The Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2016

JurisdictionUK Non-devolved
CitationSI 2016/267
Year2016

2016 No. 267

Social Security

The Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2016

Made 2nd March 2016

Laid before Parliament 3rd March 2016

Coming into force 6th April 2016

These Regulations are made by the Treasury with the concurrence of the Secretary of State for Work and Pensions in exercise of the powers conferred by sections 3(2) and (3), 122(1) and 175(3) of the Social Security Contributions and Benefits Act 19921.

In accordance with section 173(1)(b) of the Social Security Administration Act 19922, the Social Security Advisory Committee has agreed that proposals in respect of these Regulations should not be referred to it.

S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2016 and come into force on 6th April 2016.

S-2 Amendments to the Social Security Benefit (Computation of Earnings) Regulations 1996

Amendments to the Social Security Benefit (Computation of Earnings) Regulations 1996

2.—(1) The Social Security Benefit (Computation of Earnings) Regulations 19963are amended as follows.

(2) In regulation 2(1) (interpretation)—

(a)

(a) omit the definition of “lower rate”;

(b)

(b) at the appropriate places insert—

““basic rate” means the rate of income tax of that name determined in pursuance of section 6(2) of the Income Tax Act 20074;”;

““Scottish basic rate” means the rate of income tax of that name calculated in accordance with section 6A of the Income Tax Act 20075;”; and

““Scottish taxpayer” has the same meaning as in Chapter 2 of Part 4A of the Scotland Act 19986;”.

(3) In regulation 4 (notional earnings)—

(a)

(a) omit paragraph (2);

(b)

(b) in paragraph (3) omit “or (2)”; and

(c)

(c) in paragraph (3)(a)—

(i) for “lower rate or, as the case may be, the lower rate and the basic rate” substitute “basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate,”;

(ii) for “personal relief to which the claimant is entitled under sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988 (personal reliefs) as is” substitute “personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 20077as are”;

(iii) for “lower rate” in the third place it appears substitute “basic rate, or the Scottish basic rate,”; and

(iv) for “relief” in the second place it appears substitute “reliefs”.

(4) In regulation 14(1) (deduction of tax and contributions for self-employed earners)—

(a)

(a) for the words from “lower rate” the first time it appears to “as is” substitute “basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax less only the personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are”;

(b)

(b) for “lower rate” in the third place it appears substitute “basic rate, or the Scottish basic rate,”; and

(c)

(c) for “relief” in the second place it appears substitute “reliefs”.

(5) In paragraph 6 of Schedule 1 (sums to be disregarded in the calculation of...

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