Source: http://www.legislation.gov.uk/ukpga/2003/1/part/10/enacted
Timestamp: 2020-01-26 04:52:36
Document Index: 449634123

Matched Legal Cases: ['art 10', 'art.\n658', 'art 12', 'ART 1', 'art 1', 'art 1', 'ART 2', 'art 9', 'art 6', 'art 6', 'art 9']

Part 10Social security income
Chapter 2Tax on social security income
656Nature of charge to tax on social security income
(1)The charge to tax on social security income is a charge to tax on that income excluding any exempt income.
(2)“Exempt income” is social security income on which no liability to income tax arises as a result of any provision of Chapter 4, 5 or 7 of this Part.
658Amount charged to tax
(1)The amount of social security income which is charged to tax under this Part for a particular tax year is as follows.
(2)In relation to a taxable benefit, the amount charged to tax is the net taxable social security income for the tax year.
(3)The net taxable social security income for a taxable benefit for a tax year is given by the formula—
TSSI - PGD
TSSI means the amount of taxable social security income for that benefit for that year (see subsections (4) to (7)), and
PGD means the amount of the deduction (if any) allowed from the benefit under Part 12 (payroll giving).
(4)In relation to bereavement allowance, carer’s allowance, incapacity benefit and income support (which are listed in Table A), the amount of taxable social security income is determined in accordance with section 661.
(5)In relation to any other benefit listed in Table A, the amount of taxable social security income is the amount of the benefit that falls to be charged to tax.
(6)In relation to foreign benefits to which section 678 applies, the amount of taxable social security income is determined in accordance with section 679.
(7)In determining for the purposes of this Act the amount of taxable social security income, any exempt income is to be excluded.
Chapter 3Taxable UK social security benefits
660Taxable benefits: UK benefits – Table A
(1)This is Table A—
TAXABLE UK BENEFITS
Section 30A(1) or (5), 40 or 41
JSA 1995
JS(NI)O 1995
Statutory adoption pay SSCBA 1992 Section 171ZL
Any provision made for Northern Ireland which corresponds to section 171ZL of SSCBA 1992
Statutory paternity pay SSCBA 1992 Section 171ZA or 171ZB
Any provision made for Northern Ireland which corresponds to section 171ZA or section 171ZB of SSCBA 1992
(2)A benefit listed below is not “social security income” or a “taxable benefit” if it is charged to tax under another Part of this Act—
661Taxable social security income
(1)This section applies in relation to each of the following taxable benefits listed in Table A—
incapacity benefit, and
(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.
662Person 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 4Taxable UK social security benefits: exemptions
666Child 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).
670Child 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).
672Taxable 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—
Assume that the jobseeker’s allowance is paid to the claimant for the whole of, rather than part of, the week.
Determine under section 673 or 674 what the claimant’s taxable maximum for that week would be on that assumption.
N is the number of days in the part of the week for which the claimant is actually paid the jobseeker’s allowance, and
673Taxable maximum: income-based jobseeker’s allowance
(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.
(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 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.
(a)the claimant is a member of a married or unmarried couple, and
(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 the couple for that week.
674Taxable maximum: contribution-based jobseeker’s allowance
(a)the claimant is paid a contribution-based jobseeker’s allowance for that week, or
(b)the claimant is assumed under section 672(2) to be paid a contribution-based jobseeker’s allowance for that week.
(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 is applicable to the claimant for that week.
(3)If the claimant is a member of a married or unmarried couple, the claimant’s taxable maximum for the week is equal to the portion of the applicable amount which would be included in the jobseeker’s allowance in respect of the couple if an income-based jobseeker’s allowance were payable to the claimant for that week.
675Interpretation
(1)In sections 671 to 674, except in relation to Northern Ireland—
“age-related amount” and “applicable amount” mean the amounts determined as such in accordance with regulations made under section 4 of JSA 1995;
“contribution-based jobseeker’s allowance” and “income-based jobseeker’s allowance” have the same meaning as in section 1(4) of JSA 1995;
“married couple” and “unmarried couple” have the same meaning as in section 35(1) of JSA 1995.
(2)In sections 671 to 674, in relation to Northern Ireland—
“age-related amount” and “applicable amount” mean the amounts determined as such in accordance with regulations made under Article 6 of JS(NI)O 1995;
“contribution-based jobseeker’s allowance” and “income-based jobseeker’s allowance” have the same meaning as in Article 3(4) of JS(NI)O 1995;
“married couple” and “unmarried couple” have the same meaning as in Article 2(2) of JS(NI)O 1995.
676Increases in respect of children
No liability to income tax arises on a part of a taxable benefit listed in Table A which is attributable to an increase in respect of a child.
Chapter 5UK social security benefits wholly exempt from income tax
677UK social security benefits wholly exempt from tax: Table B
(1)No liability to income tax arises on the United Kingdom social security benefits listed in Table B.
TABLE B—PART 1
BENEFITS PAYABLE UNDER PRIMARY LEGISLATION
Child tax credit TCA 2002 Part 1
Council tax benefit SSCBA 1992 Section 131
Industrial injuries benefit (apart from industrial death benefit)
Payments out of the social fund
SPCA 2002
SPCA(NI) 2002
Working tax credit TCA 2002 Part 1
TABLE B — PART 2
BENEFITS PAYABLE UNDER REGULATIONS
Payable under regulations made under
Compensation payments where child support reduced because of a change in legislation
CSA 1995
CS(NI)O 1995
Payments to reduce under-occupation by housing benefit claimants
WRPA 1999
WRP(NI)O 1999
(2)Industrial death benefit is charged to tax under Part 9 (see section 577).
(3)In this section “industrial death benefit” means any benefit payable under—
(a)section 94 of, and Part 6 of Schedule 7 to, SSCBA 1992, or
(b)section 94 of, and Part 6 of Schedule 7 to, SSCB(NI)A 1992.
Chapter 6Taxable foreign benefits
678Taxable benefits: foreign benefits
(1)This section applies to any benefit which is payable under the law of a country or territory outside the United Kingdom if—
(a)it is substantially similar in character to a benefit listed in Table A, and
(b)it is payable to a person resident in the United Kingdom.
(2)But this section does not apply to a benefit which is charged to tax under Part 9 (pension income).
679Taxable social security income
(1)If section 678 applies, the taxable social security income for a taxable benefit for a tax year is the amount on which tax would be chargeable if the benefit were chargeable to tax under Case V of Schedule D (see in particular the provisions of ICTA listed in subsection (2)).
(2)Those provisions of ICTA are—
680Person liable for tax
The person liable for any tax charged under this Part on a benefit to which section 678 applies is the person receiving or entitled to the benefit.
Chapter 7Taxable and other foreign benefits: exemptions
681Taxable and other foreign benefits: exemptions
(1)No liability to income tax arises on a taxable foreign benefit if, or to the extent that, the corresponding UK benefit is exempt income.
(2)No liability to income tax arises on a benefit which is payable under the law of a country or territory outside the United Kingdom if it is substantially similar in character to a United Kingdom social security benefit listed in Table B.
“taxable foreign benefit” means a benefit to which section 678 applies;
“corresponding UK benefit”, in relation to a taxable foreign benefit, means the taxable benefit listed in Table A to which the foreign benefit is substantially similar in character (see section 678).