|
| |
|
661 Taxable social security income | |
(1) This section applies in relation to each of the following taxable benefits listed | |
in Table A— | |
bereavement allowance, | |
carer’s allowance, | 5 |
incapacity benefit, and | |
income support. | |
(2) The amount of taxable social security income for a taxable benefit for a tax year | |
is the full amount of the benefit accruing in the tax year irrespective of when | |
any amount is actually paid. | 10 |
662 Person liable for tax | |
The person liable for any tax charged under this Part on a taxable benefit listed | |
in Table A is the person receiving or entitled to the benefit. | |
Chapter 4 | |
Taxable UK social security benefits: exemptions | 15 |
Incapacity benefit | |
663 Long-term incapacity benefit: previous entitlement to invalidity benefit | |
(1) No liability to income tax arises on long-term incapacity benefit if— | |
(a) a person is entitled to the benefit for a day of incapacity for work which | |
falls in a period of incapacity for work which is treated for the purposes | 20 |
of that benefit as having begun before 13th April 1995, and | |
(b) the part of that period which is treated as having fallen before that date | |
includes a day for which that person was entitled to invalidity benefit. | |
(2) In this section— | |
“invalidity benefit” means invalidity benefit under— | 25 |
(a) Part 2 of SSCBA 1992, or | |
(b) Part 2 of SSCB(NI)A 1992; | |
“long-term incapacity benefit” means incapacity benefit payable under— | |
(a) section 30A(5), 40 or 41 of SSCBA 1992, or | |
(b) section 30A(5), 40 or 41 of SSCB(NI)A 1992. | 30 |
664 Short-term incapacity benefit not payable at the higher rate | |
(1) No liability to income tax arises on short-term incapacity benefit unless it is | |
payable at the higher rate. | |
(2) In this section— | |
(a) “short-term incapacity benefit” means incapacity benefit payable | 35 |
under— | |
(i) section 30A(1) of SSCBA 1992, or | |
(ii) section 30A(1) of SSCB(NI)A 1992; | |
|
| |
|
| |
|
(b) the reference to short-term incapacity benefit payable at the higher rate | |
is to be construed in accordance with— | |
(i) section 30B of SSCBA 1992, or | |
(ii) section 30B of SSCB(NI)A 1992. | |
Income support | 5 |
665 Exempt unless payable to member of couple involved in trade dispute | |
(1) No liability to income tax arises on income support unless— | |
(a) the income support is payable to one member of a married or | |
unmarried couple (“the claimant”), and | |
(b) section 126 of SSCBA 1992 or section 125 of SSCB(NI)A 1992 (trade | 10 |
disputes) applies to the claimant but not to the other member of the | |
couple. | |
(2) In this section “married couple” and “unmarried couple” have the same | |
meaning as in section 137(1) of SSCBA 1992 or section 133(1) of SSCB(NI)A | |
1992. | 15 |
666 Child maintenance bonus | |
No liability to income tax arises on a part of income support which is | |
attributable to a child maintenance bonus (within the meaning of section 10 of | |
CSA 1995 or Article 4 of CS(NI)O 1995). | |
667 Amounts in excess of taxable maximum | 20 |
(1) If the amount of income support paid to a person (“the claimant”) for a week | |
or a part of week exceeds the claimant’s taxable maximum for that period, no | |
liability to income tax arises on the excess. | |
(2) The claimant’s taxable maximum for a period is determined under section 668. | |
668 Taxable maximum | 25 |
(1) A claimant’s taxable maximum for a week is determined under this subsection | |
if the applicable amount for the purpose of calculating the income support | |
consists only of an amount in respect of the relevant couple. | |
The taxable maximum is equal to one half of the applicable amount. | |
(2) A claimant’s taxable maximum for a week is determined under this subsection | 30 |
if the applicable amount includes amounts that are not in respect of the | |
relevant couple. | |
The taxable maximum is equal to one half of the amount which is included in | |
the applicable amount in respect of the relevant couple. | |
(3) A claimant’s taxable maximum for a part of a week is determined as follows— | 35 |
Step 1 | |
Assume that the income support is paid to the claimant for the whole of, rather | |
than part of, the week. | |
|
| |
|
| |
|
Step 2 | |
Determine under subsection (1) or (2) what the claimant’s taxable maximum | |
for that week would be on that assumption. | |
Step 3 | |
Determine the claimant’s taxable maximum for the part of the week using this | 5 |
formula—![equation: times[cross[over[char[N],num[7.00000000,"7"]],char[T]],char[M],char[W]]](missing.gif) | |
where— | |
N is the number of days in the part of the week for which the claimant is | |
actually paid the income support, and | |
TMW is the taxable maximum for the whole week determined under step | 10 |
2. | |
669 Interpretation | |
(1) In sections 667 and 668, except in relation to Northern Ireland— | |
“applicable amount” means the amount prescribed in relation to income | |
support in regulations made under section 135 of SSCBA 1992; | 15 |
“married couple” and “unmarried couple” have the same meaning as in | |
section 137(1) of SSCBA 1992. | |
(2) In sections 667 and 668, in relation to Northern Ireland— | |
“applicable amount” means the amount prescribed in relation to income | |
support in regulations made under section 131 of SSCB(NI)A 1992; | 20 |
“married couple” and “unmarried couple” have the same meaning as in | |
section 133(1) of SSCB(NI)A 1992. | |
(3) In section 668 “relevant couple”, in relation to a claimant, means the married or | |
unmarried couple of which the claimant is a member. | |
Jobseeker’s allowance | 25 |
670 Child maintenance bonus | |
No liability to income tax arises on a part of a jobseeker’s allowance which is | |
attributable to a child maintenance bonus (within the meaning of section 10 of | |
CSA 1995 or Article 4 of CS(NI)O 1995). | |
671 Amounts in excess of taxable maximum | 30 |
(1) If the amount of jobseeker’s allowance paid to a person (“the claimant”) for a | |
week or a part of a week exceeds the claimant’s taxable maximum for that | |
period, no liability to income tax arises on the excess. | |
(2) The claimant’s taxable maximum for a period is determined under sections 672 | |
to 674. | 35 |
672 Taxable maximum: general | |
(1) A claimant’s taxable maximum for a week is determined— | |
|
| |
|
| |
|
(a) under section 673, if the claimant is paid an income-based jobseeker’s | |
allowance for that week, or | |
(b) under section 674, if the claimant is paid a contribution-based | |
jobseeker’s allowance for that week. | |
(2) A claimant’s taxable maximum for a part of a week is determined as follows— | 5 |
Step 1 | |
Assume that the jobseeker’s allowance is paid to the claimant for the whole of, | |
rather than part of, the week. | |
Step 2 | |
Determine under section 673 or 674 what the claimant’s taxable maximum for | 10 |
that week would be on that assumption. | |
Step 3 | |
Determine the claimant’s taxable maximum for the part of the week using this | |
formula—![equation: times[cross[over[char[N],num[7.00000000,"7"]],char[T]],char[M],char[W]]](missing.gif) | |
where— | 15 |
N is the number of days in the part of the week for which the claimant is | |
actually paid the jobseeker’s allowance, and | |
TMW is the taxable maximum for the whole week determined under step | |
2. | |
673 Taxable maximum: income-based jobseeker’s allowance | 20 |
(1) A claimant’s taxable maximum for a week is determined under this section if— | |
(a) the claimant is paid an income-based jobseeker’s allowance for that | |
week, or | |
(b) the claimant is assumed under section 672(2) to be paid an income- | |
based jobseeker’s allowance for that week. | 25 |
(2) If the claimant is not a member of a married or unmarried couple, the | |
claimant’s taxable maximum for the week is equal to the age-related amount | |
which would be applicable to the claimant if a contribution-based jobseeker’s | |
allowance were payable to the claimant for that week. | |
(3) If the claimant is a member of a married or unmarried couple, the claimant’s | 30 |
taxable maximum for the week is equal to the portion of the applicable amount | |
which is included in the jobseeker’s allowance in respect of the couple for that | |
week. | |
(4) But if— | |
(a) the claimant is a member of a married or unmarried couple, and | 35 |
(b) the other member of that couple is prevented by section 14 of JSA 1995 | |
or Article 16 of JS(NI)O 1995 (trade disputes) from being entitled to a | |
jobseeker’s allowance, | |
the claimant’s taxable maximum for that week is equal to half the portion of the | |
applicable amount which is included in the jobseeker’s allowance in respect of | 40 |
the couple for that week. | |
|
| |
|