The Tax Credits (Miscellaneous Amendments) Regulations 2006
| Jurisdiction | UK Non-devolved |
| Citation | SI 2006/766 |
| Year | 2006 |
2006 No. 766
TAX CREDITS
The Tax Credits (Miscellaneous Amendments) Regulations 2006
Made 14th March 2006
Laid before Parliament 15th March 2006
Coming into force 6th April 2006
These Regulations are made by the Treasury and the Commissioners for Her Majesty’s Revenue and Customs1.
The powers exercised by the Treasury are those contained in sections 3(7), 7(8) and (9), 8(2) and (4), 10, 12, 65(1), (3), (7) and (9) and 66 of the Tax Credits Act 20022.
The powers exercised by the Commissioners for Her Majesty’s Revenue and Customs are those contained in sections 22(2), 65(2) and 66 of that Act.
Citation and commencement
1. These Regulations may be cited as the Tax Credits (Miscellaneous Amendments) Regulations 2006 and shall come into force on 6th April 2006.
Amendment of the Tax Credits (Claims and Notifications) Regulations 2002
2.—(1) The Tax Credits (Claims and Notifications) Regulations 20023are amended as follows.
(2) In regulation 11(3)(a)4for “30th September” substitute “31st August”.
(3) In regulation 33(a)5for “30th September” substitute “31st August”.
Amendment of the Child Tax Credit Regulations 2002
3. In regulation 5(2) of the Child Tax Credit Regulations 20026for “date of leaving education” substitute “relevant leaving date”.
Amendment of the Tax Credits (Residence) Regulations 2003
4.—(1) The Tax Credits (Residence) Regulations 20037are amended as follows.
(2) In regulation 3(4)—
(i)
(i) after “No 1612/68” insert “as amended by Council Directive No 2004/38/EC8,”
(ii)
(ii) for “Council Directive No 68/360/EEC” onwards substitute “Council Directive No 2004/38/EC.”
Amendment of the Tax Credits (Residence)(Amendment) Regulations 2004
5. Regulation 1(2) of the Tax Credits (Residence)(Amendment) Regulations 20049shall cease to have effect, and accordingly regulation 3(5) of the Tax Credits (Residence) Regulations 2003 shall not lapse on 1st May 2006.
Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002
6. The Tax Credits (Definition and Calculation of Income) Regulations 200210are amended as follows.
7.—(1) Regulation 2(2) (interpretation) is amended as follows.
(a)
(a) for the definition of “the Board” substitute—
““the Board” means the Commissioners for Her Majesty’s Revenue and Customs;”;
(b)
(b) for the definition of “employment zone” substitute—
““employment zone” means an area within Great Britain—
(i) subject to a designation for the purposes of the Employment Zones Regulations 200311by the Secretary of State, or
(ii) listed in the Schedule to the Employment Zones (Allocation to Contractors) Pilot Regulations 200512,
pursuant to section 60 of the Welfare Reform and Pensions Act 199913;;”;
(c)
(c) after the definition of “ITEPA” insert—
““ITTOIA” means the Income Tax (Trading and Other Income) Act 200514;”; and
(d)
(d) omit the definition of “Schedule D;”.
8.—(1) Regulation 3 (calculation of income of claimant) is amended as follows.
(2) In paragraph 1, Step Four, after the third sentence insert—
“A loss shall not be available for tax credits purposes, unless the trade was being carried on upon a commercial basis and with a view to the realisation of profits in the trade or, where the carrying on of the trade formed part of a larger undertaking, in the undertaking as a whole.”.
(3) In paragraph (3)(b) for “section 584 of the Taxes Act,” substitute “Chapter 4 of Part 8 of ITTOIA,”.
(4) In paragraph (8)—
(a)
(a) in sub-paragraph (a) for “Schedule A business” substitute “UK property business”; and
(b)
(b) at the end, for —
“In this paragraph “Schedule A business” and “overseas property business” have the same meanings as they have in the Taxes Act.”
substitute—
“In this paragraph “UK property business” and “overseas property business” have the same meanings as they have in Chapter 2 of Part 3 of ITTOIA.”.
9.—(1) Regulation 4 (employment income) is amended as follows.
(2) Omit paragraphs (2A) and (2B)15.
(3) In Table 1, after item 16 insert—
“16A. A payment made by the Department for Employment and Learning in Northern Ireland under section 1 of the Employment and Training Act (Northern Ireland) 195016by way of Return to Work Credit.”.
10.—(1) Regulation 5(1) (pension income) is amended as follows.
(2) At the end add—
“(n)
“(n) any social security pension lump sum to which section 7 of the Finance (No. 2) Act 200517applies; and
(o)
(o) any lump sum payment to which section 636B or 636C18of ITEPA applies.”.
11.—(1) Regulation 6 (trading income) is amended as follows.
(2) For the second sentence substitute—
“Here “taxable profits” has the same meaning as it has in Part 2 of ITTOIA but disregarding Chapter 16 of that Part (averaging profits of farmers and creative artists).”.
12.—(1) Regulation 8 (student income) is amended as follows.
(2) For paragraph (a) substitute—
“(a)
“(a) in England, any adult dependants' grant payable—
(i) under regulation 17 of the Education (Student Support) Regulations 200519in relation to an academic year which begins on or after 1st September 2005 but before 1st September 2006; or
(ii) under regulation 41 of the Education (Student Support) Regulations 200620in relation to an academic year which begins on or after 1st September 2006;”.
(3) In paragraph (b), at the end omit “and”.
(4) In paragraph (c), at the end add “and”.
(5) After paragraph (c) add—
“(d)
“(d) in Wales, any adult dependants' grant payable—
(i) under regulation 17 of the Education (Student Support) Regulations 2005 in relation to an academic year which begins on or after 1st September 2005 but before 1st September 2006; or
(ii) under regulation 22 of the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 200621in relation to an academic year which begins on or after 1st September 2006.”.
13. For regulation 9 (payments of income in connection with students to be disregarded for the purposes of regulation 3) substitute—
“Payments of income in connection with students to be disregarded for the purposes of regulation 3
9. Income which is exempt from income tax by virtue of section 753 or 776 of ITTOIA (which deal respectively with interest on the repayment of student loans and scholarship income) is disregarded in calculating a claimant’s income under regulation 3.”.
14.—(1) Regulation 10 (investment income) is amended as follows.
(2) In paragraph (1)(e) for “section 547(1)(a) of the Taxes Act.” substitute—
“Chapter 9 of Part 4 of ITTOIA disregarding section 535 (top slicing relief).”.
(3) In paragraph (2)—
(a)
(a) in sub-paragraph (c) for “section 46 of the Taxes Acts” substitute “section 692, 693 or 750 of ITTOIA”;
(b)
(b) in sub-paragraph (d) for—
“section 325 of the Taxes Act (interest on deposits with National Savings and Investments).”
substitute “section 691 of ITTOIA (National Savings Bank ordinary account interest).”; and
(c)
(c) in sub-paragraph (e) for the words following “by virtue of” substitute—
“section 727 of ITTOIA (certain annual payments by individuals).”.
(4) In Table 4—
(a)
(a) in item 1, for “section 333 of the Taxes Act” substitute “Chapter 3 of Part 6 of ITTOIA”;
(b)
(b) omit item 2;
(c)
(c) for item 3 substitute—
“3. Any interest payable under a certified SAYE savings arrangement for the purposes of Chapter 4 of Part 6 of ITTOIA.”;
(d)
(d) in item 8—
(i) omit “in respect of interest”;
(ii) for paragraph (a) substitute—
“(a)
“(a) section 751 of ITTOIA (interest on damages for personal injury), or” and
(iii) in paragraph (b) for “section 329AA of the Taxes Act” substitute “section 731 of ITTOIA (periodical payments of personal injury damages)”.
(e)
(e) in item 9—
(i) for “section 329AB(2) of the Taxes Act” substitute “section 732(3) of ITTOIA”; and
(ii) in the entry in column 2 for “section 329AA of the Taxes Act” substitute “section 731 of ITTOIA”;
(f)
(f) in item 12—
(i) for “section 656 of the Taxes Act” substitute “Chapter 7 of Part 4 of ITTOIA”; and
(ii) for the entry in column 2 substitute—
“The amount exempted under section 717 of ITTOIA as calculated under section 719 of that Act.”; and
(g)
(g) after item 12 add—
15.—(1) Regulation 11 (property income) is amended as follows.
(2) In paragraph (1)—
(a)
(a) for “section 15 of the Taxes Act” substitute “Part 3 of ITTOIA”; and
(b)
(b) for “that section” wherever it occurs substitute “that Part”.
(3) For paragraph (2) substitute—
“2 In calculating property income there shall be disregarded any profits—
(a) treated as...
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