These Regulations modify the list of provisions contained in section 10(7)(a) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7). Section 10 was substituted by section 78(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19) (“the 2000 Act”). Subsection (8) of the substituted section 10 permits the Treasury to add other provisions to the list in section 10(7)(a).

Regulation 1 provides for the citation, commencement and effect of the Regulations. In exercise of the power conferred by section 78(9) of the 2000 Act, these Regulations have effect in relation to any time in the tax year in which they are made. Accordingly they apply to any time in the tax year beginning on 6th April 2000 (including any time before the 2000 Act was passed) and to subsequent tax years.

Regulation 2 modifies section 10(7)(a) by inserting references to sections 193(4), 194(1) and 195(7) of the Income and Corporation Taxes Act 1988 (c. 1) and also a reference to 50(2) of the Finance Act 1989 (c. 26).

The effect of the modifications made by the Regulations is to provide for a deduction from the total amount of an employee’s emoluments in respect of which Class 1A contributions are payable if the employee is entitled to a corresponding deduction at least equal to the whole amount which would otherwise be brought into charge to Class 1A contributions.