2.—(1) In this Part of this Schedule–
“child” includes a person adopted in pursuance of adoption proceedings and a step-child but, except in paragraph 4, does not include a child who holds a statutory award; and, except as otherwise provided by paragraph 5, “parent” shall be construed accordingly;
“gross income” has the meaning assigned to it by paragraph 5;
“income of the student’s parent” means the total income of the parent from all sources computed as for income tax purposes, except as otherwise provided by paragraph 5 or 6;
“residual income” means, subject to sub-paragraph (2), the balance of gross income remaining in any year after the deductions specified in paragraph 6 have been made;
“total income” has the same meaning as in section 32 of the Finance Act 1971(1); and
references to any provision of any of the Tax Acts passed before the Income and Corporation Taxes Act 1988(2) shall, in respect of a financial year ending after 5th April 1988, be construed as a reference to the corresponding provision of that Act, in so far as that Act is applicable.
(2) Where, in a case not falling within paragraph 5(3) or (4), the authority are satisfied that the income of the parent in any financial year is as a result of some event beyond his control likely to be, and to continue after that year to be, not more than 85 per cent of his income in the financial year preceding that year, they may, for the purpose of enabling the student to attend the course without hardship, ascertain the parental contribution for the year of his course in which that event occurred by taking as the residual income the average of the residual income for each of the financial years in which that year falls.
(3) Where the student’s parent satisfies the authority that his income is wholly or mainly derived from the profits of a business or profession carried on by him, then, if the authority and the parent so agree, any reference in this Part of this Schedule to a financial year shall be construed as a reference to a year ending with such date as appears to the authority expedient having regard to the accounts kept in respect of that business or profession and the periods covered thereby.
(4) Where a parent is in receipt of any income which does not form part of his total income by reason only that–
(a)he is not resident, ordinarily resident or domiciled in the United Kingdom,
(b)the income does not arise in the United Kingdom, or
(c)the income arises from an office, service or employment, income from which is exempt from tax in pursuance of any enactment,
his income for the purposes of this Part of this Schedule shall be computed as though the income first mentioned in this sub-paragraph were part of his total income.