PART 8SOCIAL SECURITY BENEFITS
CHAPTER 3INCAPACITY BENEFIT
Determination of claimant’s code by Inland Revenue179
1
On receiving a return under regulation 176 relating to a single-income claimant, the Inland Revenue must determine the code for the claimant.
2
The Inland Revenue may determine the code for a claimant who is not a single-income claimant if they consider that it would be impractical to collect tax arising on the claimant’s taxable incapacity benefit by other means.
3
In determining the code for a claimant under this regulation, regulation 14(1) (matters to which Revenue must have regard in determining an employee’s code) does not apply.
4
If the Inland Revenue are satisfied the claimant is entitled, for the tax year for which the code is determined, to any of the following reliefs from income tax, they must have regard to that relief in determining the code for the claimant under this regulation.
5
The reliefs are—
a
personal allowance (section 257(1) of ICTA73),
b
married couple’s allowance (section 257A of ICTA74), and
c
blind person’s allowance (section 265(1) of ICTA75).
6
If the Inland Revenue determine the code for a claimant before the beginning of the tax year for which it is determined, the Inland Revenue—
a
must have regard to any expected change in the amounts of those reliefs, but
b
may disregard any of those reliefs if they are not satisfied that the claimant will be entitled to it for the tax year for which it is determined.