xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"

Regulation 28

SCHEDULE 2E+WSTUDENT'S CONTRIBUTION

PART 1 E+WInterpretation

1.—(1) In this Schedule—E+W

“EEA State” has the meaning given by paragraph 1 of Part 1 of Schedule 1;

“financial year” means the period of twelve months in respect of which the income of a person whose residual income is calculated under the provisions of Part 2 of this Schedule is computed for the purposes of the income tax legislation which applies to it;

“household income” has the meaning given in paragraph 2;

“Member State” has the meaning given by paragraph 1 of Part 1 of Schedule 1;

“partner” in relation to a student means any of the following—

(i)

the spouse of the student;

(ii)

the civil partner of the student;

(iii)

a person ordinarily living with the student (“A”) as if that person were A's spouse where A was aged 25 or over at the start of the academic year in respect of which A's contribution falls to be assessed;

(iv)

a person ordinarily living with the student (“A”) as if that person were A's civil partner where A was aged 25 or over at the start of the academic year in respect of which A's contribution falls to be assessed;

“preceding financial year” means the financial year immediately preceding the relevant year;

“relevant year” means the academic year in respect of which the household income falls to be assessed;

“residual income” means taxable income after the application of paragraph 3 (in the case of a student) and paragraph 4 (in the case of a student's partner) and income referred to in sub-paragraph (2) received net of income tax;

“taxable income” means, in relation to paragraph 3, in respect of the academic year for which support is sought and, in relation to paragraph 4, in respect (subject to sub-paragraphs (3) and (4) of paragraph 4) of the preceding financial year, a person's taxable income from all sources computed as for the purposes of—

(a)

the Income Tax Acts;

(b)

the income tax legislation of [F1an EEA State] or Switzerland which applies to a person's income;

(c)

[F2where the legislation of—

(i)

the United Kingdom and one or more EEA States;

(ii)

more than one EEA State;

(iii)

the United Kingdom and Switzerland;

(iv)

one or more EEA States and Switzerland; or

(v)

the United Kingdom, Switzerland and one or more EEA States

applies to the period, the legislation under which the Secretary of State considers the person will pay the largest amount of tax in that period.]

(2) The income referred to in this sub-paragraph is any benefits under a pension arrangement pursuant to an order made under section 23 of the Matrimonial Causes Act 1973 M1 which includes provision made by virtue of sections 25B(4) and 25E(2) of that Act or pension benefits under Part 1 of Schedule 5 to the Civil Partnerships Act 2004 M2 which includes provision made by virtue of Parts 6 and 7 of that Schedule.

Textual Amendments

Marginal Citations

M22004 c.33; paragraph 25 of Schedule 5 was modified by S.I. 2006/1934.

PART 2 E+WCalculation of contribution

Household incomeE+W

2.—(1) The amount of a student's contribution depends on the household income.

(2) The household income is—

(a)in the case of a student who has a partner, the residual income of the student aggregated with the residual income of that student's partner; or

(b)in the case of a student who does not have a partner, the residual income of that student.

(3) In determining the household income, an amount of £1,130 shall be deducted in the case of a student for each child wholly or mainly dependant on the student or the student's partner.

Calculation of the student's residual incomeE+W

3.—(1) For the purpose of determining the residual income of a student (“A”), there shall be deducted from A's taxable income (unless already deducted in determining taxable income) the aggregate of any amounts falling within any of the following sub-paragraphs—

(a)any remuneration for work done during any academic year of A's course, provided that such remuneration shall not include any sums paid in respect of any period for which A has leave of absence or is relieved of A's normal duties for the purpose of attending that course;

(b)the gross amount of any premium or other sum paid by A in relation to a pension (not being a pension payable under a policy of life assurance) in respect of which relief is given under section 273, 619 or 639 of the Income and Corporation Taxes Act 1988 M3 or under section 188 of the Finance Act 2004 M4, or where A's income is computed for the purpose of the income tax legislation of [F3a Member State], the gross amount of any such premium or sum in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts.

(2) Where the student receives income in a currency other than sterling, the value of that income for the purpose of this paragraph shall be—

(a)if the student purchases sterling with the income, the amount of sterling the student so receives; or

(b)otherwise, the value of the sterling the income would purchase using the rate for the month in which it is received published by the Office for National Statistics M5.

Textual Amendments

Marginal Citations

M5“Financial Statistics” (ISSN 0015-203X).

Calculation of the student's partner's residual incomeE+W

4.—(1) Subject to sub-paragraphs (7), (8) and (9), for the purposes of determining the taxable income of a student's partner, any deductions which fall to be made or exemptions which are permitted—

(a)by way of personal reliefs provided for in Chapter 1 of Part VII of the Income and Corporation Taxes Act 1988, or where the income is computed for the purposes of the income tax legislation of [F4an EEA State] or Switzerland, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

(b)pursuant to any enactment or rule of law under which payments which would otherwise under United Kingdom law form part of a person's income are not treated as such; or

(c)under sub-paragraph (2),

shall not be made or permitted.

(2) For the purpose of determining the residual income of a student's partner, there shall be deducted from the taxable income determined under sub-paragraph (1) the aggregated of any amounts falling within any of the following sub-paragraphs—

(a)the gross amount of any premium or other sum relating to a pension (not being a pension payable under a policy of life assurance) in respect of which relief is given under section 273, 619 or 639 of the Income and Corporation Taxes Act 1988 or under section 188 of the Finance Act 2004, or where the income is computed for the purpose of the income tax legislation of [F5an EEA State] or Switzerland, the gross amount of any such premium or sum in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

(b)in any case where income is computed in accordance with sub-paragraph (5) any sums equivalent to the deduction mentioned in paragraph (a), provided that any sums so deducted shall not exceed the deductions which would be made if the whole of the student's partner's income were in fact income for the purposes of the Income Tax Acts; and

(c)in the case of a student's partner who holds a statutory award, £1,130.

(3) Where the Secretary of State is satisfied that the residual income of the student's partner in the financial year beginning immediately before the relevant year (“current financial year”) is likely to be not more than 85 per cent. of the sterling value of the student's partner's residual income in the preceding financial year the Secretary of State may, for the purpose of enabling the student to attend the course without hardship, ascertain the student's partner's residual income for the current financial year.

(4) Where the student's partner (“A”) satisfies the Secretary of State that A's income is wholly or mainly derived from the profits of a business or profession carried on by A, then any reference in this Part to a preceding financial year shall mean the earliest period of twelve months which ends after the start of the preceding financial year and in respect of which accounts are kept relating to that business or profession.

(5) Where a student's partner (“A”) is in receipt of any income which does not form part of A's income for the purposes of the Income Tax Acts or the income tax legislation of [F6an EEA State] or Switzerland by reason only that—

(a)A is not resident F7... or domiciled in the United Kingdom, or where A's income is computed as for the purposes of the income tax legislation of [F6an EEA State] or Switzerland, not so resident F7...or domiciled in that EEA State or Switzerland;

(b)the income does not arise in the United Kingdom, or where A's income is computed for the purposes of the income tax legislation of [F6an EEA State] or Switzerland, does not arise in that EEA State or Switzerland; or

(c)the income arises form an office, service or employment, income from which is exempt from tax in pursuance of any legislation,

A's taxable income for the purpose of this Schedule shall be computed as though the income under this sub-paragraph were part of A's income for the purpose of the Income Tax Acts or the income tax legislation of [F6an EEA State] or Switzerland, as the case may be.

(6) Where the income of the student's partner is computed as for the purposes of the income tax legislation of [F8an EEA State] or Switzerland, it shall be computed under the provision of this Schedule in the currency of that EEA State or Switzerland and the income of the student's partner for the purposes of this Schedule shall be the sterling value of that income determined in accordance with the rate for the month in which the last day of the financial year in question falls, as published by the Office for National Statistics.

(7) Where the Secretary of State determines that the student and the student's partner are separated for the duration of the relevant year, the partner's income is not taken into account in determining the household income.

(8) Where the Secretary of State determines that the student and the student's partner have separated in the course of the relevant year, the partner's income is determined by reference to that person's income under sub-paragraph (1) divided by fifty-two and multiplied by the number of complete weeks in the relevant year for which the Secretary of State determines that the student and the student's partner are not separated.

(9) Where a student has more than one partner in any one academic year, the provisions of this paragraph apply in relation to each.

Textual Amendments

Calculation of contributionE+W

5.—(1) A student's contribution shall be calculated in accordance with this regulation.

(2) In relation to a student who has a partner, the contribution shall—

(a)where the household income is £23,660 or more, be £45 with the addition of £1 for every complete £9.27 by which the household income exceeds £23,660; and

(b)in any case where the household income is less than £23,600, be nil.

(3) In relation to a student who does not have a partner, the contribution shall—

(a)where the household income is £11,020 or more, be £45 with the addition of £1 for every complete £9.27 by which the household income exceeds £11,020; and

(b)where the household income is less than £11,020, be nil.

(4) The amount of contribution shall not exceed £7,998 where the contribution is calculated under sub-paragraph (2) or (3).