The Social Security (Contributions) (Amendment No. 2) Regulations 2012

JurisdictionUK Non-devolved
CitationSI 2012/817

2012 No. 817

Social Security

The Social Security (Contributions) (Amendment No. 2) Regulations 2012

Made 13th March 2012

Laid before Parliament 14th March 2012

Coming into force 6th April 2012

These Regulations are made by the Treasury with the concurrence of the Secretary of State and the Department for Social Development1in relation to regulations 3 to 6, 7(2), 9 and 11 and to regulation 2 insofar as it relates to the amendments made by regulations 3 to 6, 7(2), 9 and 11.

The powers exercised by the Treasury are those conferred by sections 1(6) and (7), 3(2) and (3), 10(9), 19(1), (2) and (5A), 122(1), and 175(3) and (4) of the Social Security Contributions and Benefits Act 19922and sections 1(6) and (7), 3(2) and (3), 10(9), 19(1), (2) and (5A), 121(1) and 171(3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 19923and now exercisable by them.

1 General

PART 1

General

Citation, commencement and effect
S-1 Citation, commencement and effect

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Social Security (Contributions) (Amendment No. 2) Regulations 2012 and come into force on 6th April 2012.

(2) The amendments made by regulation 8 have effect in relation to contributions paid in respect of the tax year 2011-2012 and subsequent tax years.

Amendment of the Social Security (Contributions) Regulations 2001
S-2 Amendment of the Social Security (Contributions) Regulations 2001

Amendment of the Social Security (Contributions) Regulations 2001

2. The Social Security (Contributions) Regulations 20014are amended as follows.

2 Amendments relating to pensions

PART 2

Amendments relating to pensions

Amendments relating to the abolition of certain types of contracted-out pensions

Amendments relating to the abolition of certain types of contracted-out pensions

S-3 In paragraph (2) of regulation 1 (citation, commencement and...

3. In paragraph (2) of regulation 1 (citation, commencement and interpretation)—

(a) omit ““COMPS employment” means employment in respect of which minimum payments are made to a money purchase pension scheme contracted out under section 9(3) of the Pensions Act;”; and

(b) in the definition of “contracted-out rate”—

(i) in sub-paragraph (a) for “upper earnings limit” substitute “upper accrual point”; and

(ii) omit sub-paragraph (b).

S-4 For paragraph (3) of regulation 6 (earnings periods for...

4. For paragraph (3) of regulation 6 (earnings periods for earnings to be aggregated where the earnings period for those earnings would be of different lengths) substitute—

S-3

“3 In this regulation “the designated earnings period” means—

(a) where the earnings are derived from employments which include any contracted-out employment and any non-contracted out employment, the earnings period in respect of earnings derived from the contracted-out employment or, if there is more than one such employment, the shorter, or as the case may be the shortest, of the earnings periods in respect of earnings derived from such employments; and

(b) in any other case, the shorter, or as the case may be the shortest, of the earnings periods in respect of the earnings derived from such employments.”.

S-5 In paragraph 7(13)(b) of Schedule 4 (calculation of deduction)...

5. In paragraph 7(13)(b) of Schedule 4 (calculation of deduction) omit “or section 42A(1) to 2(A)”.

Amendments to Part 6 of Schedule 3
S-6 Amendments to Part 6 of Schedule 3

Amendments to Part 6 of Schedule 3

6. In Part 6 of Schedule 3 (pensions and pension contributions)—

(a) in paragraph (2)(a) after “section 308” omit “(1)”; and

(b) for paragraph 10(5)(a) substitute “any pension payable under its rules would have satisfied pension rules 1, 3 and 4;”.

3 Amendments relating to the abolition of disregards

PART 3

Amendments relating to the abolition of disregards

Amendments relating to the abolition of disregards
S-7 Amendments relating to the abolition of disregards

Amendments relating to the abolition of disregards

7.—(1) In regulation 40 (prescribed general earnings in respect of which Class 1A contributions not payable) omit paragraph (4).

(2) Omit regulation 123 (payments to mariners to be disregarded).

(3) In regulation 145 (condition as to residence or presence in Great Britain or Northern Ireland)—

(a)

(a) in paragraph (1) for “paragraphs (2) and (3)” substitute “paragraph (2)”; and

(b)

(b) omit paragraph (3).

(4) In paragraph 2 of Part 8 of Schedule 3 (travelling, relocation and other expenses and allowances of the employment) omit—

(a)

(a) sub-paragraph (2)(b) and the “or” before it; and

(b)

(b) sub-paragraph (6).

4 Return of contributions paid in excess of maxima prescribed

PART 4

Return of contributions paid in excess of maxima prescribed

Return of contributions paid in excess of maxima prescribed
S-8 Return of contributions paid in excess of maxima prescribed

Return of contributions paid in excess of maxima prescribed

8. In paragraph (6) of regulation 52A (return of contributions paid in excess of maxima prescribed in regulation 21)—

(a) for “11%” in each place where it appears, substitute “12%”; and

(b) for “9.4%” in each place where it appears, substitute “10.4%”.

5 HM Forces

PART 5

HM Forces

HM Forces
S-9 HM Forces

HM Forces

9. In Part 8 of Schedule 3 (travelling, relocation and other expenses and allowances to be disregarded in the calculation of employed earners’ earnings)—

(a) for paragraph 12A (HM Forces’ Operational Allowance) substitute—

S-12A

HM Forces’ Operational Allowance

12A.—(1) A payment of the Operational Allowance to members of the armed forces of the Crown.

(2) The Operational Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 20065.”;

(b) for paragraph 12B (HM Forces’ Council Tax Relief) substitute—

S-12B

HM Forces’ Council Tax Relief

12B.—(1) A payment of Council Tax Relief to members of the armed forces of the Crown.

(2) Council Tax Relief is a payment designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.”; and

(c) after that paragraph insert—

S-12C

HM Forces’ Continuity of Education Allowance

12C.—(1) A payment of the Continuity of Education Allowance to or in respect of members of the armed forces of the Crown.

(2) The Continuity of Education Allowance is an allowance designated as such under a Royal Warrant made under section 333 of the Armed Forces Act 2006.”.

6 Miscellaneous provisions

PART 6

Miscellaneous provisions

Amendment of the Social Security (Contributions) (Amendment No. 5) Regulations 2003
S-10 Amendment of the Social Security (Contributions) (Amendment No. 5) Regulations 2003

Amendment of the Social Security (Contributions) (Amendment No. 5) Regulations 2003

10. Omit paragraph (4) of regulation 6 of the Social Security (Contributions) (Amendment No. 5) Regulations 20036.

Savings to Part 2
S-11 Savings to Part 2

Savings to Part 2

11.—(1) Nothing in Part 2 affects the operation of the Social Security (Contributions) Regulations 2001 in relation to obligations arising in connection with tax years beginning prior to 6th April 2012.

(2) For the purposes of paragraph (1)...

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