous marriage U.K.

10.—(1) The income and capital of a claimant's partner and, subject to regulation 27 (modifications in respect of children and young persons), the income of a child or young person, which by virtue of section 22(5) of the Act is to be treated as income and capital of the claimant, shall be calculated or estimated in accordance with the following provisions of this Part in like manner as for the claimant; and any reference to the “ claimant” shall, except where the context otherwise requires, be construed, for the purposes of this Part, as if it were a reference to his partner or that child or young person.

(2) Where a claimant or the partner of a claimant is married polygamously to two or more members of the same household—

(a) the claimant shall be treated as possessing capital and income belonging to each such member and the income of any child or young person who is one of that member's family; and

(b) the income and capital of that member or, as the case may be, the income of that child or young person shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant or, as the case may be, as for any child or young person who is a member of his family.

Calculation of income and capital of students U.K.

11.  The provisions of Chapters II to VI of this Part (income and capital) shall have effect in relation to students and their partners subject to the modifications set out in Chapter VII thereof (students).

[F103 Rounding of fractions U.K.

12.   Where any calculation under this Part [F104 or Part V] results in a fraction of a penny that fraction shall, if it would be to the claimant’s advantage, be treated as a penny, otherwise it shall be disregarded.]

Textual Amendments

F103 Reg. 12 substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 4

F104 Words in reg. 12 inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 4

CHAPTER II U.K. NORMAL WEEKLY INCOME

Calculation of income on a weekly basis U.K.

13.—(1) For the purposes of section 20(5) of the Act (conditions of entitlement to [F105 working families' tax credit]), the income of a claimant shall be calculated on a weekly basis—

(a) by ascertaining in accordance with this Chapter and Chapter V of this Part (other income) the amount of his normal weekly income; F106 ...

(b) by adding to that amount the weekly income calculated under regulation 36 (calculation of tariff income from capital); F107 ...

F108 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F109 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F110 (2) For the purposes of paragraph (1) “income” includes capital treated as income under regulation 25 (capital treated as income) and income which a claimant is treated as possessing under regulation 26 (notional income).]

Textual Amendments

F105 Words in reg. 13(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(vii)

F106 Word in reg. 13(1) omitted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.4) Regulations 1994 (S.I. 1994/1924), regs. 1(2)(a), 4(3)(a)

F107 Word in reg. 13(1)(b) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 5(2)

F108 Reg. 13(1)(c) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 5(2)

F109 Reg. 13(1A) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 5(3)

F110 Reg. 13(02) substituted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 3

Treatment of child care charges U.K.

F111 13A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F111 Reg. 13A: reg. 13A renumbered as reg. 46A (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 6

[F112 Normal weekly earnings of employed earners U.K.

14.— (1) Where a claimant’s income consists of earnings from employment as an employed earner, [F113 except where those earnings arise from employment as a director,] his normal weekly earnings from that employment shall, subject to [F114 paragraphs (3) to (6C)], be determined [F115 by taking account of his earnings from that employment which are received in the assessment period relevant to his case, whether the amount so received was earned in respect of that period or not, and in accordance with the following provisions of this regulation.]

(2) A claimant’s assessment period, subject to [F116 paragraphs (2A) to (6C)] , shall be, in respect of a claimant whose pay period is—

(a) [F117 a week—

(i) except where head (ii) applies, a period of 6 consecutive weeks immediately preceding the week of claim; or

(ii) where the [F118 appropriate officer] has insufficient information for the claimant’s normal weekly earnings to be determined in accordance with head (i), a period of 6 consecutive weeks ending with the week before the week immediately preceding the week of claim;]

(aa) [F119 a fortnight—

(i) except where head (ii) applies, a period of three consecutive fortnights immediately preceding the week of claim; or

(ii) where the [F120 appropriate officer] has insufficient information for the claimant’s normal weekly earnings to be determined in accordance with head (i), a period of three consecutive fortnights ending with the fortnight before the week immediately preceding the week of claim;]

(b) four weeks or a month, a period of 12 consecutive weeks or, as the case may be, 3 consecutive months, immediately preceding the week of claim;

(c) any period of less than one month (a shorter period), other than one to which sub-paragraph (a) or (b) refers, 6 consecutive shorter periods immediately preceding the week of claim;

(d) any period of more than one month (a longer period), a period of one year ending immediately before the week of claim.

[F121 (2A) Where an [F122 appropriate officer] considers, on the basis of available evidence, that the claimant has elected to work fewer hours than he would otherwise have worked in the whole or part of the assessment period referred to in paragraph (2) with the result that, but for this paragraph, he would secure entitlement or increased entitlement to [F123 working families' tax credit], the adjudication officer may determine the claimant’s normal weekly earnings by [F124 taking account of his earnings received] during the period equal to, and ending immediately before, the period determined in accordance with paragraph (2), unless the claimant satisfies him that the reason for reducing his hours of work was otherwise than to secure such an entitlement or increased entitlement.]

(3) Where during a claimant’s assessment period his earnings are reduced because of his involvement in a trade dispute at his place of employment [F125 or because of his absence from work by reason of jury service], that assessment period shall be varied in that—

(a) any pay period during which his earnings are so reduced shall be omitted from it; and

(b) subject to sub-paragraph (c), his assessment period shall commence one pay period earlier (the extra period) for each period so omitted;

(c) where any extra period under sub-paragraph (b) is one in which his earnings are reduced because of his involvement in a trade dispute at his place of employment [F125 or because of his absence from work by reason of jury service], that extra period shall also be omitted from his assessment period and his assessment period shall commence one pay period earlier, for each extra period so omitted,

but so that his assessment period remains a period equal in length to the assessment period which would otherwise apply in his case under paragraph (2) but as if the words “consecutive” and “immediately” were omitted from that paragraph on each occasion where they appear.

(4) Where a claimant’s earnings, whether during his assessment period or not, include a bonus or commission which is paid within 52 weeks preceding the week of claim and that bonus or commission is paid separately from his other earnings or is paid in respect of a period longer than the pay period relating to the other earnings with which it is paid, his normal weekly earnings shall be treated as including an amount in respect of that bonus or commission calculated in accordance with regulation 20A (calculation of bonus or commission).

(5) Where at the date of claim—

(a) the claimant—

(i) has been in his employment, or

(ii) after a continuous period of interruption exceeding 4 weeks, has resumed his employment, or

(iii) has changed the number of hours for which he is contracted to work; and

(b) the period of his employment or the period since he resumed his employment or the period since the change in the number of hours took place, as the case may be, is less than the assessment period in paragraph (2) appropriate in his case,

his normal weekly earnings shall be determined in accordance with paragraph (6).

(6) In a case to which this paragraph applies, the [F126 the Board] shall require the claimant’s employer to furnish him with an estimate of the claimant’s likely earnings for the pay period for which he is or will normally be paid and the claimant’s normal earnings shall be determined by [F127 taking account of] that estimate.

[F128 (6ZA) Where at the date of claim—

(a) the claimant is a Crown servant posted overseas or a partner of such a Crown servant, and

(b) either or both of them has employment other than as a Crown servant which is carried on in an overseas territory,

the Board shall require either or both of them to furnish either evidence of earnings from that employment or, if that is not available, an estimate of likely earnings from that employment for the pay periods for which they will normally be paid, and normal weekly earnings shall be determined by taking account of that evidence or estimate.]

[F129 (6A) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and

(b) the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate.

(6B) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate.

(6C) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly.]

(7) For the purposes of this regulation—

(a) the claimant’s earnings shall be calculated in accordance with Chapter III of this Part;

(b) “pay period” means the period in respect of which a claimant is, or expects to be [F130 normally] paid by his employer, being a week, a fortnight, four weeks, a month or other shorter or longer period, as the case may be.]

Textual Amendments

F112 Reg. 14 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 4

F113 Words in reg. 14(1) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 11(a)

F114 Words in reg. 14(1) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(2)

F115 Words in reg. 14(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(a)

F116 Words in reg. 14(2) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(3)

F117 Reg. 14(2)(a) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(a)(ii)

F118 Words in reg. 14(2)(a)(ii) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F119 Reg. 14(2)(aa) substituted (9.4.1996) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/462), regs. 1(5), 7

F120 Words in reg. 14(2)(aa)(ii) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F121 Reg. 14(2A) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(b)

F122 Words in reg. 14(2A) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F123 Words in reg. 14(2A) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(viii)

F124 Words in reg. 14(2A) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(b)

F125 Words in reg. 14(3) inserted (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(3)

F126 Words in reg. 14(6) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(3), (4)(a)

F127 Words in reg. 14(6) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(c)

F128 Reg. 14(6ZA) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 7

F129 Reg. 14(6A)-(6C) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(4)

F130 Words in reg. 14(7)(b) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(c)

[F131 Normal weekly earnings of directors U.K.

14A.— (1) Subject to paragraph (2) and regulation 17 (periods to be disregarded), where a claimant’s income includes earnings from employment as a director, his normal weekly earnings from that employment shall be determined [F132 by taking account of his earnings from that employment received in the year immediately preceding the week of claim, whether the amount so received was earned in respect of that period or not.]

(2) Where at the date of claim the claimant has been in employment as a director for less than a year, his normal weekly earnings from that employment shall be [F133 determined by taking account of his earnings from that employment received in the period that he has been in that employment] and by reference to an estimate of the earnings likely to be received in the remainder of the first year of the employment.]

Textual Amendments

F131 Reg. 14A substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 12

F132 Words in reg. 14A(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(3)(a)

F133 Words in reg. 14A(2) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(3)(b)

Normal weekly earnings of self-employed earners U.K.

15.—(1) Subject to regulation 17 (periods to be disregarded), where a claimant's income consists of earnings from employment as a self-employed earner, his normal weekly earnings shall be determined, subject to paragraph (2), by reference to his weekly earnings from that employment—

[F134 (a) except where sub-paragraph (aa) or (b) applies, over a period of 6 consecutive complete months up to and including the second last complete month immediately preceding the date of claim; or

(aa) except where sub-paragraph (b) applies, where the claimant provides in respect of the employment a statement of his earnings and expenses for the six consecutive complete months up to and including the last complete month immediately preceding the date of claim, over that period of six months; or]

[F135 (b) where the claimant provides in respect of the employment a profit and loss account and, where appropriate, a trading account or a balance sheet or both, and the profit and loss account is in respect of a period of at least 6 months but not exceeding 15 months and that period terminates within the 12 months preceding the date of claim, over that period; or]

(c) over such other period of weeks [F136 or months] preceding the week in which [F137 the date of claim falls] as may, in any particular case, enable his normal weekly earnings to be determined more accurately.

[F138 (1A) in paragraph (1)(b)—

(a) “balance sheet” means a statement of the financial position of the employment disclosing its assets, liabilities and capital at the end of the period in question;

(b) “profit and loss account” means a financial statement showing the net profit or loss of the employment for the period in question; and

(c) “trading account” means a financial statement showing the revenue from sales, the cost of those sales and the gross profit arising during the period in question.]

[F139 (2) Subject to regulation 17, in a case where the claimant has been in employment as a self-employed earner for less than 7 complete months, his normal weekly earnings shall be determined over a period of 6 consecutive complete months commencing with the first complete month after the claimant began that employment, and that determination shall be based on either—

(a) where the claimant provides in relation to that employment a statement of his earnings and expenses for the complete months up to and including the last complete month immediately preceding the date of claim, the earnings he received in those months, or

(b) where no such statement is provided, any earnings he received in the period up to and including the second last complete month immediately preceding the date of claim,

together with an estimate of the earnings likely to be received in the balance of the 6 month period.]

(3) For the purposes of this regulation, the claimant's earnings shall be calculated in accordance with Chapter IV of this Part.

[F140 (4) In this regulation a “complete month” begins on the first day of the month and ends on the last day of the month.]

Textual Amendments

F134 Reg. 15(1)(a)(aa) substituted: reg. 15(1)(a)(aa) substituted for reg. 15(1)(a): (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 13(2)

F135 Reg. 15(1)(b) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 3(a)(ii)

F136 Words in reg. 15(1)(c) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 13

F137 Words in reg. 15(1)(c) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 3(a)(iii)

F138 Reg. 15(1A) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 3(b)

F139 Reg. 15(2) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 13(3)

F140 Reg. 15(4) inserted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 13(4)

Normal weekly income other than earnings U.K.

16.—(1) Subject to [F141 paragraphs (2) and (2A)], [F142 where a claimant’s normal weekly income does not consist of earnings, or includes income that does not consist of earnings, that income] shall be determined by reference to his weekly income over a period of 26 weeks immediately preceding [F143 the week in which the date of claim falls] or over such period immediately preceding that date as may, in any particular case, enable his normal weekly income[F144 , except where paragraph (2A) applies,] to be determined more accurately.

(2) Where a claimant's income consists of any payments made by a person, whether under a court order or not, for the maintenance of any member of [F145 the claimant’s family], and those payments are made or due to be made at regular intervals, his normal weekly income shall be determined—

(a) if before the date of claim those payments are made at regular intervals [F146 and of regular amounts], by reference to the normal weekly amount;

(b) if they are not so made, by reference to the average of such payments received in the 13 weeks immediately preceding the week in which [F147 the date of claim falls].

[F148 (2A) Where a claimant’s income consists of child support maintenance, his normal weekly income in respect of that maintenance shall be determined—

(a) if before the date of claim those maintenance payments are made at regular intervals [F149 and of regular amounts], by reference to the normal weekly amount;

(b) if they are not so made, [F150 except in a case to which sub-paragraph (c) applies,] by reference to the average of such payments received in the 13 weeks immediately preceding the week in which the date of claim falls,

[F151 (c) where the maintenance assessment has been notified to the claimant under regulation 10 of the Child Support (Maintenance Assessment Procedure) Regulations 1992 during the 13 weeks immediately preceding the week of claim, by reference to the average of such payments, calculated on a weekly basis, received in the interim period,]

and if the resulting sum exceeds the amount of child support maintenance due under the maintenance assessment, the normal weekly income shall be the amount due under the maintenance assessment.]

(3) For the purposes of this regulation, income other than earnings shall be calculated in accordance with Chapter V of this Part.

[F152 (4) In this regulation—

(a) “child support maintenance” means such periodical payments as are referred to in section 3(6) of the Child Support Act 1991;

(b) “maintenance assessment” has the same meaning as in the Child Support Act 1991 by virtue of section 54 of that Act.]

[F153 (c) “the interim period” means the week in which the date of notification of the maintenance assessment falls and the subsequent period up to and including the week immediately preceding the week of claim.]

Textual Amendments

F141 Words in reg. 16(1) substituted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 11(2)

F142 Words in reg. 16(1) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(2)

F143 Words in reg. 16(1) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 4(a)

F144 Words in reg. 16(2) substituted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 11(3)(b)

F145 Words in reg. 16(2) substituted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 11(3)(a)

F146 Words in reg. 16(2)(a) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(3)

F147 Words in reg. 16(2)(b) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 4(b)

F148 Reg. 16(2A) added (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 11(4)

F149 Words in reg. 16(2A)(a) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(4)(a)

F150 Words in reg. 16(2A)(b) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(4)(b)

F151 Reg. 16(2A)(c) inserted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(4)(c)

F152 Reg. 16(4) added (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 11(5)

F153 Reg. 16(4)(c) added (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 28(5)

Periods to be disregarded U.K.

[F154 17.   For the purposes of ascertaining a claimant’s normal weekly earnings there shall be disregarded—

(a) where the claimant is a self-employed earner, any week or period of weeks in his assessment period during which no activities have been carried out for the purposes of the business;

(b) where the claimant is a director, any week or period of weeks in his assessment period during which he has done no work and in respect of which he has received no earnings; and

his normal weekly earnings shall be determined by reference to his earnings in the remainder of that period (the reduced period) and in these Regulations any reference to an assessment period shall in its application to such a case be construed as a reference to that reduced period.]

Textual Amendments

F154 Reg. 17 substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 14

Calculation of weekly amount of income U.K.

18.—(1)  [F155 For the purposes of regulation 14 (normal weekly earnings of employed earners) and 16 (normal weekly income other than income other than earnings), where the claimant’s pay period or, as the case may be, the period in respect of which a payment is made—]

(a) does not exceed a week, the weekly amount shall be the amount of that payment;

(b) exceeds a week, the weekly amount shall 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;

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

[F156 (2) For the purposes of regulation 15 (normal weekly earnings of self-employed earners) the weekly amount of earnings of a claimant shall be determined—

(a) [F157 except where sub-paragraph (b) applies, by multiplying by 7 his earnings

(i) received in the assessment period, or

(ii) estimated for the assessment period, or

(iii) both received in and estimated for that period,

as the ease may be, and dividing the product by the number equal to the number of days in that period;]

(b) in a case where regulation 15(1)(b) applies, by multiplying his earnings relevant to the assessment period (whether or not received in that period) by 7 and dividing the product by the number equal to the number of days in that period.]

[F158 (3) For the purposes of regulation 14A (normal weekly earnings of directors) the weekly amount of earnings of a claimant shall be determined by dividing his earnings—

(i) received in the assessment period, or

(ii) estimated for the assessment period, or

(iii) both received in and estimated for that period,

as the case may be, by the number equal to the number of weeks in that period.]

Textual Amendments

F155 Words in reg. 18(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(4)

F156 Reg. 18(2) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 5

F157 Reg. 18(2)(a) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 15(a)

F158 Reg. 18(3) added (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 15(b)

CHAPTER III U.K. EMPLOYED EARNERS

Earnings of employed earners U.K.

19.—(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 holiday pay except any payable more than 4 weeks after termination of the employment;

(c) any payment by way of a retainer;

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

(i) travelling expenses incurred by the claimant between his home and place of employment;

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

(e) any award of compensation made under section 68(2) or 71(2)(a) of the Employment Protection (Consolidation) Act 1978 M33 (remedies and compensation for unfair dismissal);

(f) any such sum as is referred to in section 18(2) of the Social Security (Miscellaneous Provisions) Act 1977 M34 (certain sums to be earnings for social security purposes);

[F159 (g) any statutory sick pay under Part I of the Social Security and Housing Benefits Act 1982 M35 ;

(h) any statutory sick pay under Part II of the Social Security (Northern Ireland) Order 1982.]

[F160 (i) 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 regulation 18(22) to (25) of the Social Security (Contributions) Regulations 1979.]

(2) Earnings shall not include—

(a) subject to [F161 paragraphs (3) and (4)], 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.

[F162 (d) any statutory maternity pay or a corresponding benefit under any enactment having effect in Northern Ireland.]

[F163 (e) any statutory paternity pay or a corresponding benefit under any enactment having effect in Northern Ireland.]

(3) Where living accommodation is provided for a claimant by reason of his employment, the claimant shall be treated as being in receipt of weekly earnings of an amount equal to—

(a) where no charge is made in respect of the provision of that accommodation, £12;

(b) where a charge is made and that weekly charge is less than £12, the amount of the difference,

except that where the claimant satisfies the [F164 appropriate officer] that the weekly value to him of the provision of that accommodation is an amount less than the amount in sub-paragraph (a) or (b), as the case may be, he shall be treated as being in receipt of that lesser value.

[F165 (4) Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(i).]

[F166 (5) An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim.

(6) An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to statutory maternity pay at the date of the claim and is neither receiving nor expecting to receive at that date extra statutory maternity pay from her employer.]

Textual Amendments

F159 Reg. 19(1)(g)(h) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 6

F160 Reg. 19(1)(i) added (1.7.1999) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(3)(a)

F161 Words in reg. 19(2)(a) substituted (1.7.1999) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(3)(b)

F162 Reg. 19(2)(d) added (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 12

F163 Reg. 19(2)(e) added (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 10(2)

F164 Words in reg. 19(3) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F165 Reg. 19(4) added (1.7.1999) by The Social Security Amendment (Non-Cash Vouchers) Regulations 1999 (S.I. 1999/1509), regs. 1(1), 2(3)(c)

F166 Reg. 19(5)(6) added (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 14(2)

Marginal Citations

M33 1978 c. 44; section 68(2) was amended by section 21 Schedule 3 paragraph 21 of the Employment Act 1982 (c. 46); section 71(2) was amended by the Employment Act 1982 (c. 46) sections 5 and 21 Schedule 3 paragraph 22 and Schedule 4.

M34 1977 c. 5; section 18(2) was amended by section 159 Schedule 16 paragraph 29 of the Employment Protection (Consolidation) Act 1978 (c. 44) and by section 86(2) of, and Schedule 10 Part IV paragraph 75 and Schedule 11 to, the Social Security Act 1986 (c. 50).

M35 1982 c. 24.

Calculation of net earnings of employed earners U.K.

20.— [F167 (1) For the purposes of regulation 14 (normal weekly earnings of employed earners) the earnings of a claimant to be taken into account shall be his average weekly net [F168 earnings and] where an estimate of earnings has been made in his case, as estimated, and those weekly net earnings shall be determined in accordance with the following paragraphs.]

(2) There shall be disregarded from a claimant's net earnings, any sum, where applicable, specified in Schedule 1.

(3) [F169 A claimant’s net earnings shall, except where paragraph (4) [F170 or (4A)] applies, be calculated by taking into account his gross earnings from that employment] F171 ..., less—

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

(i) income tax;

(ii) primary Class 1 contributions under the Social Security Act M36 ; and

(b) one-half of any sum paid by the claimant [F172 in respect of a pay period] by way of a contribution towards an occupational or personal pension scheme; [F173 and

(c) the net amount of bonus or commission (if any) which is paid separately from his other earnings or is paid in respect of a period longer than the pay period relating to the other earnings with which it is paid and that net amount shall be the gross amount of that bonus or commission after deducting from it sums calculated in accordance with paragraphs (a) to (c) of regulation 20A (calculation of bonus or commission).]

(4) Where the earnings of a claimant are [F174 estimated under paragraph (6)][F175 , (6A) or (6B)] of regulation 14 (normal weekly earnings of employed earners), his net earnings shall be calculated by taking into account those earnings over [F176 the period in respect of which the estimate is made], less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings [F177 the lower rate or, as the case may be, the lower rate and the basic rate of tax] in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970 M37 (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year, [F178 the earnings to which the lower rate F179 ... of tax is to be applied and] the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro rata basis;

[F180 (b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to those earnings the initial and main primary percentages applicable at the date of claim in accordance with section 8(1) (a) and (b) of that Act; and]

[F181 (c) one half of any sum which would be payable by the claimant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.]

[F182 (4A) Where earnings are estimated under paragraph (6ZA) of regulation 14 (normal weekly earnings of employed earner in overseas territory), net earnings shall be calculated by taking into account those earnings over the period in respect of which the estimate is made, less—

(a) the amount (if any) of income tax deducted in respect of those earnings in accordance with the laws of the overseas territory concerned,

(b) the amount (if any) of social security contributions deducted in respect of those earnings in accordance with those laws, and

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

[F183 (5) When a claimant’s net earnings have been calculated in accordance with paragraph (3), his average net earnings in respect of his pay period shall be calculated as follows—

(a) the net earnings in each of the pay periods in his assessment period shall be aggregated, that total shall then be divided by the number of pay periods in his assessment period and the resulting amount shall be the average net earnings for his pay period;

(b) where in respect of any pay period, a claimant’s net earnings are twenty per cent. or more higher, or twenty per cent. or more lower, than his average net earnings, those net earnings and that pay period shall be omitted, his assessment period shall be reduced accordingly and his average net earnings shall, subject to sub- paragraph (c), be re-calculated in accordance with sub-paragraph (a);

(c) where the operation of sub-paragraph (b) results in no pay period remaining in a claimant’s assessment period there shall be omitted from the assessment period any pay period in which no earnings are received or in which the net earnings received are for a period longer than his normal pay period and his average net earnings shall be re-calculated in accordance with sub-paragraph (a);

(d) where the operation of sub-paragraph (c) results in no pay periods remaining, paragraph (6) of regulation 14 (normal weekly earnings of employed earners) and paragraph (4) of this regulation shall apply in his case.

(6) Where a claimant’s average net earnings for his pay period have been calculated in accordance with paragraph (5) and his pay period is—

(a) a week, a fortnight or four weeks, his average net earnings for his pay period shall be divided by the number of weeks in that period;

(b) a month, his average net earnings shall be multiplied by 12, the resulting product divided by 52;

(c) any shorter or longer period than those referred to in sub- paragraphs (a) and (b), his average net earnings for his pay period shall be multiplied by 7 and the product divided by the number equal to the number of days in his pay period,

and the resulting amount shall be his average weekly net earnings.]

Textual Amendments

F167 Reg. 20(1) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(a)

F168 Words in reg. 20(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(5)(a)

F169 Words in reg. 20(3) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(b)(i)

F170 Words in reg. 20(3) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 8(a)

F171 Words in reg. 20(3) omitted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(5)(b)

F172 Words in reg. 20(3)(b) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 15(2)

F173 Reg. 20(3)(c) and preceding word added (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(b)(ii)

F174 Words in reg. 20(4) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(c)(i)

F175 Words in reg. 20(4) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 15(2)

F176 Words in reg. 20(4) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(c)(ii)

F177 Words in reg. 20(4)(a) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 6(a)

F178 Words in reg. 20(4)(a) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 6(b)

F179 Words in reg. 20(4)(a) omitted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 14

F180 Reg. 20(4)(b) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 16

F181 Reg. 20(4)(c) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 15(3)

F182 Reg. 20(4A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 8(b)

F183 Reg. 20(5) (6) added (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 7(d)

Marginal Citations

M36 See sections 1 and 4 of the Social Security Act 1975 (c. 14); section 1 was amended by section 40 of the Employment Protection Act 1975 (c. 71), section 24 of, and Schedule 2 to, the Social Security (Miscellaneous Provisions) Act 1977 (c. 5), section 2 of the Social Security (Contributions) Act 1982 (c. 2), section 29 of, and paragraph 5 of Schedule 5 to, the Social Security Act 1985 (c. 53), section 86 of, and Schedule 11 to, the Social Security Act 1986 (c. 50) and S.I. 1987/48; section 4 was amended by paragraph 36 of Schedule 4 to the Social Security Pensions Act 1975 (c. 60), section 2(4) of the Education (School-Leaving Dates) Act 1976 (c. 5), section 14(1) of the Social Security Act 1979 (c. 18), Schedule 5 of the Social Security and Housing Benefits Act 1982 (c. 24), sections 7(1) and (2) and 8(1) of the Social Security Act 1985, sections 74(1)(a) and (2) and 86 of, and paragraph 104 of Schedule 10 to, the Social Security Act 1986 and S.I. 1986/25 and 1987/46.

M37 1970 c. 10; section 8(1) was amended by the Finance Act 1971 (c. 68) section 37, Schedule 6 paragraphs 1 and 5, and by the Finance Act 1985 (c. 54) section 36; subsection (1A) was added by the Finance (No. 2) Act 1975 (c. 45) section 31 and amended by the Finance Act 1977 (c. 36) section 22. Subsection (1B) was added by the Finance (No. 2) Act 1975, section 31. Section 8(2) was amended by the Finance Act 1971 section 37, Schedule 6 paragraphs 1 and 5 and by article 2 of S.I. 1985/430; sub-paragraph (b) was substituted by the Finance (No. 2) Act 1979 (c. 47) section 12, Schedule 2 paragraph 1; sub-paragraphs (b)(i) and (ii) were amended by the Finance Act 1981 (c. 35), section 139, Schedule 19 Part VI and the Finance Act 1982 (c. 39) section 157, Schedule 22 Part IV; sub-paragraph (b)(iii) was added by the Finance Act 1981 section 27 and sub-paragraph (b)(iv) by the Finance Act 1987 (c. 16) section 27. Section 14(1) was amended by the Finance Act 1970 (c. 24) section 14, Schedule 8 Part VI; section 14(2) was amended by the Finance Act 1976 (c. 40) section 36, the Finance (No. 2) Act 1979, section 11, Schedule 1 paragraph 2 and the Finance Act 1980 (c. 48) section 24.

[F184 Calculation of net earnings of directors U.K.

20ZA.— (1) For the purposes of regulation 14A (normal weekly earnings of directors) the earnings of a claimant to be taken into account shall be his net earnings F185 ... and those net earnings shall be determined in accordance with the following paragraphs.

(2) There shall be disregarded from a claimant’s net earnings any sum, where applicable, specified in Schedule 1.

(3) A claimant’s net earnings shall, except where paragraph (4) applies, be calculated by taking into account his gross earnings from that employment, less—

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

(i) income tax;

(ii) primary Class 1 contributions under the Contributions and Benefits Act; and

(b) one-half of any sum paid by the claimant [F186 in respect of a pay period] by way of a contribution towards an occupational or personal pension scheme.

(4) Where some or all of the claimant’s earnings are estimated under regulation 14A(2), those net earnings shall be calculated by taking into account the estimated gross earnings, less—

(a) an amount representing income tax, calculated by applying to those earnings the lower rate or, as the case may be, the lower rate and the basic rate of income tax in the year of assessment in which the claim was made, taking into account the personal relief to which the claimant would be entitled under sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988 (personal relief); except that if the period in respect of which the estimate is made is less than a year, [F187 the earnings to which the lower rate of tax is to be applied] and the amount of the personal relief allowable under this sub-paragraph shall be reduced pro-rata;

(b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to those earnings the initial and main primary percentages applicable at the date of claim in accordance with section 8(1) (a) and (b) of that Act; and

(c) one-half of any sum which would be payable by the claimant by way of a contribution towards an occupational or personal pension scheme [F188 , if the earnings so estimated were actual earnings.]]

Textual Amendments

F184 Reg. 20ZA inserted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 17

F185 Words in reg. 20ZA(1) omitted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(6)

F186 Words in reg. 20ZA(3)(b) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 16(a)

F187 Words in reg. 20ZA(4)(a) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 16(b)

F188 Words in reg. 20ZA(4)(c) added (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 16(c)

[F189 Calculation of bonus or commission U.K.

20A.   Where a claimant’s earnings include a bonus or commission to which [F190 paragraph (4)] of regulation 14 (normal weekly earnings of employed earners) applies that part of his earnings shall be calculated by aggregating any payments of bonus or commission and [F191 deducting from it —]

(a) an amount in respect of income tax equivalent to an amount calculated by applying to that part of the earnings the basic rate of tax in the year of assessment in which the claim is made; and

[F192 (b) an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to that part of the earnings the main primary percentage applicable at the date of claim; and]

(c) one-half of any sum payable by the claimant in respect of that part of the earnings by way of a contribution towards an occupational pension [F193 scheme;]]

[F194 and dividing the resulting sum by 52.]

Textual Amendments

F189 Reg. 20A inserted (10.4.1990) by Family Credit (General) Amendment Regulations 1990 (S.I. 1990/574), reg. 1(1), 8

F190 Words in reg. 20A substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 8

F191 Words in reg. 20A substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 7(a)

F192 Reg. 20A(b) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 18

F193 Word in reg. 20A(c) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 7(b)

F194 Words in reg. 20A added (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 7(c)

CHAPTER IV U.K. SELF-EMPLOYED EARNERS

Earnings of self-employed earners U.K.

21.—(1) Subject to [F195 paragraphs (2) and (3)], “earnings”, in the case of employment as a self-employed earner, means the gross receipts of the employment and shall include any allowance paid under section 2 of the Employment and Training Act 1973 M38 [F196 or section 2 of the Enterprise and New Towns (Scotland) Act 1990] to the claimant for the purpose of assisting him in carrying on his business unless at the date of claim the allowance has been terminated.

(2) Where a claimant is employed in providing board and lodging accommodation for which a charge is payable, any income consisting of payments of such a charge shall only be taken into account under this Chapter as earnings if it forms a major part of the total of the claimant's weekly income less any sums disregarded under Schedule 2 [F197 other than under paragraph 40 of that Schedule.]

[F198 (3) “Earnings” shall not include any payments to which paragraph 24 of Schedule 2 refers (sums to be disregarded in the calculation of income other than earnings) [F199 nor shall it include any sports award].]

[F200 (4) A self-employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim.]

Textual Amendments

F195 Words in reg. 21(1) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 17(a)

F196 Words in reg. 21(1) inserted (1.4.1991) by The Enterprise (Scotland) Consequential Amendments Order 1991 (S.I. 1991/387), arts. 1, 2, Sch.

F197 Words in reg. 21(2) added (10.4.1990) by Family Credit (General) Amendment Regulations 1990 (S.I. 1990/574), reg. 1(1), 9

F198 Reg. 21(3) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 17(b)

F199 Words in reg. 21(3) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Social Security Amendment (Sports Awards) Regulations 1999 (S.I. 1999/2165), regs. 1(1), 4(3)

F200 Reg. 21(4) added (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 16(2)

Marginal Citations

M38 1973 c. 50; section 2 was amended by sections 9 and 11 and Schedule 2, Part II, paragraph 9 and Schedule 3 of the Employment and Training Act 1981 (c. 57).

Calculation of net profit of self-employed earners U.K.

22.—(1) For the purposes of regulation 15 (normal weekly earnings of self-employed earners), the earnings of a claimant to be taken into account shall be—

(a) in the case of a self-employed earner who is engaged in employment on his 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 or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations 1975 M39 , his share of the net profit derived from that employment less—

(i) an amount in respect of income tax and social security contributions payable under the Social Security Act calculated in accordance with regulation 23 (deduction of tax and contributions for self-employed earners); and

(ii) [F201 one-half of the amount in respect of any qualifying premium calculated in accordance with paragraph (13)].

(2) There shall be disregarded from a claimant's net profit any sum, where applicable, specified in Schedule 1.

(3) For the purposes of paragraph (1)(a) the net profit of the employment shall, except where paragraph [F202 (3A),] (9) or (10) applies, be calculated by taking into account the earnings of the employment [F203 received in the assessment period], less—

(a) subject to paragraphs (5) to (7), any expenses wholly and exclusively defrayed 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 Social Security Act, calculated in accordance with regulation 23 (deduction of tax and contributions for self-employed earners); and

(c) [F204 one-half of the amount in respect of any qualifying premium calculated in accordance with paragraph (13)].

[F205 (3A) For the purposes of paragraph (1)(a), in a case where the assessment period is determined under regulation 15(1)(b), the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment relevant to that period (whether or not received in that period), less—

(a) subject to paragraphs (5) to (7), any expenses relevant to that period (whether or not defrayed in that period) and which were wholly and exclusively incurred for the purposes of that employment;

(b) an amount in respect of—

(i) income tax; and

(ii) social security contributions payable under the Social Security Act,

calculated in accordance with regulation 23; and

(c) [F206 one-half of the amount in respect of any qualifying premium calculated in accordance with paragraph (13)].]

(4) For the purposes of paragraph (1)(b) the net profit of the employment shall, except where paragraph [F207 (4A), (9) or] (10) applies, be calculated by taking into account the earnings of the employment [F208 received in the assessment period] less, subject to paragraphs (5) to (7), any expenses wholly and exclusively defrayed in that period for the purposes of that employment.

[F209 (4A) For the purposes of paragraph (1)(b), in a case where the assessment period is determined under regulation 15(1)(b), the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment relevant to that period (whether or not received in that period) less, subject to paragraphs (5) to (7), any expenses relevant to that period (whether or not defrayed in that period) and which were wholly and exclusively incurred for the purposes of that employment.]

(5) Subject to paragraph (6), no deduction shall be made under [F210 paragraphs (3)(a), (3A)(a), (4) or (4A), as the case may be,] 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;

(f) any expenses incurred in providing business entertainment.

(6) A deduction shall be made under [F211 paragraphs (3)(a), (3A)(a), (4) or (4A), as the case may be,] in respect of the repayment of capital on any loan used for—

(a) the replacement in the course of business of equipment or machinery; and

(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

(7) An [F212 appropriate officer] shall refuse to make a deduction in respect of any expenses under [F213 paragraphs (3)(a), (3A)(a), (4) or (4A), as the case may be,] where he is not satisfied that the expense has been defrayed or given the nature and the amount of the expense that it has been reasonably incurred.

(8) For the avoidance of doubt—

(a) a deduction shall not be made under [F214 paragraphs (3)(a), (3A)(a), (4) or (4A), as the case may be,] in respect of any sum unless it has been expended for the purposes of the business;

(b) a deduction shall be made thereunder in respect of—

(i) the excess of any VAT paid over VAT 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;

(iii) any payment of interest on a loan taken out for the purposes of the employment.

(9) Where a claimant is engaged in employment as a child minder the net profit of the employment shall be 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 Social Security Act,

calculated in accordance with regulation 23 (deduction of tax and contributions for self-employed earners); and

(b) [F215 one-half of the amount in respect of any qualifying premium calculated in accordance with paragraph (13)].

[F216 (10) Where regulation 15(2) (normal weekly earnings of self-employed earners) applies—

(a) for the purposes of paragraph (1)(a), the net profit derived from the employment shall be calculated by taking into account the claimant’s estimated and, where appropriate, actual earnings from the employment less the amount of the deductions likely to be made and, where appropriate, made under sub-paragraphs (a) to (c) of paragraph (3); or

(b) for the purposes of paragraph (1)(b), his share of the net profit of the employment shall be calculated by taking into account the claimant’s estimated and, where appropriate, his share of the actual earnings from the employment less the amount of his share of the expenses likely to be deducted and, where appropriate, deducted under paragraph (4); or

(c) in the case of employment as a child-minder, the net profit of the employment shall be calculated by taking into account one-third of the claimant’s estimated earnings and, where appropriate, actual earnings from that employment less the amount of the deductions likely to be made and, where appropriate, made under sub-paragraphs (a) and (b) of paragraph (9).]

(11) For the avoidance of doubt where a claimant is engaged in employment as a self-employed earner and he is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

[F217 (12) In this regulation—

(a) “qualifying premium” means any premium which at the date of claim is payable periodically in respect of a retirement annuity contract or a personal pension scheme;]

F218 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F219 (13) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying premium shall 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;

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

Textual Amendments

F201 Words in reg. 22(1)(b)(ii) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(2)

F202 Words in reg. 22(3) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(a)

F203 Words in reg. 22(3) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(a)

F204 Words in reg. 22(3)(c) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(2)

F205 Reg. 22(3A) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(b)

F206 Words in reg. 22(3A)(c) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(2)

F207 Words in reg. 22(4) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(c)

F208 Words in reg. 22(4) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(c)

F209 Reg. 22(4A) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(d)

F210 Words in reg. 22(5) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(e)

F211 Words in reg. 22(6) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(e)

F212 Words in reg. 22(7) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F213 Words in reg. 22(7) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(e)

F214 Words in reg. 22(8) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(e)

F215 Words in reg. 22(9)(b) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(2)

F216 Reg. 22(10) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 6(f)

F217 Words in reg. 22(12) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(3)

F218 Words in reg. 22(12) omitted (with effect in accordance with reg. 1(3) of the amending S.I.) by virtue of The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(3)

F219 Reg. 22(13) added (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 19(4)

Marginal Citations

M39 S.I. 1975/529.

Deduction of tax and contributions for self-employed earners U.K.

23.—(1) The amount to be deducted in respect of income tax under regulation 22(1)(b)(i), (3)(b)(i) [F220 , (3A)(b)(i)] or (9)(a)(i) (calculation of net profit of self-employed earners) shall be calculated on the basis of the amount of chargeable income, and as if that income were assessable to income tax at [F221 the lower rate or, as the case may be, the lower rate and the basic rate of tax] in the year of assessment in which the claim was made, less only the personal relief to which the claimant is entitled under sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970 (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year [F222 the earnings to which the lower rate F223 ... of tax is to be applied and] the amount of the personal relief deductible under this paragraph shall be calculated on a pro rata basis.

(2) The amount to be deducted in respect of social security contributions under regulation 22(1)(b)(i), (3)(b)(ii) [F224 , (3A)(b)(ii)] or (9)(a)(ii) shall be F225 ...—

[F226 (a) [F227 an amount in respect of Class 2 contributions calculated by multiplying the weekly rate of such contributions applicable at the date of claim by virtue of section 11(1) or, as the case may be, (3) of the Contributions and Benefits Act by the number of days in the assessment period and dividing the product by 7,] except where a claimant’s chargeable income is less than the amount specified in [F228 section 11(4)] of that Act M40 (small earnings exception) for the tax year in which the date of claim falls; but if the assessment period is less than a year, the amount specified for that tax year shall be calculated on a pro rata basis; and

(b) the amount of Class 4 contributions (if any) which would be payable under [F229 section 15(3)] of that Act M41 (Class 4 contributions) at the percentage rate applicable at the date of claim 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 in which the date of claim falls; but, if the assessment period is less than a year, those limits shall be calculated on a pro rata basis. ]

[F230 (3) In this regulation “chargeable income” means—

(a) except where sub-paragraph (b) or (c) applies, the earnings derived from the employment, less any expenses deducted under paragraph (3)(a), (3A)(a), (4) or (4A), as the case may be, of regulation 22;

(b) except where sub-paragraph (c)(iii) applies, in the case of employment as a child minder one-third of the earnings of that employment; or

(c) where regulation 15(2) applies (normal weekly earnings of self-employed earners)—

(i) in the case of a self-employed earner who is engaged in employment on his own account, the claimant’s estimated and, where appropriate, actual earnings from the employment less the amount of the deductions likely to be made and, where appropriate, made under sub-paragraph (a) of paragraph (3) of regulation 22;

(ii) in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations 1975, the claimant’s estimated and, where appropriate, his share of the actual earnings from the employment less the amount of his share of the expenses likely to be deducted and, where appropriate, deducted under paragraph (4) of regulation 22;

(iii) in the case of employment as a child minder, one-third of the claimant’s estimated and, where appropriate, actual earnings from that employment.]

Textual Amendments

F220 Words in reg. 23(1) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 7(a)

F221 Words in reg. 23(1) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 8(a)

F222 Words in reg. 23(1) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 8(b)

F223 Words in reg. 23(1) omitted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 14

F224 Words in reg. 23(2) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 7(b)

F225 Words in reg. 23(2) omitted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(7)(a)

F226 Reg. 23(2)(a)(b) substituted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 7

F227 Words in reg. 23(2)(a) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(7)(b)(i)

F228 Words in reg. 23(2)(a) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(7)(b)(ii)

F229 Words in reg. 23(2)(b) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(7)(c)

F230 Reg. 23(3) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 7(c)

Marginal Citations

M40 Section 7(5) was amended by article 3 of S.I. 1986/25 and S.I. 1987/46.

M41 Section 9 was amended by sections 4 and 65 of, and Schedule 5 to, the Social Security Pensions Act 1975 (c. 60), by the Social Security Contributions Act 1982 (c. 2) section 1 and S.I. 1986/25.

CHAPTER V U.K. OTHER INCOME

Calculation of income other than earnings U.K.

24.—(1) For the purposes of regulation 16 (normal weekly income other than earnings), the income of a claimant which does not consist of earnings to be taken into account shall, subject to paragraphs [F231 (2) to (4A)], be his gross income and any capital treated as income under [F232 regulations 25 and 27 (capital treated as income and modifications in respect of children and young persons).]

(2) There shall be disregarded from the calculation of a claimant's gross income under paragraph (1) any sum, where applicable, specified in Schedule 2.

F233 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Where the payment of any benefit under the benefit Acts M42 is subject to any deduction by way of recovery the amount to be taken into account under paragraph (1) shall be the gross amount payable.

[F234 (4A) Where a loan is made to a person pursuant to arrangements made under section 1 of the Education (Student Loans) Act 1990 [F235 or Article 3 of the Education (Student Loans) (Northern Ireland) Order 1990] and that person ceases to be a student before the end of the academic year in respect of which the loan is payable or, as the case may be, before the end of his course, a sum equal to the weekly amount apportionable under paragraph (2) of regulation 42A shall be taken into account under paragraph (1) for each week, in the period over which the loan fell to be apportioned, following the date on which that person ceases to be a student; but in determining the weekly amount apportionable under paragraph (2) of regulation 42A so much of that paragraph as provides for a disregard shall not have effect.]

(5) For the avoidance of doubt there shall be included as income to be taken into account under paragraph (1) any payment to which regulation 19(2) applies (payments not earnings).

Textual Amendments

F231 Words in reg. 24(1) substituted (1.9.1990) by The Social Security Benefits (Student Loans and Miscellaneous Amendments) Regulations 1990 (S.I. 1990/1549), regs. 1(1)(a), 3(2)(a)

F232 Words in reg. 24(1) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 30

F233 Reg. 24(3) omitted (10.4.1990) by Family Credit (General) Amendment Regulations 1990 (S.I. 1990/574), reg. 1(1), 10

F234 Reg. 24(4A) inserted (1.9.1990) by The Social Security Benefits (Student Loans and Miscellaneous Amendments) Regulations 1990 (S.I. 1990/1549), regs. 1(1)(a), 3(2)(b)

F235 Words in reg. 24(4A) inserted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 4

Marginal Citations

M42 The benefit Acts are specified in section 84(1) of the Social Security Act 1986 (c. 50).

Capital treated as income U.K.

25.—(1) Any capital payable by instalments which are outstanding at the date of the claim shall, if the aggregate of the instalments outstanding and the amount of the claimant's capital otherwise calculated in accordance with Chapter VI of this Part exceeds [F236 £8,000], be treated as income.

(2) Any payment received under an annuity shall be treated as income.

(3) [F237 Any Career Development Loan paid pursuant to section 2 of the Employment and Training Act 1973 shall be treated as income.]

Textual Amendments

F236 Word in reg. 25(1) substituted (9.4.1990) by Income-Related Benefits (Miscellaneous Amendments) Regulations 1990 (S.I. 1990/671), reg. 1(1), 3(2)

F237 Reg. 25(3) added (1.4.1997 for specified purposes and , 7.4.1997 for specified purposes and , 7.4.1997 in so far as not already in force, 8.4.1997 for specified purposes and ) by The Income-related Benefits and Jobseeker s Allowance (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/65), reg. 3(3)(d)

Notional income U.K.

26.—(1) A claimant shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to [F238 working families' tax credit] or increasing the amount of that benefit.

(2) [F239 Except in the case of—

(a) a discretionary trust;

(b) a trust derived from a payment made in consequence of a personal injury; or

(c) a personal pension scheme or retirement annuity contract where the claimant is aged under 60;] [F240 or

(d) any sum to which paragraph 46(a) or 47(a) of Schedule 3 (disregard of compensation for personal injuries which is administered by the Court) refers;] [F241 or

(e) rehabilitation allowance made under section 2 of the Employment and Training Act 1973,]

any income which would become available to the claimant upon application being made, but which has not been acquired by him, shall be treated as possessed by the claimant.

[F242 (2A) Where a person, aged not less than 60, is a member of, or a person deriving entitlement to a pension under, a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and—

(a) in the case of a personal pension scheme, he fails to purchase an annuity with the funds available in that scheme where—

(i) he defers, in whole or in part, the payment of any income which would have been payable to him by his pension fund holder;

(ii) he fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid; or

(iii) income withdrawal is not available to him under that scheme; or

(b) in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,

the amount of any income foregone shall be treated as possessed by him, but only from the date one which it could be expected to be acquired were an application for it to be made.

(2B) The amount of any income foregone in a case to which either head (2A)(a)(i) or (ii) applies shall be the maximum amount of income which may be withdrawn from the fund and shall be determined by the [F243 appropriate officer] who shall take account of information provided by the pension fund holder in accordance with regulation 7(5) of the Social Security (Claims and Payments) Regulations 1987.

(2C) The amount of any income foregone in a case to which either head (2A)(a)(iii) or sub-paragraph (2A)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant personal pension scheme or retirement annuity contract been held under a personal pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (2B).]

(3) [F244 Any payment of income, other than a payment of income specified in paragraph (3A)]

[F245 (a) to a third party in respect of a member of [F246 the family] (but not a member of the third party’s family) shall be treated as possessed by that member of the family to the extent that it is used for his food, ordinary clothing or footwear, household fuel F247 ... or housing costs [F248 or is used for any personal community [F249 charge,] collective community charge contribution [F250 or council tax ] for which that member is liable]; and in this sub-paragraph the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities;]

(b) to a member of the family in respect of a third party (but not in respect of another member of that family) shall be treated as possessed by that member to the extent that it is kept by him or used by or on behalf of any member of the family.

[F251 (3A) Paragraph (3) shall not apply in respect of a payment of income made—

(a) under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust or the Independent Living Funds;

(b) pursuant to section 19(1)(a) of the Coal Industry Act 1994 (concessionary coal); or

(c) pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

(i) in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996;

(ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations; or

(iia) [F252 in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the Intensive Activity Period for 50 plus; or]

(iii) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations.]

(4) Where—

(a) a claimant performs a service for another person; and

(b) that person makes no payment of earnings or pays less than that paid for a comparable employment in the area; and

(c) the [F253 appropriate officer] is satisfied that the means of that person are sufficient for him to pay or to pay more for the service,

the [F253 appropriate officer] shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment; but this paragraph shall not apply to a claimant who is engaged by a charitable or [F254 voluntary organisation] or is a volunteer if the [F253 appropriate officer] is satisfied [F255 in any of those cases] that it is reasonable for him to provide his services free of charge [F256 or in a case where the service is performed in connection with the claimant’s participation in an employment or training programme in accordance with regulation 19(1)(q) of the Jobseeker’s Allowance Regulations 1996].

(5) Where a claimant is treated as possessing any income under any of paragraphs (1) to (3), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of that income as if a payment had actually been made and as if it were actual income which he does possess.

(6) Where a claimant is treated as possessing any earnings under paragraph (4), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which he does possess, except that paragraph (3) of regulation 20 (calculation of net earnings of employed earners) shall not apply and his net earnings shall be calculated by taking into account those earnings which he is treated as possessing, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings [F257 the lower rate or, as the case may be, the lower rate and the basic rate of tax] in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970 (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year, [F258 the earnings to which the lower rate F259 ... of tax is to be applied and] the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro rata basis;

[F260 (b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to those earnings the initial and main primary percentages applicable at the date of claim in accordance with section 8(1) (a) and (b) of that Act; and]

(c) one-half of any sum payable by the claimant by way of a contribution towards an occupational or personal pension scheme.

Textual Amendments

F238 Words in reg. 26 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(ix)

F239 Words in reg. 26(2) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(4)(a)

F240 Reg. 26(2)(d) and preceding word inserted (7.10.1997) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(1), 3

F241 Reg. 26(2)(e) and word inserted (1.4.1998 coming into force in accordance with reg. 1(2)(3)(4)(5)(6)) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1, 6(1), (2)(c)

F242 Reg. 26(2A)-(2C) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(4)(b)

F243 Words in reg. 26(2B) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F244 Words in reg. 26(3) substituted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 2(3)(a)

F245 Reg. 26(3)(a) substituted (12.9.1988) by Family Credit (General) Amendment No. 3 Regulations 1988 (S.I. 1988/1438), reg. 1(1)(b), 5

F246 Words in reg. 26(3)(a) substituted (12.9.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 8

F247 Words in reg. 26(3)(a) omitted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 5(a)

F248 Words in reg. 26(3)(a) inserted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 5(b)

F249 Word in reg. 26(3)(a) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(c), Sch. para. 7(a)

F250 Word in reg. 26(3)(a) inserted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(c), Sch. para. 7(b)

F251 Reg. 26(3A) inserted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 2(3)(b)

F252 Reg. 26(3A)(c)(iia) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 6(2)

F253 Words in reg. 26(4) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F254 Words in reg. 26(4) substituted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 13(a)

F255 Words in reg. 26(4) inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 13(b)

F256 Words in reg. 26(4) added (5.1.1998) by The Social Security Amendment (New Deal) Regulations 1997 (S.I. 1997/2863), regs. 1(1), 17(3), (4)(c)

F257 Words in reg. 26(6)(a) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 9(a)

F258 Words in reg. 26(6)(a) inserted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 9(b)

F259 Words in reg. 26(6)(a) omitted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 14

F260 Reg. 26(6)(b) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 20

Modifications etc. (not altering text)

C3 Reg. 26 modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(c)(as amended by (S.I. 2001/1334), regs. 1, 6(4), 6(5))

C4 Reg. 26(3A)(c) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(a)

C5 Reg. 26(4) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(b)(i)

C6 Reg. 26(4) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 14(4)(b)(ii), (as amended by (S.I. 2001/1334), regs. 1, 6(3))

Modifications in respect of children and young persons U.K.

27.—(1) Any capital of a child or young person payable by instalments which are outstanding at the date of claim shall, if the aggregate of the instalments outstanding and the amount of that child's or young person's other capital calculated in accordance with Chapter VI of this Part in like manner as for the claimantF261 ... would exceed £3,000, be treated as income.

(2) Where the income of a child or young person, other than income consisting of payments of maintenance whether under a court order or not, calculated in accordance with [F262 Chapters I to V] of this Part exceeds the sum specified as a credit for that child or young person in Schedule 4 and regulation 46(5) (sum for child or young person who has income in excess to be nil) applies , that income shall not be treated as income of the claimant.

(3) Where the capital of a child or young person, if calculated in accordance with Chapter VI of this Part in like manner as for the claimant, [F263 except as provided in paragraph (1)], would exceed £3,000, any income of that child or young person [F264 , other than income consisting of any payment of maintenance whether under a court order or not,] shall not be treated as income of the claimant.

(4) Any income of a child or young person which is to be disregarded under Schedule 2 shall be disregarded in such manner as to produce the result most favourable to the claimant.

Textual Amendments

F261 Words in reg. 27(1) omitted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 31(2)

F262 Words in reg. 27(1) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 31(3)

F263 Words in reg. 27(3) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 31(4)

F264 Words in reg. 27(3) inserted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 13

CHAPTER VI U.K. CAPITAL

Capital limit U.K.

28.  For the purposes of section 22(6) of the Act as it applies to [F265 working families' tax credit] (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is [F266 £8,000].

Textual Amendments

F265 Words in reg. 28 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(x)

F266 Word in reg. 28 substituted (9.4.1990) by Income-Related Benefits (Miscellaneous Amendments) Regulations 1990 (S.I. 1990/671), reg. 1(1), 3(2)

Calculation of capital U.K.

29.—(1) For the purposes of Part II of the Act as it applies to [F267 working families' tax credit], the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this Part and any income treated as capital under regulation 31 (income treated as capital).

(2) There shall be disregarded from the calculation of a claimant's capital under paragraph (1) any capital, where applicable, specified in Schedule 3.

Textual Amendments

F267 Words in reg. 29 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xi)

Disregard of capital of child or young person U.K.

30.  The capital of a child or young person who is a member of the claimant's family shall not be treated as capital of the claimant.

Income treated as capital U.K.

31.—(1) Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E shall be treated as capital.

(2) Any holiday pay which is not earnings under regulation 19(1)(b) (earnings of employed earners) shall be treated as capital.

[F268 (3)  Any charitable or voluntary payment which is not made or is not due to be made at regular intervals, other than a payment which is made under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) ( No. 2) Trust [F269 , the Fund] [F270 , the Eileen Trust] or [F271 the Independent Living Funds] shall be treated as capital.]

(4) Except any income derived from capital disregarded under paragraph 1, [F272 1A,] 2, 4, 6 [F273 , 13 or 26 to 30] of Schedule 3, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant's account.

(5) In the case of employment as an employed earner, any advance of earnings or any loan made by the claimant's employer shall be treated as capital.

(6) Any maintenance payment other than one to which regulation 16(2) [F274 or (2A)] (normal weekly income other than earnings) applies shall be treated as capital.

[F275 (7) There shall be treated as capital the gross receipts of any commercial activity carried on by a person in respect of which assistance is received under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal), but only in so far as those receipts were payable into a special account (as defined for the purposes of Chapter IVA of Part VIII of those Regulations) during the period in which that person was receiving such assistance.]

[F276 (8) Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as capital.]

[F277 (9) Any bounty derived from employment as a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979 and paid at intervals of at least one year shall be treated as capital.]

Textual Amendments

F268 Reg. 31(3) substituted (11.5.1991) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1991 (S.I. 1991/1175), reg. 1(1), 3(4)

F269 Words in reg. 31(3) inserted (7.5.1992) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1992 (S.I. 1992/1101), regs. 1(1), 4(4)

F270 Words in reg. 31(3) inserted (14.5.1993) by The Income-related Benefits Schemes and Social Security (Recoupment) Amendment Regulations 1993 (S.I. 1993/1249), regs. 1(1)(a), 2(3)(b)

F271 Words in reg. 31(3) substituted (22.4.1993) by The Social Security Benefits (Miscellaneous Amendments) (No. 2) Regulations 1993 (S.I. 1993/963), regs. 1(1)(d), 3(3), (4)

F272 Word in reg. 31(4) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No. 9) Regulations 2001 (S.I. 2001/3454), regs. 1(1), 4

F273 Words in reg. 31(4) substituted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 9

F274 Words in reg. 31(6) inserted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 18

F275 Reg. 31(7) added (1.6.1998) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 (S.I. 1998/1174), regs. 1(1), 7(1), (2)(c)

F276 Reg. 31(8) added (with effect in accordance with reg. 1(1) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 4(1)(b)

F277 Reg. 31(9) added (with effect in accordance with reg. 6(3) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 6(2)

Modifications etc. (not altering text)

C7 Reg. 31(7) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 18(2), (3)(c)

Calculation of capital in the United Kingdom U.K.

32.  Capital which a claimant possesses in the United Kingdom shall be calculated—

(a) except in a case to which sub-paragraph (b) applies, at its current market or surrender value less—

(i) where there would be expenses attributable to sale, 10 per cent; and

(ii) the amount of any incumbrance secured on it;

(b) in the case of a National Savings Certificate—

(i) if purchased from an issue the sale of which ceased before 1st July last preceding the date of claim, at the price which it would have realised on that 1st July had it been purchased on the last day of that issue;

(ii) in any other case, at its purchase price.

Calculation of capital outside the United Kingdom U.K.

33.  Capital which a claimant possesses in a country outside the United Kingdom shall 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;

(b) in a case where there is such a prohibition, at the price which 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 incumbrance secured on it.

Notional capital U.K.

34.—(1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to [F278 working families' tax credit] or increasing the amount of that benefit [F279 except—

(a) where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or

(b) to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 34A (diminishing notional capital rule);] [F280 or

(c) any sum to which paragraph 46(a) or 47(a) of Schedule 3 (disregard of compensation for personal injuries which is administered by the Court) refers,]

(2) Except in the case of—

(a) a discretionary trust;

(b) a trust derived from a payment made in consequence of a personal injury; or

(c) any loan which would be obtainable only if secured against capital disregarded under Schedule 3; [F281 or

(d) a personal pension scheme or retirement annuity contract,]

(e) [F282 any sum to which paragraph 46(a) or 47(a) of Schedule 3 (disregard of compensation for personal injuries which is administered by the Court) refers,]

any capital which would become available to the claimant upon application being made but which has not been acquired by him shall be treated as possessed by him.

(3) [F283 Any payment of capital, other than a payment of capital specified in paragraph (3A)] [F284 of those Regulations] made—

[F285 (a) to a third party in respect of a member of [F286 the family] (but not a member of the third party’s family) shall be treated as possessed by that member of the family to the extent that it is used for his food, ordinary clothing or footwear, household fuel F287 ... or housing costs [F288 or is used for any personal community [F289 charge,] collective community charge contribution [F290 or council tax] for which that member is liable]; and in this sub-paragraph the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities;]

(b) to a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that member to the extent that it is kept by him or used on behalf of any member of the family.

[F291 (3A) Paragraph (3) shall not apply in respect of a payment of capital made—

(a) under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust or the Independent Living Funds; or

(b) pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

(i) in an employment programme specified in regulation 75(1)(a)(ii);

(ii) in a training scheme specified in regulation 75(1)(b)(ii); or

(iia) [F292 in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the Intensive Activity Period for 50 plus; or]

(iii) in a qualifying course within the meaning specified in regulation 17A(7).]

(4) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—

(a) the value of his holding in that company shall, notwithstanding regulation 29 (calculation of capital), be disregarded; and

(b) he shall, subject to paragraph (5), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

(5) For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (4) shall be disregarded.

(6) Where a claimant is treated as possessing capital under any of paragraphs (1) to (4) the foregoing provisions of this Chapter shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.

[F293 (7) For the avoidance of doubt a claimant is to be treated as possessing capital under paragraph (1) only if the capital of which he has deprived himself is actual capital.]

Textual Amendments

F278 Words in reg. 34(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xii)

F279 Words in reg. 34(1) substituted (2.10.1990) by Family Credit (General) Amendment No. 2 Regulations 1990 (S.I. 1990/1774), reg. 1(1), 2

F280 Reg. 34(1)(c) and preceding word inserted (7.10.1997) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(1), 3

F281 Reg. 34(2)(d) and preceding word added (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(5)

F282 Reg. 34(2)(e) and preceding word inserted (7.10.1997) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(1), 3

F283 Words in reg. 34(3) substituted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 3(1)(a)

F284 Words in reg. 34(3) inserted (5.1.1998) by The Social Security Amendment (New Deal) Regulations 1997 (S.I. 1997/2863), regs. 1(1), 17(5), (6)(c)

F285 Reg. 34(3)(a) substituted (12.9.1988) by Family Credit (General) Amendment No. 3 Regulations 1988 (S.I. 1988/1438), reg. 1(1)(b), 5

F286 Words in reg. 34(3)(a) inserted (5.12.1988) by Family Credit (General) Amendment No. 4 Regulations 1988 (S.I. 1988/1970), reg. 1(1), 10(b)

F287 Words in reg. 34(3)(a) omitted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 5(a)

F288 Words in reg. 34(3)(a) inserted (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 5(b)

F289 Word in reg. 34(3)(a) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(c), Sch. para 8(a)

F290 Word in reg. 34(3)(a) inserted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(c), Sch. para 8(b)

F291 Reg. 34(3A) inserted (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 3(1)(b)

F292 Reg. 34(3A)(b)(iia) inserted (24.4.2001) by The Tax Credits (New Deal Consequential Amendments) Regulations 2001 (S.I. 2001/1334), regs. 1, 7(2)

F293 Reg. 34(7) inserted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 9(b)

Modifications etc. (not altering text)

C8 Reg. 34(3A) modified (temp. until 27.11.2001) (28.11.2000) by The Social Security (New Deal Pilot) Regulations 2000 (S.I. 2000/3134), regs. 1(1)(b), 15(2), (3)(c)

[F294 Diminishing notional capital rule U.K.

34A.— (1) Where a claimant is treated as possessing capital under regulation 34(1) (notional capital), the amount which he is treated as possessing—

(a) in the case of a benefit week which 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,

shall be reduced by an amount determined under paragraph (3);

(b) in the case of a benefit 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,

shall be reduced by the amount determined under paragraph (4).

(2) This paragraph applies to a benefit week where the claimant satisfies the conditions that—

(a) he is entitled to [F295 working families' tax credit]; and

(b) but for regulation 34(1), he would have been entitled to an additional amount of [F295 working families' tax credit] in that benefit week.

(3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of—

(a) the additional amount of [F296 working families' tax credit] to which the claimant would have been entitled; and

[F297 (b) if the claimant would, but for regulation 43(1) of the Housing Benefit (General) Regulations 1987 (notional capital), have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week in which the date of the last claim for [F296 working families' tax credit] falls, the amount (if any) which is equal to–

(i) in a case where no housing benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled; and

(c) if the claimant would, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 1989 (notional capital) have been entitled to community charge benefit or to an additional amount of community charge benefit in respect of the benefit week in which the date of the last claim for [F296 working families' tax credit] falls, the amount (if any) which is equal to–

(i) in a case where no community charge benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of community charge benefit to which he would have been [F298 entitled; and]]

[F299 (d) if the claimant would, but for regulation 34(1) of the Council Tax Benefit (General) Regulations 1992 (notional capital), have been entitled to council tax benefit or to an additional amount of council tax benefit in respect of the benefit week in which the date of the last claim for [F296 working families' tax credit] falls, the amount (if any) which is equal to—

(i) in a case where no council tax benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of council tax benefit to which he would have been entitled.]

(4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to [F300 working families' tax credit] in the relevant week but for regulation 34(1) and in such a case the amount shall be equal to the aggregate of—

(a) the amount of [F301 working families' tax credit] to which the claimant would have been entitled in the relevant week but for regulation 34(1); and

[F302 (b) if the claimant would, but for regulation 43(1) of the Housing Benefit (General) Regulations 1987 have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to–

(i) in a case where no housing benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled; and

(c) if the claimant would, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 1989 have been entitled to community charge benefit or to an additional amount of community charge benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to–

(i) in a case where no community charge benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of community charge benefit to which he would have been [F303 entitled; and]]

[F304 (d) if the claimant would, but for regulation 34(1) of the Council Tax Benefit (General) Regulations 1992 (notional capital), have been entitled to council tax benefit or to an additional amount of council tax benefit in respect of the benefit week in which the first day of the relevant week falls, the amount (if any) which is equal to—

(i) in a case where no council tax benefit is payable, the amount to which he would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of council tax benefit to which he would have been entitled.]

(5) The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for [F305 working families' tax credit] and the conditions in paragraph (6) are satisfied, and in such a case—

(a) sub-paragraphs (a), (b) and (c) of paragraph (4) shall apply as if for the words “relevant week” there were substituted the words “relevant subsequent week”; and

(b) subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

(6) The conditions are that—

(a) a further claim is made 22 or more weeks after—

(i) the first day of the relevant week;

(ii) in a case where there has been at least one re-determination in accordance with paragraph (5), the first day of the relevant subsequent week which last occurred;

whichever last occurred; and

(b) the claimant would have been entitled to [F306 working families' tax credit] but for regulation 34(1).

(7) The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

(8) For the purposes of this regulation—

(a) “benefit week” has the meaning prescribed in regulations 16 (date of entitlement under an award) and 27 ([F307 working families' tax credit]) of the Social Security (Claims and Payments) Regulations 1987 except where it appears in paragraphs [F308 (3)(b), (c) and (d) and (4)(b), (c) and (d)] where it has the meaning prescribed in regulation 2(1) of the Housing Benefit (General) Regulations [F309 1987 (interpretation),] regulation 2(1) of the Community Charge Benefits (General) Regulations 1989 (interpretation) [F310 or regulation 2(1) of the Council Tax Benefit (General) Regulations 1992 (interpretation)] as the case may be;

(b) “relevant week” means the benefit week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 34(1)—

(i) was for the first time taken into account for the purpose of determining his entitlement to [F307 working families' tax credit]; or

(ii) was taken into account on a subsequent occasion for that purpose other than in respect of either a benefit week to which paragraph (2) applies or a further claim to which paragraph (5) applies;

and, where more than one benefit week is identified by reference to heads (i) and (ii) of this sub-paragraph, the later or latest such benefit week;

(c) “relevant subsequent week” means the benefit week in which any award of [F307 working families' tax credit] in respect of the further claim referred to in paragraph (6)(a) would, but for regulation 34(1), have commenced, but it shall not be earlier than the twenty-seventh week after the week in which the existing amount took effect.]

Textual Amendments

F294 Reg. 34A inserted (2.10.1990) by Family Credit (General) Amendment No. 2 Regulations 1990 (S.I. 1990/1774), reg. 1(1), 3

F295 Words in reg. 34A(2) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F296 Words in regs. 34A(3)(a)-(d) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F297 Reg. 34A(3)(b)(c) (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 6(a)

F298 Words in reg. 34A(3)(c)(ii) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(2)(a)

F299 Reg. 34A(3)(d) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(2)(b)

F300 Words in reg. 34A(4) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F301 Words in reg. 34A(4)(a) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F302 Reg. 34A(4)(b)(c) (8.10.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 6(b)

F303 Words in reg. 34A(4)(c)(ii) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(3)(a)

F304 Reg. 34A(4)(d) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(3)(b)

F305 Words in reg. 34A(5) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F306 Words in reg. 34A(6)(b) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F307 Words in regs. 34A(8)(a)-(c) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiii)

F308 Words in reg. 34A(8)(a) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(4)(a)

F309 Words in reg. 34A(8)(a) substituted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(4)(b)

F310 Words in reg. 34A(8)(a) inserted (1.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), Sch. para 9(4)(c)

Capital jointly held U.K.

35.  Except where a claimant possesses capital which is disregarded under regulation 34(4) (notional capital), where a claimant and one or more persons are beneficially entitled in possession to any capital asset they shall be treated as if each of them were entitled in possession [F311 [F312 to the whole beneficial interest therein in an equal share and the foregoing provisions of this Chapter shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess]]

Textual Amendments

F311 Words in reg. 35 substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(b), 4(6)

F312 Words in reg. 35 substituted (12.10.1998) by The Social Security Amendment (Capital) Regulations 1998 (S.I. 1998/2250), regs. 1, 2(1), (2)(c)

Calculation of tariff income from capital U.K.

36.—(1) Where the claimant's capital calculated in accordance with this Chapter exceeds £3,000, it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £3,000 but not exceeding [F313 £8,000].

(2) Notwithstanding paragraph (1), where any part of the excess is not a complete £250 that part shall be treated as equivalent to a weekly income of £1.

(3) For the purposes of paragraph (1), capital includes any income treated as capital under regulation 31 (income treated as capital).

Textual Amendments

F313 Word in reg. 36(1) substituted (9.4.1990) by Income-Related Benefits (Miscellaneous Amendments) Regulations 1990 (S.I. 1990/671), reg. 1(1), 3(2)

CHAPTER VII U.K. STUDENTS

Interpretation U.K.

37.  In this Chapter, unless the context otherwise requires—

[F314 “access fund payment” means a payment for further and higher education students made under section 7 or 68 of the Further and Higher Education Act 1992 or section 73 of the Education (Scotland) Act 1980;]

“a course of advanced education” means—

(a)

a full-time course leading to a postgraduate degree or comparable qualification, a first degree or comparable qualification, a diploma of higher education, a higher national diploma, [F315 a higher national diploma or higher national certificate of either the Business & [F316 Technology] Education Council] or the Scottish Vocational Education Council or a teaching qualification; or

(b)

any other full-time course which is a course of a standard above ordinary national diploma, [F317 a national diploma or national certificate of either the Business & [F318 Technology] Education Council or the Scottish Vocational Education Council], a general certificate of education (advanced level), a Scottish certificate of education [F319 (higher level)] or a Scottish certificate of sixth year studies;

“contribution” means any contribution in respect of the income [F320 of a student or] of any other person which [F321 the Secretary of State, the Scottish Ministers] or an education authority takes into account in assessing the amount of the student's grant [F322 or student loan; or any sums, which in determining the amount of the student’s allowance or bursary in Scotland in terms of the Students' Allowances (Scotland) Regulations 1996 or the Education Authority (Bursaries) (Scotland) Regulations 1995, [F323 the Scottish Ministers or education authority take] into account being sums which [F324 the Scottish Ministers or the education authority consider] that the holder of the allowance or bursary, the holder’s parents and the holder’s spouse can reasonably be expected to contribute towards the holder’s expenses;]

“course of study” means any F325 ... course of study or sandwich course whether or not a grant is made for attending it;

“covenant income” means the gross income payable to a student under a Deed of Covenant by a person whose income is, or is likely to be, taken into account in assessing the student's grant or award;

[F326 “daily living costs” means food, ordinary clothing or footwear, household fuel or housing costs;]

“education authority” means a government department, [F327 a local authority as defined in section 579 of the Education Act 1996 (interpretation)], an education authority as defined in section 135(1) of the Education (Scotland) Act 1980 M43 (interpretation), an education and library board established under Article 3 of the Education and Libraries (Northern Ireland) Order 1986 M44 , any body which is a research council for the purposes of the Science and Technology Act 1965 M45 or any analogous government department, authority, board or body of the Channel Islands, Isle of Man or any other country outside Great Britain;

“grant” means any kind of educational grant or award and includes any scholarship, studentship, exhibition, allowance or bursary [F328 but does not include a payment derived from funds made available by the Secretary of State [F329 or the Scottish Ministers] for the purpose of assisting students in financial difficulties under section 100 of the Education Act 1944, sections 131 and 132 of the Education Reform Act 1988 or section 73 of the Education (Scotland) Act 1980];

“grant income” means—

(a)

any income by way of a grant;

(b)

any contribution which has been assessed whether or not it has been paid,

and any such contribution which is paid by way of a covenant shall be treated as part of the student's grant income;

[F330 “last day of the course” means the date on which the last day of the final academic term falls in respect of the course in which the student is enrolled;]

[F331 “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities;]

“period of study” means—

(a)

in the case of a course of study for one year or less, the period beginning with the start of the course [F332 and ending with the last day of the course],

(b)

in the case of a course of study for more than one year, in the first or, as the case may be, any subsequent year of the course, [F333 other than the final year of the course,] the period beginning with the start of the course or, as the case may be, that year's start and ending with either—

(i)

the day before the start of the next year of the course in a case where the student's grant [F334 or loan] is assessed at a rate appropriate to his studying throughout the year, or, if he does not have a grant [F335 or loan] , where it would have been assessed at such a rate had he had one; or

(ii)

in any other case the day before the start of the normal summer vacation appropriate to his course;

(c)

[F336 in the final year of a course of study of more than one year, the period beginning with that year’s start and ending with the last day of the course;]

“periods of experience” has the meaning prescribed in paragraph 1(1) of Schedule 5 to the Education (Mandatory Awards) Regulations [F337 1998];

[F338 “sandwich course” has the meaning given by regulation 5(2) of the Education (Student Support) Regulations 2000 or regulation 5(3) of the Education (Student Loans) (Scotland) Regulations 1999,]

“standard maintenance grant” means—

(a)

except where paragraph (b) applies, in the case of a student attending a course of study at the University of London or an establishment within the area comprising the City of London and the Metropolitan Police District, the amount specified for the time being in paragraph 2(2)(a) of Schedule 2 to the Education (Mandatory Awards) Regulations [F339 1998] for such a student; and

(b)

in the case of a student residing at his parents' home, the amount specified in paragraph 3(2) thereof;

(c)

in any other case, the amount specified in paragraph 2(2) other than in sub-paragraph (a) or (b) thereof;

“student” [F340 means a person, other than a person in receipt of a training allowance, who is aged less than 19 and attending a full-time course of advanced education or, as the case may be, who is aged 19 or over and attending a F341 ... course of study] at an educational establishment; and for the purposes of this definition—

(a)

a person who has started on such a course shall be treated as attending it F342 ... until [F343 the last day of the course] or such earlier date as he abandons it or is dismissed from it;

(b)

a person on a sandwich course shall be treated as attending a full-time course of advanced education or, as the case may be, of study;

[F344 “student loan” means a loan towards a student’s maintenance pursuant to any regulations made under section 22 of the Teaching and Higher Education Act 1998, section 73 of the Education (Scotland) Act 1980 or Article 3 of the Education (Student Support) (Northern Ireland) Order 1998;

“year”, in relation to a course, means the period of 12 months beginning on 1st January, 1st April, 1st July or 1st September according to whether the academic year of the course begins in the winter, the spring, the summer or the autumn respectively, but if students are required to begin attending the course during August or September and to continue attending through the autumn the academic year of the course shall be considered to begin in the autumn rather than the summer.]

Textual Amendments

F314 Words in reg. 37 inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(a)

F315 Words in reg. 37 substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 10(a)

F316 Words in reg. 37 substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 32

F317 Words in reg. 37 substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 10(b)(i)

F318 Words in reg. 37 substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 32

F319 Words in reg. 37 substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 10(b)(ii)

F320 Words in reg. 37 inserted (1.4.1998 coming into force in accordance with reg. 1(2)(3)(4)(5)(6)) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1, 4(1), (2)(c)

F321 Words in reg. 37 substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 (S.I. 2001/2539), regs. 1(1), 4(a)

F322 Words in reg. 37 substituted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(2)(a)

F323 Words in reg. 37 substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 (S.I. 2001/2539), regs. 1(1), 4(b)

F324 Words in reg. 37 substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 (S.I. 2001/2539), regs. 1(1), 4(c)

F325 Words in reg. 37 omitted (with effect in accordance with reg. 7(4) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 7(2)

F326 Words in reg. 37 inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(b)

F327 Words in reg. 37 substituted (5.5.2010) by The Local Education Authorities and Children’s Services Authorities (Integration of Functions) (Local and Subordinate Legislation) Order 2010 (S.I. 2010/1172), art. 1(1), Sch. 3 para. 14

F328 Words in reg. 37 added (1.9.1990) by The Social Security Benefits (Student Loans and Miscellaneous Amendments) Regulations 1990 (S.I. 1990/1549), regs. 1(1)(a), 3(3)

F329 Words in reg. 37 inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 (S.I. 2001/2539), regs. 1(1), 5

F330 Words in reg. 37 inserted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 7(a)

F331 Words in reg. 37 inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(c)

F332 Words in reg. 37 substituted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 7(b)(i)

F333 Words in reg. 37 inserted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 7(b)(ii)

F334 Words in reg. 37 inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(d)

F335 Words in reg. 37 inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(d)

F336 Words in reg. 37 inserted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 7(b)(iii)

F337 Words in reg. 37 substituted (1.9.1998) by The Education (Mandatory Awards) Regulations 1998 (S.I. 1998/1166)

F338 Words in reg. 37 substituted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 4(e)

F339 Words in reg. 37 substituted (1.9.1998) by The Education (Mandatory Awards) Regulations 1998 (S.I. 1998/1166)

F340 Words in reg. 37 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 9

F341 Words in reg. 37 omitted (with effect in accordance with reg. 7(4) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 7(3)

F342 Words in reg. 37 omitted (1.8.1995) by The Social Security Benefits (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/1742), regs. 1(1), 2(c)

F343 Words in reg. 37 substituted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 7(c)

F344 Words in reg. 37 substituted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(2)(b)

Marginal Citations

M43 1980 c. 44.

M44 S.I. 1986/594 (NI 3).

M45 1965 c. 4.

Calculation of grant income U.K.

38.—(1) The amount of a student's grant income to be taken into account shall, subject to [F345 paragraphs (2) [F346 , (2A) and (2B)]], be the whole of his grant income.

(2) There shall be disregarded from a student's grant income any payment—

(a) intended to meet tuition fees or examination fees;

F347 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) intended to meet additional expenditure incurred by a disabled student in respect of his attendance on a course;

(d) intended to meet additional expenditure connected with term time residential study away from the student's educational establishment;

(e) on account of the student maintaining a home at a place other than that at which he resides during his course;

(f) intended to meet the cost of books and equipment F348 ... F349 ...;

(g) intended to meet travel expenses incurred as a result of his attendance on the course.

[F350 (h) that is an access fund payment and is intended to be used for any item other than daily living costs of any member of the student’s family or is used for any personal community charge, collective community charge contribution or council tax for which any member of that family is liable.]

[F351 (j) that is made in respect of childcare costs pursuant to—

(i) sections 5, 6 and 9 of the Learning and Skills Act 2000;

(ii) section 4 of the Further Education and Higher Education (Scotland) Act 1992;

(iii) Article 5 of the Further Education (Northern Ireland) Order 1997;

(iv) the Education (Student Support) Regulations 2001;

(v) the Students' Allowances (Scotland) Regulations 1999; or

(vi) the Education (Student Support) Regulations (Northern Ireland) 2001;

provided that the claimant’s award does not include an amount of childcare tax credit under regulation 46(1)(ab).]

[F352 (2A) Where a student does not have a student loan and is not treated as possessing such a loan, there shall be excluded from the student’s grant income—

(a) the sum of [F353 £265] in respect of travel costs; and

(b) where no amount has been disregarded under sub-paragraph (2)(f), the sum of [F354 £327] towards the cost of books and equipment,

whether or not any such costs are incurred.]

[F355 (2B) There shall be disregarded from a student’s grant income £20 of any weekly access fund payment used for daily living costs of any member of the student’s family or, where any access fund payment so used covers a period of more than a week, £20 for each complete week covered by the payment.]

(3) A student's grant income [F356 shall, subject to paragraph (4), be apportioned equally between the weeks in the period of 52 weeks beginning with the start of the academic year in respect of which the grant is payable.]

F357 (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In the case of a student on a sandwich course, any periods of experience within the period of study shall be excluded and the student's grant income shall be apportioned equally between the remaining weeks in that period.

Textual Amendments

F345 Words in reg. 38 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 10(A)

F346 Words in reg. 38 substituted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 5(a)

F347 Reg. 38(2)(b) omitted (8.10.1996) by virtue of The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs. 1(b), 4(2)(a) (with reg. 13)

F348 Words in reg. 38(2)(f) omitted (8.10.1996) by virtue of The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs. 1(b), 4(2)(b) (with reg. 13)

F349 Words in reg. 38(2)(f) omitted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by virtue of The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(3)(a)

F350 Words in reg. 38(2)(h) inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 5(b)

F351 Reg. 38(2)(j) added (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 (S.I. 2001/2539), regs. 1(1), 8

F352 Reg. 38(2A) substituted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(3)(b)

F353 Word in reg. 38(2A)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.3) Regulations 2002 (S.I. 2002/1333), regs. 1(1)(a), 3(1), (2)(a)

F354 Word in reg. 38(2A)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.3) Regulations 2002 (S.I. 2002/1333), regs. 1(1)(a), 4(1), (2)(a)

F355 Reg. 38(2B) added (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 5(d)

F356 Words in reg. 38(3) substituted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 5(e)

F357 Reg. 38(3A) omitted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 5(f)

Calculation of covenant income where a contribution is assessed U.K.

39.—(1) Where a student is in receipt of income by way of a grant during a period of study and a contribution has been assessed, the amount of his covenant income to be taken into account shall be the whole amount of his covenant income less, subject to paragraph (3), the amount of the contribution.

(2) The weekly amount of the student's covenant income shall be determined—

(a) by dividing the amount of income which falls to be taken into account under paragraph (1) by 52; and

(b) by disregarding from the resulting amount, £5.

(3) F358 For the purposes of paragraph (1), the contribution shall be treated as increased by the amount, if any, by which the amount excluded under regulation [F359 regulation 38(2)(g) (calculation of grant income) falls short of the amount specified in paragraph 7(4)(i) of Schedule 2 to the Education (Mandatory Awards) Regulations 1991 (travel expenditure).]

Textual Amendments

F358 Reg. 39(3) modified (1.9.1998) by The Education (Mandatory Awards) Regulations 1998, SI 1998/1166, reg. 1, Sch. 2

F359 Words in reg. 39 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 11

Covenant income where no grant income or no contribution is assessed U.K.

40.—(1) Where a student is not in receipt of income by way of a grant the amount of his covenant income shall be calculated as follows—

(a) any sums intended for any expenditure specified in regulation 38(2)(a) to (e) (calculation of grant income), necessary as a result of his attendance on the course, shall be disregarded;

(b) any covenant income, up to the amount of the standard maintenance grant, which is not so disregarded shall be apportioned equally between the weeks of the period of study and there shall be disregarded from the covenant income to be so apportioned the amount which would have been disregarded under [F360 regulation 38(2)(f) and (g) and (2A)] had the student been in receipt of the standard maintenance grant; and

(c) the balance, if any, shall be divided by 52 and treated as weekly income of which £5 shall be disregarded.

(2) Where a student is in receipt of income by way of a grant and no contribution has been assessed, the amount of his covenant income shall be calculated in accordance with sub-paragraphs (a) to (c) of paragraph (1), except that—

(a) the value of the standard maintenance grant shall be abated by the amount of his grant income less an amount equal to the amount of any sums disregarded under regulation 38(2)(a) to (e); and

(b) the amount to be disregarded under paragraph (1)(b) shall be abated by an amount equal to the amount of any sums disregarded under [F361 regulation 38(2)(f) and (g) and (2A)].

Textual Amendments

F360 Words in reg. 40(1)(b) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 12

F361 Words in reg. 40(2)(b) substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 12

Relationship with amounts to be disregarded under Schedule 2 U.K.

41.  No part of a student's covenant income or grant income shall be disregarded under paragraph 13 of Schedule 2 and any [F362 other income to which sub-paragraph (1) of that paragraph applies shall be disregarded thereunder only to the extent that] the amount disregarded under regulation 39(2)(b) (calculation of covenant income where a contribution is assessed) or, as the case may be, 40(1)(c) (covenant income where no grant income or no contribution is assessed) is less than [F363 £20].

Textual Amendments

F362 Words in reg. 41 substituted (10.4.1990) by Family Credit (General) Amendment Regulations 1990 (S.I. 1990/574), reg. 1(1), 13(a)

F363 Word in reg. 41 substituted (9.4.1996) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/462), regs. 1(5), 8(e)

Other amounts to be disregarded U.K.

42.  For the purposes of ascertaining income [F364 other than grant income, covenant income and loans treated as income in accordance with regulation 42A], any amounts intended for any expenditure specified in regulation 38(2) (calculation of grant income) necessary as a result of his attendance on the course shall be disregarded but only if, and to the extent that, the necessary expenditure exceeds or is likely to exceed the amount of the sums disregarded under regulation 38(2) [F365 and (2A)], 39(3) [F366 , 40(1)(a) or (b) and 42A(5) (calculation of grant income, covenant income and treatment of student loans)] on like expenditure.

Textual Amendments

F364 Words in reg. 42 substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 21(a)

F365 Words in reg. 42 inserted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 21(b)

F366 Words in reg. 42 substituted (with effect in accordance with reg. 1(1)(d) of the amending S.I. 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(4)

[F367 Calculation of capital—lump sum access fund payment U.K.

42ZA.   There shall be disregarded from the calculation of a student’s capital under regulation 29(1) any lump sum access fund payment made to the student that is not intended to be used for daily living costs, but only for a period of 52 weeks from the date of receipt of the payment.]

Textual Amendments

F367 Reg. 42ZA inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 6

[F368 Treatment of student loans U.K.

42A— [F369 (1) A student loan [F370 , other than an additional loan on the grounds of hardship made under regulation 21 of the Education (Student Support) Regulations 2000 or regulation 12 of the Education (Student Loans) (Scotland) Regulations 1999,] shall be treated as income.]

(2) In calculating the weekly amount of the loan to be taken into account as income—

(a) except where sub-paragraph (b) applies, the loan shall be apportioned equally between the weeks in [F371 the period of 52 weeks beginning with the start of] the academic year in respect of which the loan is payable;

(b) in the case of a loan which is payable in respect of the final academic year of the course or, if the course is only of one academic year’s duration, in respect of that year, the loan shall be apportioned equally between the weeks in the period beginning with the start of the final academic year or, as the case may be, the single academic year and ending with [F372 the last day of the course],

and from the weekly amount so apportioned there shall be disregarded £10.]

[F373 (3) A student shall be treated as possessing a student loan in respect of an academic year where—

(a) a student loan has been made to him in respect of that year; or

(b) he could acquire such a loan in respect of that year by taking reasonable steps to do so.

(4) Where a student is treated as possessing a student loan under paragraph (3), the amount of the student loan to be taken into account as income shall be, subject to paragraph (5)—

(a) in the case of a student to whom a student loan is made in respect of an academic year, a sum equal to—

(i) the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so; and

(ii) any contribution whether or not it has been paid to him;

(b) in the case of a student to whom a student loan is not made in respect of an academic year, the maximum student loan that would be made to the student if—

(i) he took all reasonable steps to obtain the maximum student loan he is able to acquire in respect of that year; and

(ii) no deduction in that loan was made by virtue of the application of a means test.

(5) There shall be deducted from the amount of income taken into account under paragraph (4)—

(a) the sum of [F374 £265] in respect of travel costs; and

(b) where no amount has been disregarded under regulation 38(2)(f), the sum of [F375 £327] towards the cost of books and equipment,

whether or not any such costs are incurred.]

Textual Amendments

F368 Reg. 42A inserted (1.9.1990) by The Social Security Benefits (Student Loans and Miscellaneous Amendments) Regulations 1990 (S.I. 1990/1549), regs. 1(1)(a), 3(5)

F369 Reg. 42A(1) substituted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(5)(a)

F370 Words in reg. 42A inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 7(a)

F371 Words in reg. 42A(2)(a) inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(3), 7(b)

F372 Words in reg. 42A(2)(b) substituted (6.8.1991) by The Family Credit (General) Amendment Regulations 1991 (S.I. 1991/1520), reg. 1(1), 9(b)

F373 Regs. 42A(3)-(5) substituted for reg. 42A(3) (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(5)(b)

F374 Word in reg. 42A(5)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.3) Regulations 2002 (S.I. 2002/1333), regs. 1(1)(a), 3(1), (2)(a)

F375 Word in reg. 42A(5)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.3) Regulations 2002 (S.I. 2002/1333), regs. 1(1)(a), 4(1), (2)(a)

Disregard of contribution U.K.

43.  Where the claimant or his partner is a student and [F376 , for the purposes of assessing a contribution to the student’s grant [F377 or student loan], the other partner’s income has been taken into account, an amount equal to that contribution shall be disregarded for the purposes of assessing that other partner’s income.]

Textual Amendments

F376 Words in reg. 43 substituted (9.4.1996) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/462), regs. 1(5), 10(1), (2)(d)

F377 Words in reg. 43 inserted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(6)

[F378 Further disregard of student’s income U.K.

43A.   Where any part of a student’s income has already been taken into account for the purposes of assessing his entitlement to a grant [F379 or student loan], the amount taken into account shall be disregarded in assessing that student’s income.]

Textual Amendments

F378 Reg. 43A inserted (1.4.1998 coming into force in accordance with reg. 1(2)(3)(4)(5)(6)) by The Social Security (Miscellaneous Amendments) Regulations 1998 (S.I. 1998/563), regs. 1, 4(3), (4)(c)

F379 Words in reg. 43A inserted (with effect in accordance with reg. 1(1)(d) of the amending S.I., 31.8.1999 in so far as not already in force) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(d), 6(7)

Disregard of tax refund U.K.

44.  Any amount by way of a refund of tax deducted from a student's covenant income shall be disregarded in calculating the student's income or capital.

Disregard of changes occurring during summer vacation U.K.

45.  In calculating a student's income there shall be disregarded any change in the standard maintenance grant occurring in the recognised summer vacation appropriate to the student's course, if that vacation does not form part of his period of study, from the date on which the change occurred to the end of that vacation.

PART V U.K. CALCULATION OF ENTITLEMENT

Determination of appropriate maximum [F380 working families' tax credit] U.K.

46.— [F381 (1) Subject to paragraphs (2) to (7) of this regulation, the appropriate maximum working families' tax credit shall be the aggregate of the following credits—

(a) in respect of a claimant or, if he is a member of a married or unmarried couple, in respect of the couple, the credit specified in column (2) of the table in Schedule 4 at paragraph 1;

(b) in respect of a lone parent who works, or in respect of a claimant who is a member of a married or unmarried couple either or both of whom work, for not less than 30 hours per week, the credit specified in column (2) of the table in Schedule 4 at paragraph 2;

(c) in a case to which regulation 46(A) applies, a credit (“childcare tax credit”) equal to 70 per cent. of the amount of any relevant childcare charges as mentioned and calculated on a weekly basis in regulation 46A, subject to a maximum in respect of the claimant’s family of whichever the amounts specified in paragraph (1A) applies in the claimant’s case;

(d) in respect of a lone parent to whom paragraph (1D) applies, or, where the claimant is a member of a married or unmarried couple to either or both of whom paragraph (1D) applies, in respect of the couple, the credit specified in column (2) of the table in Schedule 4 at paragraph 3;

(e) in respect of any child or young person for whom the claimant or his partner is treated as responsible by virtue of regulation 7, the credit specified in column (2) of the table in Schedule 4 at paragraph 4 or 5 as appropriate in respect of the period specified in that paragraph;

(f) in respect of any child or young person for whom the claimant or his partner is treated as responsible by virtue of regulation 7 and who is a member of the claimant’s household—

(i) where paragraph (1B) applies, and paragraph (1D) does not apply, to the child or young person, the credit specified in column (2) of the table in Schedule 4 at paragraph 6(a);

(ii) where paragraph (1D) applies to the child or young person, the credit specified in column (2) of that table at paragraph 6(b).]

[F382 (1A) The maximum amount to which paragraph [F383 (1)(c)] refers shall be–

(a) where the claimant’s family includes only one child in respect of whom relevant childcare charges are paid, [F384 £135] per week;

(b) where the claimant’s family includes more than one child in respect of whom relevant childcare charges are paid, [F385 £200] per week.]

[F386 (1B) This paragraph applies to a child or young person F387 ...—

(a) in respect of whom disability living allowance is payable, or has ceased to be payable solely because he is a patient; or

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

(c) who ceased to be registered as blind in such a register within the 28 weeks immediately preceding the date of claim.

(1C) For the purposes of paragraph (1B)(a), “patient” has the same meaning as in regulation 8(3)(a).]

[F388 (1D)  This paragraph applies to either of the following persons—

(a) a person in respect of whom the care component of disability living allowance is, or would but for either a suspension of benefit in accordance with regulations under section 113(2) of the Contributions and Benefits Act or an abatement as a consequence of hospitalisation, be payable at the highest rate prescribed under section 72(3) of that Act, and

(b) a person in respect of whom attendance allowance is, or would but for either a suspension of benefit in accordance with regulations under section 113(2) of that Act or an abatement as a consequence of hospitalisation, be payable at the higher rate referred to in section 65(3) of that Act.]

(2) Where a claimant or, as the case may be, the partner of a claimant is married polygamously to two or more members of the same household, the maximum amount shall include, in respect of every such member but the first, an additional credit which [F389 equals the credit specified in column (2) [F390 of the table in Schedule 4 at paragraph 5] .]

(a) in the case of a person aged less than 18 years, the credit specified in column (2) of Schedule 4 against paragraph 3(a) in column (1); or

(b) in any other case, the credit specified in column (2) of Schedule 4 against paragraph 3(b) in column (1).

(3) For the purposes of paragraph (2), a person shall not be treated as a member of the same household as someone to whom he is married polygamously if he would not be so treated in the case of a monogamous marriage.

(4) Where the capital of a child or young person, if calculated in accordance with Part IV (income and capital) in like manner as for the claimant, [F391 except as provided in regulation 27(1) (modifications in respect of children and young persons)], would exceed £3,000, the credit in respect of that child or young person shall be nil.

(5) Where the income of a child or young person, other than income consisting of payments of maintenance whether under a court order or not, calculated in accordance with Part IV, exceeds the amount [F392 or amounts] specified for that child or young person in Schedule 4, the credit in respect of that child or young person shall be nil.

(6) Where a child or young person is, for the purposes of regulation 8(2)(a) (membership of the same household), a patient or in residential accommodation on account of physical or mental handicap or physical or mental illness and has been so accommodated for the 52 weeks immediately before the date of claim, the credit in respect of that child or young person shall be nil.

[F393 (7) For the purposes of this regulation the amount of any credit and the [F394 period during which that amount is appropriate in respect] of any child or young person shall be determined by reference to the credit specified in Schedule 4 and the [F395 relevant period which includes] the date on which the period under [F396 section 128(3) of the Contributions and Benefits Act] (period of award) begins.]

Textual Amendments

F380 Reg. 46 heading substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xiv)

F381 Reg. 46(1) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits Schemes (Miscellaneous Amendments No.2) Regulations 2001 (S.I. 2001/367), regs. 1(1), 3(2)

F382 Reg. 46(1A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 7(3)

F383 Words in reg. 46(1A) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits Schemes (Miscellaneous Amendments No.2) Regulations 2001 (S.I. 2001/367), regs. 1(1), 3(3)

F384 Word in reg. 46(1A)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 5) Regulations 2001 (S.I. 2001/1351), regs. 1(1), 3(a)

F385 Word in reg. 46(1A)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 5) Regulations 2001 (S.I. 2001/1351), regs. 1(1), 3(b)

F386 Reg. 46(1B)(1C) inserted (with effect in accordance with reg. 1(1)(3)) by The Tax Credits Schemes (Miscellaneous Amendments No. 3) Regulations 2000 (S.I. 2000/1807), regs. 1(1)(2), 8(b)

F387 Words in reg. 46(1B) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of Tax Credits Schemes (Miscellaneous Amendments No.2) Regulations 2001 (S.I. 2001/367), regs. 1(1), 3(4)

F388 reg. 46(1D) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.3) Regulations 2002 (S.I. 2002/1333), regs. 1(1)(b), 5(2)

F389 Words in reg. 46(2) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 5(3)

F390 Words in reg. 46(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits Schemes (Miscellaneous Amendments No.2) Regulations 2001 (S.I. 2001/367), regs. 1(1), 3(6)

F391 Words in reg. 46(4) substituted (5.10.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 4) Regulations 1993 (S.I. 1993/2119), regs. 1(1)(b), 33

F392 Words in reg. 46(5) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits Schemes (Miscellaneous Amendments No.2) Regulations 2001 (S.I. 2001/367), regs. 1(1), 3(7)

F393 Reg. 46(7) added (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 11(b)

F394 Words in reg. 46(7) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 5(4)(a)

F395 Words in reg. 46(7) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 5(4)(a)

F396 Words in reg. 46(7) substituted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 14

Modifications etc. (not altering text)

C9 Reg. 46(1A)(a) modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Order 2001 (S.I. 2001/1141), arts. 1(1), 3(a)(i)

C10 Reg. 46(1A)(a) modified (with effect in accordance with art. 1(2) of the amending S.I.) by Tax Credits Up-rating Order 2002 (S.I. 2002/829), arts. 1(1), 3(a)(i)

C11 Reg. 46(1A)(b) modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Order 2001 (S.I. 2001/1141), arts. 1(1), 3(a)(ii)

C12 Reg. 46(1A)(b) modified (with effect in accordance with art. 1(2) of the amending S.I.) by Tax Credits Up-rating Order 2002 (S.I. 2002/829), arts. 1(1), 3(a)(ii)

C13 Reg. 46(4) sum amended (11.4.1989) by The Social Security Benefits Up-rating Order 1989 (S.I. 1989/43), arts. 1(2), 13(a) (with art. 20)

C14 Reg. 46(4)(5)(6) sum amended (10.4.1990) by The Social Security Benefits Up-rating Order 1990 (S.I. 1990/320), arts. 1(2)(d), 12(b)

C15 Reg. 46(4) sum amended (10.4.1990) by The Social Security Benefits Up-rating Order 1990 (S.I. 1990/320), arts. 1(2)(d), 12(a)

C16 Reg. 46(4) sum confirmed (9.4.1991) by The Social Security Benefits Up-rating Order 1991 (S.I. 1991/503), arts. 1(2)(e), 12(a)

C17 Reg. 46(4)(5)(6) sum confirmed (9.4.1991) by The Social Security Benefits Up-rating Order 1991 (S.I. 1991/503), arts. 1(2)(e), 12(b)

C18 Reg. 46(4) sum amended (7.4.1992) by The Social Security Benefits Up-rating (No. 2) Order 1991 (S.I. 1991/2910), arts. 1(2)(e), 12(a)

C19 Reg. 46(4) modified (13.4.1993) by The Social Security Benefits Up-rating Order 1993 (S.I. 1993/349), arts. 1(2)(e), 14(a) (with art. 21)

C20 Reg. 46(4)(5)(6) modified (13.4.1993) by The Social Security Benefits Up-rating Order 1993 (S.I. 1993/349), arts. 1(2)(e), 14(b) (with art. 21)

C21 Reg. 46(4)(5)(6) modified (12.4.1994) by The Social Security Benefits Up-rating Order 1994 (S.I. 1994/542), arts. 1(2)(e), 14(b) (with art. 21)

C22 Reg. 46(4) modified (12.4.1994) by The Social Security Benefits Up-rating Order 1994 (S.I. 1994/542), arts. 1(2)(e), 14(a) (with art. 21)

C23 Reg. 46(4) sum confirmed (11.4.1995) by The Social Security Benefits Up-rating Order 1995 (S.I. 1995/559), arts. 1(2)(f), 16(a) (with art. 23)

C24 Reg. 46(4)(5)(6) sum confirmed (11.4.1995) by The Social Security Benefits Up-rating Order 1995 (S.I. 1995/559), arts. 1(2)(f), 16(b) (with art. 23)

C25 Reg. 46(4) modified (9.4.1996) by The Social Security Benefits Up-rating Order 1996 (S.I. 1996/599), arts. 1(2)(f), 16(b) (with reg. 23)

C26 Reg. 46(4)(5)(6) sum confirmed (8.4.1997) by The Social Security Benefits Up-rating Order 1997 (S.I. 1997/543), arts. 1(2)(f), 16(b) (with art. 26)

C27 Reg. 46(4) sum confirmed (8.4.1997) by The Social Security Benefits Up-rating Order 1997 (S.I. 1997/543), arts. 1(2)(f), 16(a) (with art. 26)

C28 Reg. 46(4) sum confirmed (7.4.1998) by The Social Security Benefits Up-rating Order 1998 (S.I. 1998/470), arts. 1(2)(f), 16(1)(a) (with art. 26)

C29 Reg. 46(4)(5)(6) sum confirmed (7.4.1998) by The Social Security Benefits Up-rating Order 1998 (S.I. 1998/470), arts. 1(2)(f), 16(1)(b) (with art. 26)

C30 Reg. 46(4) modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Order 2001 (S.I. 2001/1141), arts. 1(1), 3(a)(iii)

C31 Reg. 46(4)(5)(6) modified (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Order 2001 (S.I. 2001/1141), arts. 1(1), 3(a)(iv)

C32 Reg. 46(4) modified (with effect in accordance with art. 1(2) of the amending S.I.) by Tax Credits Up-rating Order 2002 (S.I. 2002/829), arts. 1(1), 3(a)(iii)

C33 Reg. 46(4)(5)(6) modified (with effect in accordance with art. 1(2) of the amending S.I.) by Tax Credits Up-rating Order 2002 (S.I. 2002/829), arts. 1(1), 3(a)(iv)

C34 Reg. 46(5)(6) sum amended (7.4.1992) by The Social Security Benefits Up-rating (No. 2) Order 1991 (S.I. 1991/2910), arts. 1(2)(e), 12(b)

[F397 Treatment of child care charges U.K.

46A.— (1) This regulation applies where a claimant is incurring [F398 or in the case of a claimant to whom paragraph (6A) applies, will incur] relevant [F399 childcare] charges and–

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

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

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

(2) In this regulation–

• [F400 “disabled child” means a child to whom paragraph (1A) of regulation 51 of the Disability Working Allowance Regulations applies; ]

• “local authority” means, in relation to England and Wales, the council of a county or district, a metropolitan district, a London Borough, the Common Council of the City of London or the Council of the Isles of Scilly or, in relation to Scotland, a regional, islands or district council;

• “relevant [F399 childcare] charges” means the charges paid by the claimant for care provided for any child of the claimant’s family who is [F401 in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Tuesday in September following that child’s [F402 fifteenth birthday or, if the child is a disabled child, sixteenth birthday]], other than charges paid in respect of the child’s compulsory education [F403 or charges paid by a claimant to a partner or by a partner to a claimant in respect of any child for whom either or any of them is responsible in accordance with regulation 7 (circumstances in which a person is to be treated as responsible or not responsible for another),] where the care is provided–

  (a)

  by persons registered under section 71 of the Children Act 1989 (registration of child minders and persons providing day care for young children);

  (b)

  for children [F404 in respect of the period beginning on their eighth birthday and ending on the day preceding the first Tuesday in September following their [F402 fifteenth birthday or, if the child is a disabled child, sixteenth birthday]], out of school hours, by a school on school premises or by a local authority; or

  (c)

  by a [F399 childcare] scheme operating on Crown property where registration under section 71 of the Children Act 1989 is not required, [F405 or

  (d)

  in schools or establishments which are exempted from registration under section 71 of the Children Act 1989 by virtue of section 71(16) of and paragraph 3 or 4 of Schedule 9 to that Act,] [F406 or

  (e)

  by a child care provider approved by an accredited organisation within the meaning given by regulation 4 of the Tax Credit (New Category of Child Care Provider) Regulations 1999,] [F407 or

  (f)

  by persons registered under Part XA of the Children Act 1989, or

  (g)

  by persons to whom section 79D of the Children Act 1989 (requirement to register) does not yet apply by virtue of paragraph 20 of the Care Standards Act 2000 (Commencement No. 7 (England) and Transitional, Transitory and Savings Provisions) Order 2001, or

  (h)

  in schools or establishments which are exempted from registration under Part XA of the Children Act 1989 by virtue of paragraph 1 or 2 of Schedule 9A to that Act,] [F408 or

  (i)

  by a person in circumstances where the care service provided by him consists of child minding or of day care of children within the meaning of section 2 of the Regulation of Care (Scotland) Act 2001 and is registered under Part 1 of that Act, or

  (ii)

  F409 ...

  (k)

  by a local authority in circumstances where the care service provided by the local authority consists of child minding or of day care of children within the meaning of section 2 of the Regulation of Care (Scotland) Act 2001 and is registered under Part 2 of that Act,] [F410 or

  (l)

  by a child care provider approved by an accredited organisation in accordance with regulation 4 of the Tax Credit (New Category of Child Care Provider) Regulations 2002,]

  and shall be calculated on a weekly basis in accordance with paragraphs (3) to (6) [F411 or, in the case of a claimant to whom paragraph (6A) applies, with paragraphs (6B) and (6C).];

• “school term-time” means the school term-time applicable to the child for whom care is provided.

[F412 (2ZA) A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of either—

(i) paragraph (5)(c) of regulation 4 (recognised, customary or other holiday) in circumstances where the absence from work arises from the need to care for a recently adopted child or young person or from the acquisition of a surrogate child, or

(ii) paragraph (5)(e) of that regulation (woman on maternity leave),

unless immediately prior to the adoption of the child or young person or the granting of the parental order for the surrogate child or the birth of the child (as the case may be) that person was paying, or had incurred, relevant childcare charges for another child or other children of her household.]

[F413 (2ZB) A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of paragraph (5)(f) of regulation 4 (man on paternity leave) unless, immediately prior to the birth of the child, that person was paying, or had incurred, relevant childcare charges for another child or other children of his household.]

[F414 (2A) In paragraph (2)—

(a) the age of a child referred to in that paragraph shall be determined by reference to the age of the child at the date on which the period under section 128(3) of the Contributions and Benefits Act (period of award) begins;

(b) “the first Tuesday in September” means the Tuesday which first occurs in the month of September in any year.]

[F415 (c) in the definition of “relevant [F399 childcare] charges” the words “charges paid” shall be taken to include charges which will be incurred and to which paragraph (6A) applies.]

[F416 (d) where paragraph (2ZA) applies, in the definition of “relevant childcare charges” the references to a child of the claimant’s family do not include references to any child born or child or young person adopted or surrogate child acquired during the period of absence or maternity leave.]

(3) Subject to paragraphs (4) to (6), relevant [F399 childcare] charges shall be calculated in accordance with the formula–

• (X + Y) / 52

where–

• X is the average weekly charge paid for [F399 childcare] in the most recent 4 complete weeks which fall in school term-time in respect of the child or children concerned, multiplied by 39; and

• Y is the average weekly charge paid for [F399 childcare] in the most recent 2 complete weeks which fall out of school term-time in respect of that child or those children, multiplied by 13.

(4) Subject to paragraph (5), where [F399 childcare] charges are being incurred in respect of a child who does not yet attend school, the relevant [F399 childcare] charges shall mean the average weekly charge paid for care provided in respect of that child in the most recent 4 complete weeks.

(5) Where in any case the charges in respect of [F399 childcare] are paid monthly, the average weekly charge for the purposes of paragraph (3) shall be established–

(a) where the charges are for a fixed monthly amount, by multiplying that amount by 12 and dividing the product by 52;

(b) where the charges are for variable monthly amounts, by aggregating the charges for the previous 12 months and dividing the total by 52.

(6) In a case where there is no information or insufficient information for establishing the average weekly charge paid for [F399 childcare] in accordance with paragraphs (3) to (5), the average weekly charge for care shall be estimated in accordance with information provided by the child minder or person providing the care or, if such information is not available, in accordance with information provided by the claimant.

[F417 (6A) Where a claimant–

(a) has entered into an agreement for the provision of [F399 childcare]; and

(b) will incur under that agreement relevant [F399 childcare] charges in respect of [F399 childcare] during the period of the [F418 working families' tax credit] award,

the weekly charge for [F399 childcare] shall be calculated in accordance with paragraphs (6B) and (6C), based upon a written estimate of the relevant future charges provided by the claimant and child minder or other [F399 childcare] provider.

(6B) Subject to paragraph (6C), relevant [F399 childcare] charges which fall under paragraph (6A) shall be calculated in accordance with the formula–

• • (X + Y) / 52

where–

X is the weekly estimate provided by the child minder or other [F399 childcare] provider for [F399 childcare] in those weeks which will fall in school term-time in respect of the child or children concerned, multiplied by 39; and

Y is the weekly estimate provided by the child minder or other [F399 childcare] provider for [F399 childcare] in those weeks which will fall out of school term-time in respect of the child or children concerned, multiplied by 13.

(6C) Where relevant [F399 childcare] charges fall under paragraph (6A) and they are in respect of a child who does not attend school, the relevant [F399 childcare] charges shall mean the weekly estimate provided by the child minder or other [F399 childcare] provider multiplied by the number of weeks during the period of the [F418 working families' tax credit] award in which relevant [F399 childcare] charges will be paid, divided by [F419 the number of weeks of the award] .]

(7) For the purposes of paragraph (1)(c) the other member of a couple is incapacitated where–

(a) either council tax benefit or housing benefit is payable under Part VII of the Contributions and Benefits Act to the other member or his partner and the applicable amount of the person entitled to the benefit includes–

(i) a disability premium; or

(ii) a higher pensioner premium by virtue of the satisfaction of–

(aa) in the case of council tax benefit, paragraph 11(2)(b) of Schedule 1 to the Council Tax Benefit (General) Regulations 1992;

(bb) in the case of housing benefit, paragraph 10(2)(b) of Schedule 2 to the Housing Benefit (General) Regulations 1987,

• on account of the other member’s incapacity [F420 or either regulation 13A(1)(c) of the Council Tax Benefit (General) Regulations 1992 (treatment of [F399 childcare] charges) or, as the case may be, regulation 21A(1)(c) of the Housing Benefit (General) Regulations 1987 (treatment of [F399 childcare] charges) applies in that person’s case;];

(b) there is payable in respect of him one or more of the following pensions or allowances–

(i) invalidity pension under section 33, 40 or 41 of the Contributions and Benefits Act;

(ii) attendance allowance under section 64 of that Act;

(iii) severe disablement allowance under section 68 of that Act;

(iv) disability living allowance under section 71 of that Act;

(v) increase of disablement pension under section 104 of that Act;

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

(c) a pension or allowance to which head (ii), (iv), (v) or (vi) of sub-paragraph (b) above refers, was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient within the meaning of regulation 8(3)(a) (membership of the same household);

(d) sub-paragraph (b) or (c) would apply to him if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or

(e) he has an invalid carriage or other vehicle provided to him by the Secretary of State under section 5(2)(a) of and Schedule 2 to the National Health Service Act 1977 or under section 46 of the National Health Service (Scotland) Act 1978 or provided by the Department of Health and Social Services for Northern Ireland under Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972.]

Textual Amendments

F397 Reg. 46A: reg. 13A renumbered as reg. 46A (5.10.1999 (with effect in accordance with reg. 1(2) of the amending S.I.)) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 6

F398 Words in reg. 46A(1) inserted (6.4.1999) by The Social Security Benefits (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/714), regs. 1(2)(b), 4(a)

F399 Word in reg. 46A substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 8(2)

F400 Words in reg. 46A(2) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 8(3)(a)

F401 Words in reg. 46A(2) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 4(2)(a)

F402 Words in reg. 46A(2) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 8(3)(b)

F403 Words in reg. 46A(2) inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 12(a)(i)

F404 Words in reg. 46A(2) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 4(2)(b)

F405 Reg. 46A(2)(d) and preceding word inserted (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 12(a)(ii)

F406 Words in reg. 46A(2) inserted (with effect in accordance with reg. 1(1) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 2000 (S.I. 2000/795), regs. 1(1), 5

F407 Words in reg. 46A(2) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments) Regulations 2002 (S.I. 2002/14), regs. 1(1), 3(2)

F408 Words in reg. 46A(2) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.2) Regulations 2002 (S.I. 2002/525), regs. 1(1), 3(2)

F409 Words in reg. 46A(2) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 11(2)(a)

F410 Words in reg. 46A(2) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 11(2)(b)

F411 Words in reg. 46A(2) added (6.4.1999) by The Social Security Benefits (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/714), regs. 1(2)(b), 4(b)

F412 Reg. 46A(2ZA) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 17(2)

F413 Reg. 46A(2ZB) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments) Regulations 2003 (S.I. 2003/44), regs. 1(1), 11(3)

F414 Reg. 46A(2A) substituted (7.4.1997) The Income-related Benefits and Jobseeker’s Allowance (Personal Allowances for Children and Young Persons) (Amendment) Regulations 1996 (S.I. 1996/2545), regs. 1(5), 4(3)

F415 Reg. 46A(2A)(c) added (6.4.1999) by The Social Security Benefits (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/714), regs. 1(2)(b), 4(c)

F416 Reg. 46A(2A)(d) added (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 17(3)

F417 Reg. 46A(6A)-(6C) inserted (6.4.1999) by The Social Security Benefits (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/714), regs. 1(2)(b), 4(d)

F418 Words in reg. 46A substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xv)

F419 Words in reg. 46A(6C) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 9(b)

F420 Words in reg. 46A(7)(a) added (11.4.1995) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/516), regs. 1(1)(b), 12(c)

[F421 Applicable amount U.K.

47.— (1) The applicable amount] for the purposes of section 20(5)(a) of the Act (conditions of entitlement to [F422 working families' tax credit]) shall be [F423 £94.50] per week.

[F424 (2) For the purposes of section 20(5A) of the Act (date on which applicable amount is to be determined) the prescribed date is the date on which the period under section 20(6) of the Act (period of the award) begins.]

Textual Amendments

F421 Words in reg. 47(1) substituted (5.10.1992) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No. 3) Regulations 1992 (S.I. 1992/2155), regs. 1(1), 11

F422 Words in reg. 47(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xvi)

F423 Word in reg. 47(1) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Tax Credits Up-rating Order 2002 (S.I. 2002/829), arts. 1(1), 3(b)

F424 Reg. 47(2) inserted (11.4.1988) by Family Credit (General) Amendment Regulations 1988 (S.I. 1988/660), reg. 1, 12

Entitlement to family credit where income exceeds the applicable amount U.K.

48.  The prescribed percentage for the purpose of section 21(3) of the Act (percentage of excess of income over applicable amount which is deducted from maximum [F425 working families' tax credit]) shall be [F426 55] per cent.

Textual Amendments

F425 Words in reg. 48 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xvii)

F426 Word in reg. 48 substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 10

PART VI U.K. CHANGES OF CIRCUMSTANCES

Death of claimant U.K.

49.—(1) Except as provided in paragraph (2), an award of [F427 working families' tax credit] shall cease to have effect upon the death of the claimant.

(2) Where a claimant dies and is survived by a partner who was the claimant's partner at the date of claim, an award of family credit made in the claimant's favour shall have effect for its unexpired period as if originally made in favour of the partner.

Textual Amendments

F427 Words in reg. 49 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xviii)

[F428 Surrendering an award following birth or adoption etc. of child U.K.

49ZA.— (1) An existing award of working families' tax credit shall cease to have effect if the claimant or partner elects, by notice to the Board, to surrender it following the birth of a child, the adoption of a child or young person or the granting of a parental order for a surrogate child.

(2) The award shall terminate with effect from—

(a) the day on which the notice is given to the Board, if that day is a Monday, or

(b) the Monday following the day on which the notice is given to the Board, if that day is other than a Monday.]

Textual Amendments

F428 Reg. 49ZA inserted (with effect in accordance with reg. 1(5) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 18

[F429 Young person leaving full-time education U.K.

49A.— (1) Subject to paragraph (3), where an award of [F430 working families' tax credit] is payable and the claimant or his partner are responsible, or are treated as being responsible for the purposes of regulation 7 (circumstances in which a person is to be treated as responsible or not responsible for another), for a young person and that young person—

(a) is, for the purpose of that award, a person of a prescribed description under section 128(1)(d) of the Contributions and Benefits Act; and

(b) ceases, or has ceased, to receive full-time education,

that cessation shall be a change of circumstances affecting the award, the award shall be [F431 superseded] and the award shall cease with effect from the date specified in paragraph (2).

(2) The date specified for the purposes of paragraph (1) shall be—

(a) 2nd July 1996 where the young person ceased to receive full-time education as from a date before that date; or

(b) the date upon which the young person attains the age of 16 or ceases to receive full-time education, whichever is the later.

(3) Paragraph (1) shall not apply where a young person referred to in that paragraph is a member of the same household as one or more children or, as the case may be, young persons who are receiving full-time education and for whom the claimant or his partner are responsible or are treated as responsible for the purposes of regulation 7.

(4) For the purposes of paragraphs (1) and (2), “young person” includes a young person who attains the age of 19—

(a) during the period between the date of claim and the date from which the claimant is awarded [F432 working families' tax credit]; or

(b) during the period an award of [F432 working families' tax credit] is payable.

(5)  In this regulation, “full-time education” means full-time education, either by attendance at a recognised educational establishment as defined in section 147(1) of the Contributions and Benefits Act or otherwise, if such education is recognised by the Secretary of State pursuant to section 142(2) of that Act, but is not a course of advanced education for the purposes of Chapter VII of Part IV (income and capital of students). ]

Textual Amendments

F429 Reg. 49A inserted (2.7.1996) by The Family Credit (General) Amendment Regulations 1996 (S.I. 1996/1418), regs. 1, 2

F430 Words in reg. 49A(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xix)

F431 Word in reg. 49A(1) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 27(3)

F432 Words in reg. 49A(4)(a)(b) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xix)

Prevention of duplication of awards of [F433 working families' tax credit] and income support U.K.

50.  Where provision is made for the same child or young person in awards for overlapping periods, the first being an award of [F433 working families' tax credit] and the second an award of [F434 [F433 working families' tax credit], income support [F435 , income-based jobseeker’s allowance] or [F436 disabled person’s tax credit]], and at the start of the period of overlap that child or young person is no longer a member of the household of the claimant under the first award, the first award shall terminate with effect from the start of the period of overlap.

Textual Amendments

F433 Words in reg. 50 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xx)

F434 Words in reg. 50 substituted (6.4.1992) by The Disability Living Allowance and Disability Working Allowance (Consequential Provisions) Regulations 1991 (S.I. 1991/2742), regs. 1(1), 13(4)

F435 Words in reg. 50 inserted (7.10.1996) by The Social Security and Child Support (Jobseeker’s Allowance) (Consequential Amendments) Regulations 1996 (S.I. 1996/1345), regs. 1, 8(4)

F436 Words in reg. 50 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(2), Sch. 2 para. 1(ii)

Overlapping awards U.K.

[F437 51.— (1) An award of [F438 working families' tax credit] (the new award) which is made in consequence of a claim in respect of a period beginning before the commencement of an existing award of [F438 working families' tax credit] (the existing award) and which overlaps with the period of the existing award, shall be treated as a relevant change of circumstances affecting the existing award and the existing award shall be [F439 superseded] and shall terminate with effect from the date on which the decision of the adjudication officer making the new award is notified to the claimant.

(2) An award of [F440 disabled person’s tax credit] which is made in consequence of a claim in respect of a period beginning [F441 on or] before the commencement of an existing award of [F438 working families' tax credit] (the existing award) and which overlaps with the period of the existing award, shall be treated as a change of circumstances affecting the existing award and the existing award shall be [F439 superseded] and shall terminate with effect from the date on which the decision of the adjudication officer awarding [F440 disabled person’s tax credit] is notified to the claimant.]

Textual Amendments

F437 Reg. 51 substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 19

F438 Words in reg. 51 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xxi)

F439 Word in reg. 51(1)(2) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 27(1), (2)(a)

F440 Words in reg. 51(2) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(2), Sch. 2 para. 1(iii)

F441 Words in reg. 51(2) inserted (8.10.1996) by The Income-related Benefits Schemes and Social Fund (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/1944), regs. 1(b), 4(3) (with reg. 13)

[F442 Reduced benefit direction] U.K.

F443 51A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F442 Reg. 51A inserted (13.4.1993) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1993 (S.I. 1993/315), regs. 1(1)(d), 14

F443 Reg. 51A omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 11

[F444 PART VII U.K. ENTITLEMENT TO FAMILY CREDIT AND DISABILITY WORKING ALLOWANCE

Textual Amendments

F444 Part VII inserted (7.4.1992) by The Disability Working Allowance (General) Regulations 1991 (S.I. 1991/2887), regs. 1, 58(2)

Prescribed circumstances for entitlement to [F445 working families' tax credit] U.K.

52.   For the purposes of section 20(5)(bb) of the Act (prescribed circumstances) where a claimant or a member of his family is entitled to [F446 disabled person’s tax credit], he is entitled to [F445 working families' tax credit], if—

(a) at the date of the claim for [F445 working families' tax credit] the award of [F446 disabled person’s tax credit] for him or a member of his family will expire within 42 days; and

(b) the claimant is or would be otherwise entitled to [F445 working families' tax credit] by virtue of these Regulations; and

(c) the claim for [F445 working families' tax credit] is made in respect of a period which commences immediately after the expiry of the award of [F446 disabled person’s tax credit].]

Textual Amendments

F445 Words in reg. 52 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(xxii)

F446 Words in reg. 52 substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(2), Sch. 2 para. 1(iv)

Signed by authority of the Secretary of State for Social Services.

Nicholas Scott

Minister of State,

Department of Health and Social Security