PART 10INCOME AND CAPITAL

CHAPTER 5Participants in the self-employment route

Deduction in respect of tax for participants in the self-employment route103

1

The amount to be deducted in respect of income tax under regulation 102(1)(a) (calculation of income of participants in the self-employment route) in respect of the period determined under regulation 102(2) is to be calculated as if—

a

the chargeable income is the only income chargeable to tax;

F3b

the personal reliefs applicable to the person receiving assistance under the self-employment route under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 are allowable against that income;

c

the rate at which the chargeable income less the F5personal reliefs is assessable to income tax is the F1... basic rateF4, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax.

2

For the purpose of paragraph (1), the F2basic rate, or the Scottish basic rate, of tax to be applied and the amount of personal reliefs deductible are, where the period determined under regulation 102(2) is less than a year, to be calculated on a pro rata basis.

3

In this regulation, “chargeable income” means the monies in the special account at the end of the last day upon which assistance was received under the self-employment route.