SCHEDULE 5FINANCIAL ASSESSMENT

Definitions

1.

(1)

In this Schedule—

(a)

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

(b)

“household income” (“incwm aelwyd”,“incwm yr aelwyd”, “incwm sydd gan yr aelwyd”) has the meaning given in paragraph 3;

(c)

“independent eligible student” (“myfyriwr cymwys annibynnol”) has the meaning given in paragraph 2;

(d)

“Member State” (“Aelod-wladwriaeth”) means a Member State of the European Union;

(e)

“new eligible student” (“myfyriwr cymwys newydd”) means an eligible student who begins a designated course on or after 1 September 2004;

(f)

“parent” (“rhiant”) means a natural or adoptive parent and “child” (“plentyn”) is construed accordingly;

(g)

“parent student” (“myfyriwr sy’n rhiant”) means an eligible student who is the parent of an eligible student;

(h)

“partner” (“partner”) in relation to an eligible student means any of the following—

(i)

the spouse of an eligible student;

(ii)

the civil partner of an eligible student;

(iii)

a person ordinarily living with an eligible student as if the person were the eligible student’s spouse where an eligible student falls within paragraph 2(1)(a) and the eligible student begins the designated course on or after 1 September 2000;

(iv)

a person ordinarily living with an eligible student as if the person were the eligible student’s civil partner where an eligible student falls within paragraph 2(1)(a) and the eligible student begins the designated course on or after 1 September 2005;

(i)

“partner” (“partner”) in relation to the parent of an eligible student means any of the following other than another parent of the eligible student—

(i)

the spouse of an eligible student’s parent;

(ii)

the civil partner of an eligible student’s parent;

(iii)

a person ordinarily living with the parent of an eligible student as if the person were the parent’s spouse;

(iv)

a person ordinarily living with the parent of an eligible student as if the person were the parent’s civil partner;

(j)

“preceding financial year” (“blwyddyn ariannol flaenorol”) means the financial year immediately preceding the relevant year;

(k)

“prior financial year” (“blwyddyn ariannol gynharach”) means the financial year immediately preceding the preceding financial year;

(l)

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

(m)

“residual income” (“incwm gweddilliol”) means taxable income after the application of paragraph 4 (in the case of an eligible student), paragraph 5 (in the case of an eligible student’s parent), paragraph 6 (in the case of an eligible student’s partner) or paragraph 7 (in the case of the partner of a new eligible student’s parent) and income referred to in sub-paragraph (2) received net of income tax; and

(n)

“taxable income” (“incwm trethadwy”) means, in relation to paragraph 4, in respect of the academic year for which an application has been made under regulation 9 and, in relation to paragraph 5, in respect (subject to sub-paragraphs (3) to (6) of paragraph 5) of the prior financial year—

(i)

the total income on which a person is charged to income tax as determined at Step 1 of the calculation in section 23 of the Income Tax Act 200797, together with any payments and other benefits mentioned in section 401(1) of the Income Tax (Earnings and Pensions) Act 200398 (ignoring section 401(2) of that Act), received or treated as received by a person, to the extent that they are not a component of the total income on which a person is charged to income tax;

(ii)

a person’s total income from all sources as determined for the purposes of the income tax legislation of another Member State which applies to the person’s income; or

(iii)

where the legislation of more than one Member State applies to the period, a person’s total income from all sources as determined for the purposes of the income tax legislation under which the Welsh Ministers consider that the person’s total income in that period is greatest (except as otherwise provided in paragraph 5),

except that no account is taken of income referred to in sub-paragraph (2) paid to another party.

(2)

The income referred in this sub-paragraph is any benefits under a pension arrangement pursuant to an order made under section 23 of the Matrimonial Causes Act 197399 which includes provision made by virtue of sections 25B(4) and 25E(3) of that Act100 or pension benefits under Part 1 of Schedule 5 to the Civil Partnership Act 2004101 which includes provision made by virtue of Parts 6 and 7 of that Schedule.