Statutory Instruments

2001 No. 2539

SOCIAL SECURITY

TAXES

The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001

Made

16th July 2001

Laid before Parliament

16th July 2001

Coming into Force

7th August 2001

The Treasury, in exercise of the powers conferred upon them by sections 128(5), 129(8), 136(3) and (5)(a) and (b), 137(1) and 175(1) and (3) of the Social Security Contributions and Benefits Act 1992(1), and section 2(1)(a) and (4) of, and paragraphs 1(c), (d) and (g) and 20(a) of Schedule 2 to, the Tax Credits Act 1999(2), hereby make the following Regulations:

Citation, commencement and effect

1.—(1) These Regulations may be cited as the The Tax Credits (Miscellaneous Amendments No. 7) Regulations 2001 and shall come into force on 7th August 2001.

(2) These Regulations shall have effect in relation to award periods commencing on or after 7th August 2001.

Interpretation

2. In these Regulations—

“award periods” means award periods of disabled person’s tax credit or, as the case may be, working families' tax credit;

“the Disability Working Allowance Regulations” means the Disability Working Allowance (General) Regulations 1991(3);

“the Family Credit Regulations” means the Family Credit (General) Regulations 1987(4).

Amendments to the Family Credit Regulations and the Disability Working Allowance Regulations

3. Amend Chapter VII of Part IV of the Family Credit Regulations and Chapter VII of Part V of the Disability Working Allowance Regulations (students) in accordance with regulations 4 to 9.

4. In the definition of “contribution” in regulation 37 of the Family Credit Regulations and regulation 41 of the Disability Working Allowance Regulations(5)—

(a)for the words “a Minister of the Crown” substitute “the Secretary of State, the Scottish Ministers”;

(b)for the words “the Secretary of State or education authority takes” substitute “the Scottish Ministers or education authority take”;

(c)for the words “the Secretary of State or the education authority consider” substitute “the Scottish Ministers or the education authority consider”.

5. In the definition of “grant” in regulation 37 of the Family Credit Regulations and regulation 41 of the Disability Working Allowance Regulations(6) after the words “Secretary of State” insert “or the Scottish Ministers”.

6.—(1) In each of the provisions listed in paragraph (2) for “£255” substitute “£260”.

(2) The provisions are—

(a)regulations 38 (2A)(a) and 42A(5)(a) of the Family Credit Regulations(7);

(b)regulations 42(2A)(a) and 47(5)(a) of the Disability Working Allowance Regulations(8).

7.—(1) In each of the provisions listed in paragraph (2) for “£311” substitute “£319”.

(2) The provisions are—

(a)regulations 38 (2A)(b) and 42A(5)(b) of the Family Credit Regulations;

(b)regulations 42(2A)(b) and 47(5)(b) of the Disability Working Allowance Regulations.

8. In regulation 38(2) of the Family Credit Regulations after sub-paragraph (h)(9) add—

“(j)that is made in respect of childcare costs pursuant to—

(i)sections 5, 6 and 9 of the Learning and Skills Act 2000(10);

(ii)section 4 of the Further Education and Higher Education (Scotland) Act 1992(11);

(iii)Article 5 of the Further Education (Northern Ireland) Order 1997(12);

(iv)the Education (Student Support) Regulations 2001(13);

(v)the Students' Allowances (Scotland) Regulations 1999(14); or

(vi)the Education (Student Support) Regulations (Northern Ireland) 2001(15);

provided that the claimant’s award does not include an amount of childcare tax credit under regulation 46(1)(ab)(16).”

9. In regulation 42(2) of the Disability Working Allowance Regulations after sub-paragraph (g)(17) add—

“(h)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 51(1)(aa)(18).”.

Tony McNulty

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

16th July 2001

Explanatory Note

(This note is not part of the Regulations)

These Regulations make various amendments, with effect from 7th August 2001, to the provisions relating to students in the Family Credit (General) Regulations 1987 (S.I. 1987/1973) (“the Family Credit Regulations”) and the Disability Working Allowance (General) Regulations 1991 (S.I. 1991/2887) (“the Disability Working Allowance Regulations”).

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulation 3 introduces the amendments made by regulations 4 to 9.

Regulations 4 and 5 amend the definitions of “contribution” and “grant” in regulation 37 of the Family Credit Regulations and regulation 41 of the Disability Working Allowance Regulations.

Regulations 6 and 7 amend regulations 38 and 42A of the Family Credit Regulations, and regulations 42 and 47 of the Disability Working Allowance Regulations, so as to increase in line with the overall increase in basic student support the allowances given for course-related books and equipment and travelling expenses in calculating the amount of a student’s income for the purposes of computing working families' tax credit or disabled person’s tax credit.

Regulations 8 and 9 make further amendments to regulation 38 of the Family Credit Regulations, and regulation 42 of the Disability Working Allowance Regulations, so as to exclude from the calculation of the amount of a claimant’s income grants made to students in respect of childcare costs provided the claimant’s award does not include an amount of childcare tax credit.

(1)

1992 c. 4. Sections 128(5) and 129(8) were amended by paragraphs 1(a) and (b) and (2)(g) and (h) of Schedule 1 to the Tax Credits Act 1999 (c. 10). Section 137(1) is cited because of the meaning it ascribes to the word “prescribed”. The functions of the Secretary of State in respect of working families' tax credit and disabled person’s tax credit which are exercised in the making of these Regulations were transferred to the Treasury by section 2(1)(a) and (4) of, and paragraphs 1(c), (d) and (g) and 20(a) of Schedule 2 to, the Tax Credits Act 1999.

(2)

1999 c. 10.

(3)

S.I. 1991/2887.

(4)

S.I. 1987/1973.

(5)

The definition was amended by regulation 4 of S.I. 1998/563 and regulation 7 of S.I. 1999/1935.

(6)

The definition was amended by regulation 3(3) of S.I. 1990/1549.

(7)

Regulation 38 was amended by regulation 10 of S.I. 1988/660, regulation 10(a) of S.I. 1992/573, regulation 6(3)(a) and (b) of S.I. 1999/1953 and regulation 5 of S.I. 2000/1807. Regulation 42A was inserted by regulation 3(5) of S.I. 1990/1549 and amended by regulation 6(5) of S.I. 1999/1935 and regulation 7 of S.I. 2000/1807.

(8)

Regulation 42 was amended by regulation 7(3)(a) and (b) of S.I. 1999/1935 and regulation 13 of S.I. 2000/1807. Regulation 47 was amended by regulation 7(5) of S.I. 1999/1935 and regulation 15 of S.I. 2000/1807.

(9)

Sub-paragraph (h) of regulation 38(2) was added by regulation 5(b) of S.I. 2000/1807.

(10)

2000 c. 21.

(11)

1992 c. 37.

(12)

S.I. 1997/1772 (N.I. 15).

(13)

S.I. 2001/951.

(14)

S.I. 1999/1131 (S. 91).