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Housing Renewal Grants (Reduction of Grant) Regulations (Northern Ireland) 2004

Type Ni-Statutory-Rule

Publication 2004-01-09

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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Made: 9th January 2004

Coming into operation: 16th February 2004

The Department for Social Development[^f00001], in exercise of the powers conferred by Article 47[^f00002] of the Housing (Northern Ireland) Order 1992[^f00003] as applied by Regulations[^f00004] made under Article 73 of that Order and now exercisable by it[^f00005] and conferred on it by Articles 61, 62(5) and 148(1) of the Housing (Northern Ireland) Order 2003[^f00006], and of every other power enabling it in that behalf, hereby makes the following Regulations:

PART 1 — GENERAL

Citation and commencement

1

These Regulations may be cited as the Housing Renewal Grants (Reduction of Grant) Regulations (Northern Ireland) 2004 and shall come into operation on 16th February 2004.

Interpretation

2

(1) In these Regulations –

“adoption leave” means a period of absence from work on ordinary or additional adoption leave under Article 107A or 107B of the Employment Rights (Northern Ireland) Order 1996[^f00007];

“application” means an application within Article 61 or 62 of the Order or, as the case may be, Article 73 of the Housing (Northern Ireland) Order 1992;

“assessment period” means such period as is prescribed in regulations 21 to 23 over which income falls to be determined;

“attendance allowance” means – an attendance allowance under section 64 of the 1992 Act[^f00008]; an increase of disablement pension under section 104 or 105 of that Act; a payment under regulations made in exercise of the power conferred by paragraph 4(2)(b) of Schedule 8 to that Act; a payment analogous to a payment by way of an increase of an allowance payable in respect of constant attendance under paragraph 4 of Schedule 8 to the Social Security Contributions and Benefits Act 1992[^f00009]; a payment by virtue of Article 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians) Scheme 1983[^f00010] or any analogous payment; any payment based on need for attendance which is paid as part of a war disablement pension;

“benefit week” means a period of 7 consecutive days commencing upon a Monday and ending on a Sunday;

“carer’s allowance” means a carer’s allowance under section 70[^f00011] of the 1992 Act;

“charity” has the meaning given by section 35 of the Charities Act (Northern Ireland) 1964[^f00012], and “charitable body” shall be construed accordingly;

“child” means a person under the age of 16;

“child benefit” means a child benefit under Part IX of the 1992 Act;

“child tax credit” means a child tax credit under section 8 of the Tax Credits Act 2002[^f00013];

“close relative” means a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister, or the spouse of any of the preceding persons or, if that person is one of an unmarried couple, the other member of that couple;

“concessionary payment” means a payment made under arrangements made by the Department for Social Development, with the consent of the Department of Finance and Personnel, which is charged either to the Northern Ireland National Insurance Fund or to a Departmental Expenditure Vote to which payments of benefit under the 1992 Act are charged;

“Crown property” means property held by Her Majesty in right of the Crown or by a government department or which is held in trust for Her Majesty for the purposes of a government department, except (in the case of an interest held by Her Majesty in right of the Crown) where the interest is held under the management of the Crown Estate Commissioners;

“Crown Estate Commissioners” have the same meaning as in the Interpretation Act 1978[^f00014];

“disability living allowance” means a disability living allowance under section 71 of the 1992 Act;

“earnings” has the meaning assigned by regulation 25 or, as the case may be, 27;

“education and library board” means an education and library board established under Article 3 of the Education and Libraries (Northern Ireland) Order 1986[^f00015];

“the Eileen Trust” means the charitable trust of that name established on 29th March 1993 out of funds provided by the Secretary of State for Social Security for the benefit of persons eligible for payment in accordance with its provisions;

“employed earner” means a person who is gainfully employed in Northern Ireland or the Republic of Ireland either under a contract of service, or in an office (including elective office) with emoluments chargeable to income tax under Schedule E or, as the case may be, chargeable under the legislation of the Republic of Ireland which is analogous to income tax under Schedule E, and also includes a person who is in receipt of a payment which is payable under any statutory provision having effect in Great Britain and which corresponds to statutory sick pay or statutory maternity pay[^f00016];

“family” means – a married or unmarried couple; a married or unmarried couple and a member of the same household for whom one of them is, or both are, responsible and who is a child or a young person; a person who is not a member of a married or unmarried couple and a member of the same household for whom that person is responsible and who is a child or a young person;

“the Fund” means moneys made available from time to time by the Secretary of State for the benefit of persons eligible for payment in accordance with the provisions of a scheme established by him on 24th April 1992, or in Scotland, on 10th April 1992;

“guarantee credit” shall be construed in accordance with sections 1 and 2 of the State Pension Credit Act (Northern Ireland) 2002[^f00017];

“Health and Social Services Board” means a Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972[^f00018];

“higher rate” where it relates to rates of tax means any rate of income tax determined in pursuance of section 1(2)(b) of the Income and Corporation Taxes Act 1988[^f00019];

“housing benefit” means housing benefit under Part VII of the 1992 Act;

“incapacity benefit” means short-term incapacity benefit or long-term incapacity benefit under section 30A of the 1992 Act[^f00020] (incapacity benefit: entitlement);

“income-based jobseeker’s allowance” and “a joint claim jobseeker’s allowance” have the same meaning as they have in Article 3(4) of the Jobseekers (Northern Ireland) Order 1995[^f00021];

“income-related benefit” means any benefit to which section 122(1) of the 1992 Act refers;

“income support” means income support under Part VII of the 1992 Act;

“the Independent Living Fund” means the charitable trust established out of funds provided by the Secretary of State for the purpose of providing financial assistance to those persons incapacitated by, or otherwise suffering from, very severe disablement who are in need of such assistance to enable them to live independently;

“the Independent Living (Extension) Fund” means the Trust of that name established by a deed dated 25th February 1993 and made between the Secretary of State for Social Security of the one part and Robin Glover Wendt and John Fletcher Shepherd of the other part;

“the Independent Living (1993) Fund” means the Trust of that name established by a deed dated 25th February 1993 and made between the Secretary of State for Social Security of the one part and Robin Glover Wendt and John Fletcher Shepherd of the other part;

“the Independent Living Funds” means the Independent Living Fund, the Independent Living (Extension) Fund and the Independent Living (1993) Fund;

“invalid carriage or other vehicle” means a vehicle propelled by petrol engine or electric power supplied for use on the road and to be controlled by the occupant;

“the Jobseeker’s Allowance Regulations” means the Jobseeker’s Allowance Regulations (Northern Ireland) 1996[^f00022];

“lone parent” means a person who has no partner and who is responsible for and a member of the same household as a child or young person;

“long-term incapacity benefit” means long-term incapacity benefit under Part II of the 1992 Act;

“lower rate” where it relates to rates of tax has the same meaning as in the Income and Corporation Taxes Act 1988 by virtue of section 832(1) of that Act[^f00023];

“the Macfarlane Trust” means the charitable trust, established partly out of funds provided by the Secretary of State for Social Security to the Haemophilia Society, for the relief of poverty or distress among those suffering from haemophilia;

“the Macfarlane (Special Payments) (No. 2) Trust” means the trust of that name, established on 3rd May 1991, partly out of funds provided by the Secretary of State for Social Security for the benefit of certain persons suffering from haemophilia and other beneficiaries;

“the Macfarlane (Special Payments) Trust” means the trust of that name, established on 29th January 1990, partly out of funds provided by the Secretary of State for Social Security for the benefit of certain persons suffering from haemophilia;

“married couple”, except in regulation 11(2)(b), paragraph 12(b) of Schedule 2, paragraph 4(b) of Schedule 3 and paragraph 6(b) of Schedule 4, has the meaning assigned to it by section 133 of the 1992 Act;

“maternity leave” means a period during which a woman is absent from work because she is pregnant or has given birth to a child, and at the end of which she has a right to return to work either under the terms of her contract of employment or under Part IX of the Employment Rights (Northern Ireland) Order 1996[^f00024];

“member of a couple” means a member of a married or unmarried couple;

“mobility supplement” means a supplement to which paragraph 7 of Schedule 3 refers;

“net earnings” means such earnings as are determined in accordance with regulation 26;

“net profit” means such profit as is determined in accordance with regulation 28;

“the New Deal Options” means the employment programmes specified in regulation 75(1)(a)(i) of the Jobseeker’s Allowance Regulations and the training scheme specified in regulation 75(1)(b)(ii) of those Regulations;

“non-dependant” has the meaning assigned by regulation 7;

“occupational pension” means any pension or other periodical payment under an occupational pension scheme but does not include any discretionary payment out of a fund established for relieving hardship in particular cases;

“the Order” means the Housing (Northern Ireland) Order 2003;

“partner” means – where a person is a member of a married or unmarried couple, the other member of that couple; or where a person is polygamously married to two or more members of his household, any such member;

“parental leave” means maternity leave, paternity leave or adoption leave;

“paternity leave” means a period of absence from work on leave under Article 112A or 112B of the Employment Rights (Northern Ireland) Order 1996[^f00025];

“payment” includes part of a payment;

“pension fund holder” means with respect to a personal pension scheme or retirement annuity contract, the trustees, managers or scheme administrators, as the case may be, of the scheme or contract concerned;

“personal pension scheme” has the same meaning as in section 1 of the Pension Schemes (Northern Ireland) Act 1993[^f00026] and, in the case of a self-employed earner, includes a scheme approved by the Board of Inland Revenue under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988[^f00027];

“policy of life insurance” means any instrument by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life;

“polygamous marriage” means any marriage during the subsistence of which a party to it is married to more than one person and the ceremony of marriage took place under the law of a country which permits polygamy;

“Preparation for Employment Programme” means the programme known by that name as defined for the purposes of the Jobseeker’s Allowance Regulations in regulation 75(i)(a)(v)[^f00028] of those Regulations;

“Preparation for Employment Programme for 50 plus” means the programme known by that name as defined for the purposes of the Jobseeker’s Allowance Regulations in regulation 1(2)[^f00029] of those Regulations;

“qualifying person” means a person in respect of whom payment has been made from the Fund;

“rates” has the same meaning as in the Rates (Northern Ireland) Order 1977[^f00030];

“relevant person” has the meaning assigned by regulation 6;

“remunerative work” has the meaning assigned by regulation 8;

“a retirement annuity contract” means a contract or trust scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988;

“self-employed earner” means a person who is gainfully employed in Northern Ireland or the Republic of Ireland otherwise than in employed earner’s employment (whether or not he is also employed in such employment);

“short-term incapacity benefit” means short-term incapacity benefit under Part II of the 1992 Act;

“single person” means a person who neither has a partner nor is a lone parent;

“social fund payment” means a payment under section 134 of the 1992 Act;

“sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 1993[^f00031] out of sums allocated to it for distribution under that section;

“state pension credit” has the same meaning as in the State Pension Credit Act (Northern Ireland) 2002[^f00032];

“statutory maternity pay” means a statutory maternity pay under Part XII of the 1992 Act;

“statutory sick pay” means statutory sick pay under Part XI of the 1992 Act;

“student” has the meaning assigned by regulation 42;

“the 1992 Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992[^f00033];

“training allowance” means an allowance (whether by way of periodical grants or otherwise) payable – out of public funds by a government department or by or on behalf of the Department for Employment and Learning; to a person for his maintence or in respect of a member of his family, and for the period, or part of the period, during which he is following a course of training or instruction provided by, or in pursuance of arrangements made with, a government department or approved by such department in relation to him or so provided or approved by or on behalf of the Department for Employment and Learning, but it does not include an allowance paid by any government department to, or in respect of, a person by reason of the fact that he is following a course of full-time education, other than under arrangements provided under section 1(1) of the Employment and Training Act (Northern Ireland) 1950[^f00034] or is training as a teacher;

“unmarried couple” means, except in regulation 11(2)(b), paragraph 12(b) of Schedule 2, paragraph 4(b) of Schedule 3 and paragraph 6(b) of Schedule 4, two persons who are living together as if they were husband and wife;

“voluntary organisation” means any association carrying on any activities otherwise than for the purpose of gain by the association or by individual members;

“war disablement pension” has the meaning assigned by section 146(2) of the 1992 Act;

“war widow’s pension” has the meaning assigned by section 146(2) of the 1992 Act;

“war widower’s pension” means any widower’s pension or allowance granted in respect of a death due to service or war injury and payable by virtue of the Air Force (Constitution) Act 1917[^f00035], the Personal Injuries (Emergency Provisions) Act 1939[^f00036], the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939[^f00037], the Polish Resettlement Act 1947[^f00038] or Part 7 or section 151 of the Reserve Forces Act 1980[^f00039];

“working tax credit” means a working tax credit under section 10 of the Tax Credits Act 2002.

“year of assessment” has the meaning assigned by section 832(1) of the Income and Corporation Taxes Act 1988;

“young person” means a person, not being a person who is in receipt of income support or income-based jobseeker’s allowance or a person who is receiving advanced education within the meaning of regulation 12(2) of the Income Support (General) Regulations (Northern Ireland) 1987[^f00040] (relevant education), aged 16 or over but under 19 who is treated as a child for the purposes of section 138 of the 1992 Act (meaning of child).

(2) For the purposes of these Regulations, two persons shall be taken to be estranged only if their estrangement constitutes a breakdown of the relationship between them.

(3) For the purposes of these Regulations, a person is on an income-based jobseeker’s allowance on any day in respect of which an income-based jobseeker’s allowance is payable to him and on any day –

(a) in respect of which he satisfies the conditions for entitlement to an income-based jobseeker’s allowance but where the allowance is not paid in accordance with Article 21 of the Jobseekers (Northern Ireland) Order 1995[^f00041] (circumstances in which a jobseeker’s allowance is not payable), or

(b) which is a waiting day for the purposes of paragraph 4 of Schedule 1 to that Order and which falls immediately before a day in respect of which an income-based jobseeker’s allowance is payable to him but for Article 21 of that Order.

Persons from abroad

3

No grant shall be payable under Part III of the Order if the applicant, or any of the applicants, or any person who is not an applicant but is entitled to make an application and lives or intends to live in the dwelling or, as the case may be, a flat in the building, is a person from abroad within the meaning of regulation 7A of the Housing Benefit (General) Regulations (Northern Ireland) 1987[^f00042] (persons from abroad).

Landlord’s applications: power for Executive to obtain information from pension fund holders

4

In the case of any application to which Article 62 of the Order (determination of amount of grant in case of landlord’s application) applies, the Executive may require a pension fund holder to provide it with the information specified in paragraph (8) of regulation 32 (details of deferred income under personal pension scheme or retirement annuity contract) for the purpose of determining as described in paragraphs (4) and (5) of that regulation the amount of any income foregone under a personal pension scheme or retirement annuity contract by an applicant, or a partner of an applicant, who is aged not less than 60.

Requirement to produce national insurance number

5

Where an application for a grant to which Article 61 (means testing in case of application by owner-occupier or tenant) or 62 of the Order applies has been made, the Executive shall require any person, who is a relevant person in respect of that application within the meaning of regulation 6 below, to provide:

(a) a statement of the relevant person’s national insurance number and information or evidence establishing that that number has been allocated to that person; or

(b) information or evidence enabling the national insurance number which has been allocated to that person to be ascertained; or

(c) information or evidence that the relevant person has applied for a national insurance number to be allocated to him and has included with that application sufficient information or evidence to enable the number to be allocated.

Definition of relevant person

6

(1) Subject to paragraph (3), in respect of any one application other than an application for a disabled facilities grant, a relevant person is any person who –

(a) is an applicant, or

(b) is not an applicant but is entitled to make the application and lives or intends to live in the dwelling or, as the case may be, a flat in the building,

provided that a young person shall not be a relevant person except where he is the only applicant.

(2) Subject to paragraph (3), in respect of any one application for a disabled facilities grant a relevant person is any person who –

(a) is the disabled occupant, or one of the disabled occupants, of the dwelling or the flat in the building and is not a child or young person; or

(b) is the partner, or a partner, of the disabled occupant or of one of the disabled occupants and is not a child or young person; and

is not the parent or guardian of a disabled child who lives or intends to live in the dwelling or, as the case may be, a flat in the building.

(3) Where any of sub-paragraphs (a) or (b) of paragraph (1), or any of sub-paragraphs (a) or (b) of paragraph (2) applies to both members of a couple or to more than one member of a polygamous marriage, one member only of that couple or of that polygamous marriage shall be a relevant person in respect of that application.

Definition of non-dependant

7

(1) In these Regulations, “non-dependant” means any person, except someone to whom paragraph (2) applies, who normally resides with a relevant person or with whom a relevant person normally resides.

(2) This paragraph applies to –

(a) any members of the relevant person’s family;

(b) if the relevant person is polygamously married, any partner of his and any child or young person who is a member of his household and for whom he or one of his partners is responsible;

(c) a child or young person who is living with the relevant person but who is not a member of his household by virtue of regulation 10 (membership of the same household);

(d) subject to paragraph (3), a person who jointly occupies the relevant person’s dwelling and is either a co-owner of that dwelling with the relevant person or his partner (whether or not there are other co-owners) or is liable with the relevant person or his partner to make payments in respect of his occupation of the dwelling;

(e) subject to paragraph (3) –

(i) any person who is liable to make payments on a commercial basis to the relevant person or the relevant person’s partner in respect of the occupation of the dwelling;

(ii) any person to whom or to whose partner the relevant person or the relevant person’s partner is liable to make payments on a commercial basis in respect of the occupation of the dwelling; or

(iii) any other member of the household of the person to whom or to whose partner the relevant person or the relevant person’s partner is liable to make payments on a commercial basis in respect of the occupation of the dwelling.

(f) a person who lives with the relevant person in order to care for him or a partner of his and who is engaged by a charitable or voluntary organisation (other than a Health and Social Services Board) which makes a charge to the relevant person or his partner for the services provided by that person.

(3) Excepting persons to whom paragraph 2(a) to (c) and (f) refers, a person shall be a non-dependant if he resides with a relevant person to whom he is liable to make payments in respect of the dwelling and either –

(a) the relevant person is a close relative of him or his partner, or

(b) the tenancy or other agreement between them is other than on a commercial basis.

(4) For the purposes of this regulation –

(a) a person resides with another only if they share any accommodation but not if that accommodation is a bathroom, a lavatory or a communal area or any combination of them and not if each person is separately liable to make payments in respect of his occupation of the dwelling to the landlord;

(b) “communal area” means an area, other than a room or rooms, of common access (including halls and passageways).

Remunerative work

8

(1) Subject to the following provisions of this regulation, a person shall be treated for the purposes of these Regulations as engaged in remunerative work if he is engaged, or, where his hours of work fluctuate, he is engaged on average, for not less than 16 hours a week, in work for which payment is made or which is done in expectation of payment.

(2) Subject to paragraph (3), in determining the number of hours for which a person is engaged in work where his hours of work fluctuate, regard shall be had to the average of hours worked over –

(a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does not work, those periods but disregarding any other absences);

(b) in any other case, the period of 5 weeks immediately prior to the date of the application, or such other length of time as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately.

(3) Where, for the purposes of paragraph (2)(a), a person’s recognisable cycle of work at a school, other educational establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which he does not work, those periods and any other periods not forming part of such holidays or vacations during which he is not required to work shall be disregarded in establishing the average hours for which he is engaged in work.

(4) Where no recognisable cycle has been established in respect of a person’s work, regard shall be had to the number of hours or, where those hours fluctuate, the average of the hours, which he is expected to work in a week.

(5) A person shall be treated as engaged in remunerative work during any period for which he is absent from work referred to in paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

(6) A person in receipt of income support, state pension credit or an income-based jobseeker’s allowance for more than 3 days in any period of 7 consecutive days commencing upon a Monday and ending on a Sunday shall be treated as not being in remunerative work in that week.

(7) A person shall not be treated as engaged in remunerative work in any week in which he is participating in the Preparation for Employment Programme.

(8) A person shall not be treated as engaged in remunerative work on any day on which that person is on parental leave or is absent from work because he is ill.

(9) A person shall not be treated as engaged in remunerative work on any day on which that person is engaged in an activity in respect of which –

(a) a sports award has been made, or is to be made, to him; and

(b) no other payment is made or is expected to be made to him.

Circumstances in which a person is to be treated as responsible or not responsible for another

9

(1) Subject to the following provisions of this regulation a person shall be treated as responsible for a child or young person who is normally living with him.

(2) Where there is a question as to which person a child or young person is normally living with, the child or young person shall be treated for the purposes of paragraph (1) as normally living with –

(a) the person who is receiving child benefit in respect of him or, if no-one is in that position, with whom he has been placed under Article 27(2) of the Children (Northern Ireland) Order 1995[^f00043]; or

(b) if there is no such person –

(i) where only one claim for child benefit has been made in respect of him, the person who made that claim, or

(ii) in any other case the person who has the primary responsibility for him.

(3) For the purposes of these Regulations any person other than the one treated as responsible for the child or young person under this regulation shall be treated as not so responsible.

Circumstances in which a person is to be treated as being or not being a member of the household

10

(1) Subject to paragraphs (2) to (5), a relevant person and any partner and, where the relevant person or his partner is treated as responsible by virtue of regulation 9 (circumstances in which a person is to be treated as responsible or not responsible for another) for a child or young person, that child or young person and any child of that child or young person, shall be treated as members of the same household notwithstanding that any of them is temporarily living away from the other members of his family.

(2) Paragraph (1) shall not apply to a person who is living away from the other members of his family where –

(a) that person does not intend to resume living with the other members of his family; or

(b) his absence from the other members of his family is likely to exceed 52 weeks, unless there are exceptional circumstances (for example where the person is in hospital or otherwise has no control over the length of his absence) and the absence is unlikely to be substantially more than 52 weeks.

(3) Subject to paragraph (4), a child or young person shall not be treated as a member of the relevant person’s household where he is –

(a) placed with the relevant person or his partner under a relevant enactment; or

(b) placed with the relevant person or his partner prior to adoption; or

(c) placed for adoption with the relevant person or his partner pursuant to a decision under the Adoption Agencies Regulations (Northern Ireland) 1989[^f00044].

(4) Paragraph (3) shall not apply in any case where a child or young person –

(a) has been placed with the relevant person or his partner by a Health and Social Services Board under Article 27(2)(a) of the Children (Northern Ireland) Order 1995, and

(b) in accordance with regulation 9(2)(a) is to be treated for the purposes of paragraph (1) of that regulation as normally living with the relevant person or his partner.

(5) Subject to paragraph (6), paragraph (1) shall not apply to a child or young person who is not living with the relevant person and he –

(a) is in the care of the Department of Health, Social Services and Public Safety under a relevant enactment; or

(b) has been placed with a person other than the relevant person prior to adoption; or

(6) A child or young person to whom paragraph (5)(a) applies shall be treated as being a member of the relevant person’s household in any period of 7 consecutive days commencing upon a Monday and ending on a Sunday where –

(a) that child or young person lives with the relevant person for part or all of that period, and

(b) it is reasonable to do so taking into account the nature and frequency of that child’s or young person’s visits.

(7) In this regulation “relevant enactment” means the Army Act 1955[^f00045], the Air Force Act 1955[^f00046], the Naval Discipline Act 1957[^f00047] and the Children (Northern Ireland) Order 1995[^f00048].

The applicable amount

11

(1) The applicable amount in respect of any one application shall be the aggregate of –

(a) the total of the weekly applicable amounts of all those persons who are relevant persons in the case of that application, and

(b) £53·79.

(2) For the purposes of paragraph (1), the weekly applicable amount –

(a) as regards a relevant person who is in receipt (and entitled to be in receipt) of income support or an income-based jobseeker’s allowance, is £1;

(b) as regards –

(i) a relevant person who is in receipt of guarantee credit; and

(ii) those relevant persons who are members of a married or unmarried couple (within the meaning of the State Pension Credit Act 2002), the other member of which is in receipt of guarantee credit,

is £1;

Financial resources

12

In respect of any one application, the amount which is to be taken to be the financial resources of the applicant or applicants shall be the total of the incomes of all those persons who are relevant persons in the case of that application, and the income of each relevant person shall be determined in accordance with regulation 19.

PART II — REDUCTION IN AMOUNT OF GRANT

Reduction in amount of grant

13

The amount of any grant which may be paid in respect of an application shall, if the financial resources of the applicant or applicants exceed the applicable amount, be reduced from what it would otherwise have been –

(a) where the application is accompanied by an owner-occupation certificate, by the aggregate of the amounts obtained by multiplying –

(i) by 19·97 that part of any such excess which is £47·95 or less,

(ii) by 39·94 that part of any such excess which is greater than £47·95 but not more than £95·90,

(iii) by 159·76 that part of any such excess which is greater than £95·90 but not more than £191·80, and

(iv) by 399.41 that part of any such excess which is greater than £191·80;

(b) where the application is accompanied by a tenant’s certificate, by the aggregate of the amounts obtained by multiplying –

(i) by 11·27 that part of any such excess which is £47·95 or less,

(ii) by 22·53 that part of any such excess which is greater than £47·95 but not more than £95·90,

(iii) by 90·13 that part of any such excess which is greater than £95·90 but not more than £191·80, and

(iv) by 225·32 that part of any such excess which is greater than £191·80.

Successive applications

14

(1) In this regulation “current application” means an application to which regulation 13 refers.

(2) The amount by which a grant in respect of a current application is reduced shall, except where paragraph (4) applies, be abated –

(a) in a case to which paragraph (3)(a) or (b) applies, by the amount by which any grant paid in respect of any application there referred to was itself reduced by virtue of regulation 13 and this regulation or regulations 11 and 12 of the Housing Renovation etc. Grants (Reduction of Grant) Regulations (Northern Ireland) 1997[^f00049] or regulations 10 and 11 of the Housing Renovation etc. Grants (Reduction of Grant) Regulations (Northern Ireland) 1992[^f00050];

(b) in a case to which paragraph (3)(c) or (d) applies, by the amount by which any grant paid in respect of any application there referred to was itself reduced, by virtue of Article 63(4) of the Order, by reference to persons (other than participating landlords) who are relevant persons in the current application;

(c) in a case to which paragraph (3)(e) applies, by the amount of any contribution notified under Article 97(1) of the Order to any person who is a relevant person in the current application.

(3) Subject to paragraph (4), this paragraph applies where –

(a) within the 10 years preceding the date of approval of the current application, at least one application, accompanied by an owner occupation certificate, relating to the same dwelling or building was made, in respect of which at least one of the relevant persons is a relevant person in the current application;

(b) within the 5 years preceding the date of approval of the current application, at least one application, accompanied by a tenant’s certificate, relating to the same dwelling or building was made, in respect of which at least one of the relevant persons is a relevant person in the current application;

(c) within the 10 years preceding the date of approval of the current application, at least one tenant’s common parts application relating to the same building was made, in respect of which at least one of the relevant persons in the current application was an occupying tenant in relation to a flat in the building by virtue of a tenancy granted or extended for a term of years of which not less than 5 years remain unexpired at the date of the application and was also an applicant;

(d) within the 5 years preceding the date of approval of the current application, at least one tenant’s common parts application relating to the same building was made, in respect of which at least one of the relevant persons in the current application was an occupying tenant in relation to a flat in the building by virtue of such an interest as is mentioned in Article 45(2) of the Order and was also an applicant; or

(e) within the 10 years preceding the date of approval of the current application, at least one of the relevant persons in the current application signified scheme consent under Article 95(1) of the Order in respect of at least one group repair scheme in relation to which the same dwelling, building or flat was, or was part of, a qualifying building.

(4) Paragraph (3) does not apply in any case where, by reason of reduction of grant referred to in paragraph (2)(a) or (b), no grant was paid in respect of the application, except where the eligible works in respect of which the application was approved were executed to a satisfactory standard.

PART III — APPLICABLE AMOUNTS

Applicable amounts

15

Subject to regulation 16 (polygamous marriages), the weekly applicable amount of a relevant person shall be the aggregate of such of the following amounts as may apply in his case –

(a) an amount in respect of himself or, if he is a member of a couple, an amount in respect of both of them, determined in accordance with paragraph (1), (2) or (3), as the case may be, in column 1 of the table in paragraph 1 of Schedule 1 (applicable amounts);

(b) an amount determined in accordance with paragraph 2 of Schedule 1 in respect of any child or young person who is a member of his family, except a child or young person whose capital, if determined in accordance with Chapter VI of Part IV (capital) in like manner as for the relevant person, except as provided in regulation 33(5) (modification in respect of child and young person) would exceed £6,000;

(c) if he is a member of a family of which at least one member is a child or young person, an amount specified in Part II of Schedule 1 (family premium);

(d) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 1 (premiums).

Polygamous marriages

16

Where a relevant person is a member of a polygamous marriage, his weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case –

(a) the highest amount applicable to him and one of his partners determined in accordance with paragraph (3) in column 1 of the table in paragraph 1 of Schedule 1 as if he and that partner were a couple;

(b) an amount equal to the difference between the amounts specified in paragraphs (3)(b) and (1)(b) in column 1 of the table in paragraph 1 of Schedule 1 in respect of each of his other partners;

(c) an amount determined in accordance with paragraph 2 of Schedule 1 in respect of any child or young person for whom he or a partner of his is responsible and who is a member of the same household, except a child or young person whose capital, if determined in accordance with Chapter VI of Part IV (capital) in like manner as for the relevant person, except as provided in regulation 33(5) (modifications in respect of child and young person) would exceed £6,000;

(d) if he or another partner of the polygamous marriage is responsible for a child or young person who is a member of the same household, the amount specified in Part II of Schedule 1 (family premium);

(e) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 1 (premiums).

PART IV — INCOME AND CAPITAL

CHAPTER I — general

Income and capital of relevant person

17

Where a relevant person is a member of a family, the income and capital of any member of that family shall, except where otherwise provided, be treated as the income and capital of that person.

Determination of income and capital of members of relevant person’s family and of a polygamous marriage

18

(1) The income and capital of a relevant person’s partner and, subject to paragraph (2) and to regulation 33 (modifications in respect of child and young person), the income of a child or young person which by virtue of regulation 17 is to be treated as income and capital of the relevant person shall be determined in accordance with the following provisions of this Part in like manner as for the relevant person; and any reference to the relevant person shall be construed for the purposes of this Part as if it were a reference to his partner or that child or young person.

(2) Regulations 26(2) and 28(2), so far as they relate to paragraphs 1 to 12 of Schedule 2 (sums to be disregarded in the determination of earnings), shall not apply to a child or young person.

(3) Where a relevant person or the partner of that person is married polygamously to two or more members of his household –

(a) the relevant person shall be treated as possessing capital and income belonging to each such member and the income of any child or young person who is one of that member’s family; and

(b) the income and capital of that member or, as the case may be, the income of that child or young person shall be determined in accordance with the following provisions of this Part in like manner as for the relevant person or, as the case may be, as for any child or young person who is a member of his family.

CHAPTER II — income

Determination of income on a weekly basis

19

(1) The income of a relevant person shall be determined on a weekly basis by aggregating –

(a) his average weekly earnings from employment as an employed earner, determined in accordance with this Chapter and Chapter III,

(b) his average weekly earnings from employment as a self-employed earner, determined in accordance with this Chapter and Chapter IV,

(d) the weekly tariff income determined under regulation 41 (determination of tariff income from capital), and

by then deducting the average weekly relevant child care charge, determined in accordance with regulation 20 (treatment of child care charges) from the aggregated weekly income or, in a case where the conditions in paragraph (2) are met, from the aggregated weekly income plus whichever credit specified in sub-paragraph (b) of that paragraph is appropriate, up to a maximum deduction in respect of the relevant person’s family of whichever of the sums specified in paragraph (3) applies in his case.

(2) The conditions of this paragraph are that –

(a) the relevant person’s average weekly earnings as mentioned in sub-paragraph (a) or (b) of paragraph (1) are less than the lower of either of his relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies in his case; and

(b) the relevant person or, if he is a member of a couple either the relevant person or his partner, is in receipt of either child tax credit or working tax credit.

(3) The maximum deduction for the purposes of paragraph (1) is –

(a) where the relevant person’s family includes only one child in respect of whom relevant child care charges are paid, £94·50 per week; and

(b) where the relevant person’s family includes more than one child in respect of whom relevant child care charges are paid, £140 per week.

(4) For the purposes of paragraph (1) “income” includes income to which regulations 31 (capital treated as income), 32 (notional income), 44 (determination of grant income) and 47 (treatment of student loans) refer.

Treatment of child care charges

20

(1) This regulation applies where a relevant person has incurred relevant child care charges and –

(a) is a lone parent and is engaged in remunerative work;

(b) is a member of a couple both of whom are engaged in remunerative work; or

(2) Relevant child care charges shall be determined over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to care.

(3) For the purposes of paragraph (1)(c) the other member of a couple is incapacitated where –

(a) the relevant person’s applicable amount includes –

(i) disability premium; or

(ii) a higher pensioner premium by virtue of the satisfaction of paragraph 9(2)(b) of Schedule 1;

on account of the other member’s incapacity;

(b) the relevant person’s applicable amount would include a disability premium or a higher pensioner premium on account of the other member’s incapacity, but for that other member being treated as capable of work by virtue of a determination made in accordance with regulations[^f00051] made under section 167E of the 1992 Act[^f00052] (incapacity for work: disqualification, etc);

(c) the relevant person (within the meaning of regulation 6) is or is treated as incapable of work, and has been so incapable or has been so treated as incapable of work in accordance with the provisions of, and regulations made under, Part XIIA of the 1992 Act (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days shall be treated as one continuous period;

(d) there is payable in respect of him one or more of the following –

(i) short-term incapacity benefit at the higher rate or long-term incapacity benefit under paragraphs 2 and 2A of Part 1 of Schedule 4 to the 1992 Act[^f00053] (rates of benefits, etc.);

(ii) attendance allowance under section 64[^f00054] of that Act (entitlement to an attendance allowance);

(iii) severe disablement allowance under section 68 of that Act[^f00055] (severe disablement allowance: entitlement and rate);

(iv) disability living allowance under section 71[^f00056] of that Act (disability living allowance);

(v) increase of disablement pension under section 104 of that Act (increase where constant attendance needed);

(vi) a pension increase under a war pension scheme or an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv) or (v);

(e) a pension or allowance to which head (ii), (iv), (v) or (vi) of subparagraph (d) refers was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient within the meaning of regulation 18(2) of the Housing Benefit (General) Regulations (Northern Ireland) 1987[^f00057] (patients);

(f) sub-paragraph (d) or (e) would apply to him if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding statutory provision having effect in Great Britain[^f00058]; or

(g) he has an invalid carriage or other vehicle provided to him under Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972[^f00059] (provision of vehicles for persons suffering from physical defect or disability) or provided by the Secretary of State under section 5(2)(a) of and Schedule 2 to the National Health Service Act 1977[^f00060] (provision of vehicles for those suffering disability) or under section 46 of the National Health Service (Scotland) Act 1978[^f00061] (provision of vehicles for persons suffering from physical defect or disability).

(4) In this regulation –

“relevant child care charges” are those charges for care to which paragraphs (5) and (6) apply, and shall be calculated on a weekly basis in accordance with paragraph (2).

(5) This paragraph applies to charges paid by the relevant person for care which is provided –

(a) in the case of any child of the relevant person’s family who is not disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s fifteenth birthday;

(b) in the case of any child of the relevant person’s family who is disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s sixteenth birthday.

(6) This paragraph applies to charges paid for care which is provided in accordance with paragraph (7) but not paid –

(a) in respect of the child’s compulsory education; or

(b) by a relevant person to a partner or by a partner to a relevant person in respect of any child for whom either of any of them is responsible in accordance with regulation 9 (circumstances in which a person is to be treated as responsible or not responsible for another).

(7) The care to which paragraph (6) refers may be provided –

(a) by persons registered under Article 118 of the Children (Northern Ireland) Order 1995[^f00062] (registration of childminders and persons providing day care);

(b) out of school hours, by a school on school premises or by an education and library board or a Health and Social Services trust –

(i) for children who are not disabled in respect of the period beginning on, and including, their twelfth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday, or

(ii) for children who are disabled in respect of the period beginning on, and including, their twelfth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

(c) by a child care scheme operating on Crown property where registration under Article 118 of the Children (Northern Ireland) Order 1995 is not required;

(d) in schools or establishments to which Article 118 of the Children (Northern Ireland) Order 1995 does not apply by virtue of Article 121(1) to (3) of that Order; or

(e) by a child care provider approved by an organisation accredited by the Secretary of State under the scheme established by the Tax Credit (New Category of Child Care Provider) Regulations 2002[^f00063].

(8) For the purposes of paragraphs (5) to (7) –

(a) a person shall be treated as a child in respect of the period commencing on his sixteenth birthday and ending on the day preceding the first Monday in September following his sixteenth birthday; and

(b) a child is disabled if he is a child –

(i) in respect of whom disability living allowance is payable, or has ceased to be payable solely because he is a patient;

(ii) who is identified as blind in pursuance of arrangements under section 1(1) of the Chronically Sick and Disabled Persons (Northern Ireland) Act 1978[^f00064];

(iii) who ceased to be identified as blind under such arrangements within the 28 weeks immediately preceding the date of claim.

(9) For the purposes of paragraph (1) a person on parental leave shall be treated as if engaged in remunerative work for the period specified in sub-paragraph (b) (“the relevant period”) provided that –

(a) in the week before the period of leave began the person was in remunerative work;

(b) the relevant person incurred relevant child care charges in that week; and

(10) For the purposes of paragraph (9) the relevant period shall begin on the day on which the person’s parental leave commences and shall end on –

(a) the date that leave ends;

(b) if no tax credit is in payment on the date that entitlement to parental support ends, the date that entitlement ends; or

(c) if a tax credit is in payment on the date that entitlement to parental support ends, the date that entitlement to that award of tax credit ends,

whichever shall occur first.

(11) In paragraphs (9) and (10) –

(a) “parental support” means –

(i) statutory maternity pay under section 160 of the 1992 Act;

(ii) statutory paternity pay under section 167ZA or section 167ZB[^f00065] of that Act;

(iii) statutory adoption pay under section 167ZL[^f00066] of that Act;

(iv) maternity allowance under section 35 of that Act, and

(v) income support to which that person is entitled by virtue of paragraph 14B of Schedule 1B to the Income Support (General) Regulations (Northern Ireland) 1987[^f00067]; and

(b) “tax credit” means –

(i) working tax credit; and

(ii) child tax credit.

(12) Where paragraph (9) applies to a person on parental leave any child care charges in respect of the child to whom the parental leave relates shall not be treated as relevant child care charges for the purposes of this regulation and regulation 19.

Average weekly earnings of employed earners

21

Where the income of a relevant person consists of or includes earnings from employment as an employed earner, his average weekly earnings from such employment shall be determined by reference to his earnings from such employment over the period of 52 weeks immediately preceding the application or, where his earnings fluctuate, over such other lesser period immediately preceding the application as may enable his average weekly earnings to be determined more accurately.

Average weekly earnings of self-employed earners

22

Where the income of a relevant person consists of or includes earnings from employment as a self-employed earner, his average weekly earnings from such employment shall be determined by reference to his earnings from such employment, over the period of 52 weeks immediately preceding the application or, where his earnings from such employment fluctuate, over such other lesser period immediately preceding the application as may enable his average weekly earnings to be determined more accurately.

Average weekly income other than earnings

23

Any part of a relevant person’s income which does not consist of earnings shall be determined by reference to such income over the period of 52 weeks immediately preceding the application or, where such income fluctuates, over such lesser period immediately preceding the application as may enable his average weekly income to be determined more accurately.

Determination of weekly income

24

(1) For the purposes of regulations 21 (average weekly earnings of employed earners) and 23 (average weekly income other than earnings) where the period in respect of which a payment is made –

(a) does not exceed a week, the weekly amount shall be the amount of that payment;

(b) exceeds a week, the weekly amount shall be determined –

(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

(ii) in any other case, by dividing the amount of the payment by the number equal to the number of days in the period to which it relates and multiplying the quotient by 7.

(2) For the purposes of regulation 22 (average weekly earnings of self employed earners) the weekly amount shall be determined by dividing the relevant person’s earnings during the assessment period by the number equal to the number of days in the assessment period and multiplying the quotient by 7.

CHAPTER III — employed earners

Earnings of employed earners

25

(1) Subject to paragraph (2), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes –

(a) any bonus or commission;

(b) any payment in lieu of remuneration except any periodic sum paid to a relevant person on account of the termination of his employment by reason of redundancy;

(c) any payment in lieu of notice or any lump sum payment intended as compensation for the loss of employment but only insofar as it represents loss of income;

(d) any holiday pay except any payable more than 4 weeks after termination or interruption of the employment;

(e) any payment by way of a retainer;

(f) any payment made by the relevant person’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the employer in respect of –

(i) travelling expenses incurred by the relevant person between his home and place of employment,

(ii) expenses incurred by the relevant person under arrangements made for the care of a member of his family owing to the relevant person’s absence from home;

(g) any award of compensation made under Article 146(4) or 151(1) of the Employment Rights (Northern Ireland) Order 1996[^f00068] (remedies and compensation for unfair dismissal);

(h) any such sum as is referred to in section 112(3) of the 1992 Act (certain sums to be earnings for social security purposes);

(i) any statutory sick pay under Part XI of the 1992 Act or statutory maternity pay under Part XII of that Act or a corresponding payment under any statute of the Parliament of the United Kingdom extending solely to Great Britain;

(j) any payment made under the legislation of, or under any scheme operating in, the Republic of Ireland which is analogous to income to which sub-paragraphs (g) to (i) relate;

(k) any remuneration paid by or on behalf of an employer to the relevant person who for the time being is on parental leave or is absent from work because he is ill.

(l) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with regulation 18(22) to (25) of the Social Security (Contributions) Regulations (Northern Ireland) 1979[^f00069];

(m) any amount, where a relevant person qualifies for the national minimum wage under section 1 of the National Minimum Wage Act 1998[^f00070], which under section 17 of that Act that person shall be taken to be entitled to be paid under his contract as additional remuneration in respect of any pay reference period falling within the 52 weeks immediately preceding the application.

(2) Earnings shall not include –

(a) subject to paragraph (3), any payment in kind;

(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(3) Paragraph 2(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(l).

(4) In this regulation, “any pay reference period” means the period prescribed by the Secretary of State in regulations made under section 1(4) of the National Minimum Wage Act 1998.

Determination of net earnings of employed earners

26

(1) For the purposes of regulation 21 (average weekly earnings of employed earners), the earnings of a relevant person derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings as determined under paragraph (3).

(2) There shall be disregarded from a relevant person’s net earnings, any sum, where applicable, specified in any of paragraphs 1 to 16 or 18 of Schedule 2.

(3) For the purposes of paragraph (1) net earnings shall be determined by taking into account the gross earnings of the relevant person from that employment over the assessment period, less –

(a) any amount deducted from those earnings by way of –

(i) income tax,

(ii) primary Class 1 contributions under the 1992 Act;

(b) one-half of any sum paid by the relevant person by way of a contribution towards an occupational pension scheme;

(c) one-half of the amount calculated in accordance with paragraph (4) in respect of any qualifying contribution payable by the relevant person; and

(d) where those earnings include a payment which is payable under any statutory provision having effect in Great Britain and which corresponds to statutory sick pay or statutory maternity pay, any amount deducted from those earnings by way of any contributions which are payable under any statutory provision having effect in Great Britain and which correspond to primary Class 1 contributions under the 1992 Act.

(4) The amount in respect of any qualifying contribution shall be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying contribution shall be determined –

(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;

(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(5) Where the relevant person is an employed earner in the Republic of Ireland the amounts to be deducted for income tax and primary Class 1 contributions under this regulation shall be such amounts as would have been deducted had the relevant person been employed in Northern Ireland.

(6) In this regulation “qualifying contribution” means any sum which is payable periodically as a contribution towards a personal pension scheme.

CHAPTER IV — self-employed earners

Earnings of self-employed earners

27

(1) Subject to paragraph (2), “earnings”, in the case of employment as a self-employed earner, means the gross income of the employment and shall include any allowance payable pursuant to provision or arrangements made by the Department of Employment and Learning[^f00071] under section 1(1) of the Employment and Training Act (Northern Ireland) 1950[^f00072] or any equivalent allowance payable under Republic of Ireland legislation to the relevant person for the purpose of assisting him in carrying on his business, unless at the date of the application the allowance has been terminated.

(2) “Earnings” shall not include any payment to which paragraph 24 or 25 of Schedule 3 refers (payments in respect of a person accommodated with the relevant person under arrangements made by a Health and Social Services Board, Health and Social Services trust, training school or voluntary organisation and payments made to the relevant person by a Health and Social Services Board, Health and Social Services trust or voluntary organisation in respect of persons temporarily in the relevant person’s care) and also shall not include any sports award.

Determination of net profit of self-employed earners

28

(1) For the purposes of regulation 22 (average weekly earnings of self-employed earners) the earnings of a relevant person to be taken into account shall be –

(a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;

(b) in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations (Northern Ireland) 1975[^f00073], his share of the net profit derived from that employment, less –

(i) an amount in respect of income tax and of social security contributions payable under the 1992 Act determined in accordance with regulation 29 (deduction of tax and contributions for self-employed earners), and

(ii) one half of the amount calculated in accordance with paragraph (12) in respect of any qualifying premium.

(2) There shall be disregarded from a relevant person’s net profit, any sum, where applicable, specified in any of paragraphs 1 to 16 or 18 of Schedule 2.

(3) For the purposes of paragraph (1)(a) the net profit of the employment shall, except where paragraph (9) applies, be determined by taking into account the earnings of the employment over the assessment period less –

(a) subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;

(b) an amount in respect of –

(i) income tax, and

(ii) social security contributions payable under the 1992 Act, determined in accordance with regulation 29 (deduction of tax and contributions for self-employed earners); and

(4) For the purposes of paragraph (1)(b) the net profit of the employment shall be determined by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

(5) Subject to paragraph (6), no deduction shall be made under paragraph (3)(a) or (4), in respect of –

(a) any capital expenditure;

(b) any depreciation of any capital asset;

(d) any loss incurred before the beginning of the assessment period;

(e) the repayment of capital on any loan taken out for the purposes of the employment;

(f) any expenses incurred in providing business entertainment; and

(g) any debts, except bad debts proved to be such, but this sub-paragraph shall not apply to any expenses incurred in the recovery of a debt.

(6) A deduction shall be made under paragraph (3)(a) or (4) in respect of the repayment of capital on any loan used for –

(a) the replacement in the course of business of equipment or machinery; and

(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

(7) No deduction shall be made in respect of any expenses under paragraph (3)(a) or (4) where, given the nature and the amount of the expense, it has been unreasonably incurred.

(8) For avoidance of doubt –

(a) a deduction shall not be made under paragraph (3)(a) or (4) in respect of any sum

unless it has been expended for the purposes of the business;

(b) a deduction shall be made thereunder in respect of –

(i) the excess of any value added tax paid by the relevant person in respect of taxable supplies made to him, over any such tax received by him in respect of taxable supplies made by him, calculated with reference to the assessment period;

(ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

(iii) any payment of interest on a loan taken out for the purposes of the employment.

(9) Where a relevant person is engaged in employment as a child minder the net profit of the employment shall be one-third of the earnings of that employment, less –

(a) an amount in respect of –

(i) income tax, and

(ii) social security contributions payable under the 1992 Act, determined in accordance with regulation 29 (deduction of tax and contributions for self-employed earners); and

(b) one half of the amount calculated in accordance with paragraph (12) in respect of any qualifying premium.

(10) For the avoidance of doubt, where a relevant person is engaged in employment as a self-employed earner and he is also engaged in one or more other employments as a self-employed earner or employed earner any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

(11) In this regulation –

“qualifying premium” means any premium which at the date of application is payable periodically in respect of a retirement annuity contract or a personal pension scheme;

(12) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying premium shall be determined –

(a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;

(b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

(13) Where the relevant person is a self-employed earner in the Republic of Ireland the amounts to be deducted for income tax and contributions under this regulation shall be such amounts as, in the opinion of the Executive, would have been deducted had the relevant person been employed in Northern Ireland.

Deduction of tax and contributions for self-employed earners

29

(1) The amount to be deducted in respect of income tax under regulation 28(1)(b)(i), (3)(b)(i) or (9)(a)(i) (determination of net profit of self-employed earners) shall be determined on the basis of the amount of chargeable income and as if that income were assessable to income tax at the lower rate or, as the case may be, the lower rate and the basic rate or the basic rate and higher rate of tax in the year of assessment in which the application was made less only the personal relief to which the relevant person is entitled under sections 257(1), (6) and (7) and 259 (1)(a) and (2) of the Income and Corporation Taxes Act 1988[^f00074] (personal reliefs) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the lower rate and, if appropriate, the basic rate and higher rate of tax is to be applied and the amount of the personal relief deductible under this paragraph shall be calculated on a pro-rata basis.

(2) The amount to be deducted in respect of social security contributions under regulation 28(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) shall be the total of –

(a) the amount of Class 2 contributions payable under section 11(1) or, as the case may be, (3) of the 1992 Act at the rate applicable at the date of application except where the relevant person’s chargeable income is less than the amount for the time being specified in subsection (4) of that section (small earnings exception) for the tax year in which the date of the application falls; but if the assessment period is less than a year, the amount specified for that tax year shall be reduced pro rata; and

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