The State Pension Credit Regulations 2002

[F1 Earnings of self-employed earners

17B.— (1) For the purposes of state pension credit, the provisions of the Computation of Earnings Regulations in their application to the earnings of self-employed earners, shall have effect in so far as provided by this regulation.

(2) In their application to state pension credit, regulations 11 to 14 of the Computation of Earnings Regulations shall have effect as if—

[F2 (za) “board and lodging accommodation” has the same meaning as in [F3 regulation 1(2)];]

(a) “claimant” referred to a person claiming state pension credit and any partner of the claimant;

(b) “personal pension scheme” referred to a personal pension scheme—

(i) as defined in section 1 of the Pension Schemes Act 1993; or

(ii) as defined in section 1 of the Pension Schemes (Northern Ireland) Act 1993.

(3) In regulation 11 (calculation of earnings of self-employed earners), paragraph (1) shall have effect, but as if the words “Except where paragraph (2) applies” were omitted.

(4) In regulation 12 (earnings of self-employed earners)—

(a) paragraph (1) shall have effect;

(b) for paragraph (2), the following provision shall have effect—

“(2) Earnings does not include—

(a) where a claimant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation for which payment is made, those payments;

(b) any payment made by a local authority to a claimant—

(i) with whom a person is accommodated by virtue of arrangements made under section 23(2)(a) of the Children Act 1989 (provision of accommodation and maintenance for a child whom they are looking after ) or, as the case may be, section 26(1) of the Children (Scotland) Act 1995; or

(ii) with whom a local authority foster a child under the Fostering of Children (Scotland) Regulations 1996;

(c) any payment made by a voluntary organisation in accordance with section 59(1)(a) of the Children Act 1989 (provision of accommodation by voluntary organisations);

(d) any payment made to the claimant or his partner for a person (“the person concerned”) who is not normally a member of the claimant’s household but is temporarily in his care, by—

(i) a health authority;

(ii) a local authority;

(iii) a voluntary organisation;

(iv) the person concerned pursuant to section 26(3A) of the National Assistance Act 1948; or

(v) a primary care trust established under section 16A of the National Health Service Act 1977;

(e) any sports award.”.

(5) In regulation 13 (calculation of net profit of self-employed earners)—

(a) for paragraphs (1) to (3), the following provision shall have effect—

“(1) For the purposes of regulation 11 (calculation of 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, his share of the net profit derived from that employment less—

(i) an amount in respect of income tax and of social security contributions payable under the Contributions and Benefits Act calculated in accordance with regulation 14 (deduction of tax and contributions for self-employed earners); and

(ii) one half of any premium paid in the period that is relevant under regulation 11 in respect of a retirement annuity contract or a personal pension scheme.”

(b) paragraphs (4) to (12) shall have effect.

(6) Regulation 14 (deduction of tax and contributions for self-employed earners) shall have effect.]

Textual Amendments

F1 Reg. 17A - Reg. 17B inserted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019), regs. 1(2)(b), 23(i)

F2 Reg. 17B(2)(za) inserted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), regs. 1(1)(b), 3(2)(a)

F3 Words in reg. 17B(2)(za) substituted (3.10.2005) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2005 (S.I. 2005/2465), regs. 1(2), 6(4)