Child Support, Pensions and Social Security Act 2000

(5A) Regulations under this paragraph may, in relation to any penalty imposed by such regulations, make provision applying (with or without modifications) any enactment applying for the purposes of income tax that is contained in Part X of the Taxes Management Act 1970 (penalties).

• (5) After that paragraph there shall be inserted—

(7BA) The Inland Revenue may by regulations provide for amounts in respect of contributions or interest that fall to be paid or repaid in accordance with any regulations under this Schedule to be set off, or to be capable of being set off, in prescribed circumstances and to the prescribed extent, against any such liabilities under regulations under this Schedule of the person entitled to the payment or repayment as may be prescribed.

• (6) In section 8(1) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (decisions to be made by an Inland Revenue officer and appealable under section 11)—

• (a) paragraph (j) (interest under regulations made by virtue of paragraph 7B(2)(e) of Schedule 1 to the Social Security Contributions and Benefits Act 1992) shall cease to have effect; and

• (b) in paragraph (l), for “paragraphs (j) and (k)” there shall be substituted “paragraph (k)”, and the words “amount of interest or” shall be omitted.

• (7) Subsection (6) has effect in relation to interest accruing on sums becoming due in respect of the tax year beginning with 6th April 2000 or any subsequent tax year.

Liability of earner for secondary contributions: Great Britain

77

• (1) In paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (prohibition on deduction or recovery of Class 1 contributions), sub-paragraph (2) shall be omitted.

• (2) After that paragraph there shall be inserted—

(3A) (1) Subject to sub-paragraph (2) below, a person who is or has been liable to pay any secondary Class 1 or any Class 1A or Class 1B contributions shall not— (a) make, from earnings paid by him, any deduction in respect of any such contributions for which he or any other person is or has been liable; (b) otherwise recover any such contributions (directly or indirectly) from any person who is or has been a relevant earner; or (c) enter into any agreement with any person for the making of any such deduction or otherwise for the purpose of so recovering any such contributions. (2) Sub-paragraph (1) above does not apply to the extent that an agreement between— (a) a secondary contributor, and (b) any person (“the earner”) in relation to whom the secondary contributor is, was or will be such a contributor in respect of the contributions to which the agreement relates, allows the secondary contributor to recover (whether by deduction or otherwise) the whole or any part of any secondary Class 1 contribution payable in respect of a gain that is treated as remuneration derived from that earner’s employment by virtue of section 4(4)(a) above. (3) Sub-paragraph (2) above does not authorise any recovery (whether by deduction or otherwise)— (a) in pursuance of any agreement entered into before 19th May 2000; or (b) in respect of any liability to a contribution arising before the day of the passing of the Child Support, Pensions and Social Security Act 2000. (4) In this paragraph— - “agreement” includes any arrangement or understanding (whether or not legally enforceable); and - “relevant earner”, in relation to a person who is or has been liable to pay any contributions, means an earner in respect of whom he is or has been so liable. 3B.—(1) This paragraph applies where— (a) an election is jointly made by— (i) a secondary contributor, and (ii) a person (“the earner”) in relation to whom the secondary contributor is or will be such a contributor in respect of contributions on share option gains by the earner, for the whole or a part of any liability of the secondary contributor to contributions on any such gains to be transferred to the earner; and (b) the election is one in respect of which the Inland Revenue have, before it was made, given by notice to the secondary contributor their approval to both— (i) the form of the election; and (ii) the arrangements made in relation to the proposed election for securing that the liability transferred by the election will be met. (2) Any liability which— (a) arises while the election is in force, and (b) is a liability to pay the contributions on share option gains by the earner, or the part of them, to which the election relates, shall be treated for the purposes of this Act, the Administration Act and Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 as a liability falling on the earner, instead of on the secondary contributor. (3) Subject to sub-paragraph (7)(b) below, an election made for the purposes of sub-paragraph (1) above shall continue in force from the time when it is made until whichever of the following first occurs, namely— (a) it ceases to have effect in accordance with its terms; (b) it is revoked jointly by both parties to the election; (c) notice is given to the earner by the secondary contributor terminating the effect of the election. (4) An approval given to the secondary contributor for the purposes of sub-paragraph (1)(b) above may be given either— (a) for an election to be made by the secondary contributor and a particular person; or (b) for all elections to be made, or to be made in particular circumstances, by the secondary contributor and particular persons or by the secondary contributor and persons of a particular description. (5) The grounds on which the Inland Revenue shall be entitled to refuse an approval for the purposes of sub-paragraph (1)(b) above shall include each of the following— (a) that it appears to the Inland Revenue that adequate arrangements have not been made for securing that the liabilities transferred by the proposed election or elections will be met by the person or persons to whom they would be so transferred; and (b) that it appears to the Inland Revenue that they do not have sufficient information to determine whether or not grounds falling within paragraph (a) above exist. (6) If, at any time after they have given an approval for the purposes of sub-paragraph (1)(b) above, it appears to the Inland Revenue— (a) that the arrangements that were made or are in force for securing that liabilities transferred by elections to which the approval relates are met are proving inadequate or unsatisfactory in any respect, or (b) that any election to which the approval relates has resulted, or is likely to result, in the avoidance or non-payment of the whole or any part of any secondary Class 1 contributions, the Inland Revenue may withdraw the approval by notice to the secondary contributor. (7) The withdrawal by the Inland Revenue of any approval given for the purposes of sub-paragraph (1)(b) above— (a) may be either general or confined to a particular election or to particular elections; and (b) shall have the effect that the election to which the withdrawal relates has no effect on contributions on share option gains in respect of any right to acquire shares obtained after— (i) the date on which notice of the withdrawal of the approval is given; or (ii) such later date as the Inland Revenue may specify in that notice. (8) Where the Inland Revenue have refused or withdrawn their approval for the purposes of sub-paragraph (1)(b) above, the person who applied for it or, as the case may be, to whom it was given may appeal to the Special Commissioners against the Inland Revenue’s decision. (9) On an appeal under sub-paragraph (8) above the Special Commissioners may— (a) dismiss the appeal; (b) remit the decision appealed against to the Inland Revenue with a direction to make such decision as the Special Commissioners think fit; or (c) in the case of a decision to withdraw an approval, quash that decision and direct that that decision is to be treated as never having been made. (10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of gains realised before it was made. (11) Regulations made by the Inland Revenue may make provision with respect to the making of elections for the purposes of this paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, in particular— (a) prescribe the matters that must be contained in such an election; (b) provide for the manner in which such an election is to be capable of being made and of being confined to particular liabilities or the part of particular liabilities; and (c) provide for the making of applications for such approvals and for the manner in which those applications are to be dealt with. (12) Where— (a) an election is made under this paragraph before the end of the period of three months beginning with the date of the passing of the Child Support, Pensions and Social Security Act 2000, and (b) that election is expressed to relate to liabilities for contributions arising on or after 19th May 2000 and before the making of the election, this paragraph shall have effect in relation to those liabilities as if sub-paragraph (2) above provided for them to be deemed to have fallen on the earner (instead of on the secondary contributor); and the secondary contributor shall accordingly be entitled to reimbursement from the earner for any payment made by that contributor in or towards the discharge of any of those liabilities. (13) In this paragraph references to contributions on share option gains by the earner are references to any secondary Class 1 contributions payable in respect of a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above. (14) In this paragraph “the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts.

• (3) In section 6(4) of that Act (persons by whom Class 1 contributions are payable), for the words from “paragraph 3” onwards there shall be substituted “paragraphs 3 to 3B of Schedule 1 to this Act.”

• (4) In paragraph 8(1) of Schedule 1 to that Act (general regulations), after paragraph (c) there shall be inserted—

(ca) for requiring a secondary contributor to notify a person to whom any of his liabilities are transferred by an election under paragraph 3B above of— (i) any transferred liability that arises; (ii) the amount of any transferred liability that arises; and (iii) the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to that election;

.

• (5) In section 8(1) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (decisions to be taken by officers of the Inland Revenue), after paragraph (i) there shall be inserted—

(ia) to decide whether to give or withdraw an approval for the purposes of paragraph 3B(1)(b) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;

.

• (6) In section 10 of that Act of 1999 (regulations about varying or superseding decisions), at the beginning of subsection (1) there shall be inserted “Subject to subsection (2A) below,”, and after subsection (2) there shall be inserted—

(2A) The decisions in relation to which provision may be made by regulations under this section shall not include decisions falling within section 8(1)(ia) above.

• (7) In section 12(4) of that Act of 1999 (appeals to be heard by General Commissioners), after “Subject to” there shall be inserted “paragraph 3B(8) of Schedule 1 to theSocial Security Contributions and Benefits Act 1992 (which provides for appeals under that paragraph to be heard by the Special Commissioners), to”.

Northern Ireland

Contributions in respect of benefits in kind: Northern Ireland

78

• (1) In section 1(2)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 1A contributions), the words “in respect of cars made available for private use and car fuel” shall be omitted.

• (2) For section 10 of that Act (Class 1A contributions) there shall be substituted—

(10) (1) Where— (a) for any tax year an earner is chargeable to income tax under Schedule E on an amount which for the purposes of the Income Tax Acts is or falls to be treated as an emolument received by him from any employment (“the relevant employment”), (b) the relevant employment is both employed earner’s employment and employment to which Chapter II of Part V of the 1988 Act (employment as a director or with annual emoluments of more than £8,500) applies, and (c) the whole or a part of the emolument falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner, a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the emolument as falls to be so left out of account. (2) Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by— (a) the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or (b) if paragraph (a) above does not apply, the person who, if the emolument in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution. (3) In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment. (4) The amount of the Class 1A contribution in respect of any emolument shall be the Class 1A percentage of so much of it as falls to be left out of account as mentioned in subsection (1)(c) above. (5) In subsection (4) above “the Class 1A percentage” means a percentage rate equal to the percentage rate specified as the secondary percentage in section 9(2) above for the tax year in question. (6) No Class 1A contribution shall be payable for any tax year in respect of so much of any emolument as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement. (7) For the purposes of this section— (a) the amounts which for the purposes of the Income Tax Acts are or fall to be treated as emoluments received by an earner from any employment shall be determined (subject to paragraph (b) below) disregarding sections 198, 201, 201AA and 332(3) of the 1988 Act (deductions for expenses etc.); but (b) where an amount which is deductible in respect of any matter under any of those sections is at least equal to the whole of any corresponding amount which (but for this paragraph) would fall by reference to that matter to be included in those emoluments, the whole of the corresponding amount shall be treated as not so included. (8) The Treasury may by regulations— (a) modify the effect of subsection (7) above by adding any enactment contained in the Income Tax Acts to the list of sections of the 1988 Act contained in paragraph (a) of that subsection; or (b) make such amendments of subsection (7) above as appear to them to be necessary or expedient in consequence of any alteration of the provisions of the Income Tax Acts relating to the charge to tax under Schedule E. (9) The Treasury may by regulations provide— (a) for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or emoluments; (b) for reducing Class 1A contributions in prescribed circumstances. (10) In this section “the 1988 Act” means the Income and Corporation Taxes Act 1988.

• (3) For subsection (6) of section 4 of that Act (power to treat emoluments in respect of share acquisitions etc. as earnings) there shall be substituted—

(6) Regulations may make provision for the purposes of this Part— (a) for treating any amount on which an employed earner is chargeable to income tax under Schedule E as remuneration derived from the earner’s employment; and (b) for treating any amount which in accordance with regulations under paragraph (a) above constitutes remuneration as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of his employment.

• (4) In paragraph 5(b) of Schedule 1 to that Act (power to modify section 10 for cases where a car is made available by reason of more than one employment), for “a car is made available” there shall be substituted “something is provided or made available”.

• (5) In paragraph 8(1)(ia) of that Schedule (power to provide by regulations for repayment in prescribed cases of the whole or a part of a Class 1B contribution), after “part” there shall be inserted “of a Class 1A or”.

• (6) In section 114(4) of the Social Security Administration (Northern Ireland) Act 1992 (proof of previous offences relating to Class 1A contributions), for “car” there shall be substituted “amount”.

• (7) In section 142(5)(c) of that Act (appropriate health service allocation of Class 1A contributions), for “cash equivalents of the benefits of the cars and car fuel” there shall be substituted “emoluments”.

• (8) This section shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.

• (9) Regulations made by statutory instrument under any power conferred by virtue of this section may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).

Third party providers of benefits in kind: Northern Ireland

79

• (1) After section 10 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 there shall be inserted—

(10ZA) (1) This section applies, where— (a) a Class 1A contribution is payable for any tax year in respect of the whole or any part of an emolument received by an earner; (b) the emolument, in so far as it is one in respect of which such a contribution is payable, consists in a benefit provided for the earner or a member of his family or household; (c) the person providing the benefit is a person other than the person (“the relevant employer”) by whom, but for this section, the Class 1A contribution would be payable in accordance with section 10(2) above; and (d) the provision of the benefit by that other person has not been arranged or facilitated by the relevant employer. (2) For the purposes of this Act if— (a) the person providing the benefit pays an amount for the purpose of discharging any liability of the earner to income tax for any tax year, and (b) the income tax in question is tax chargeable in respect of the provision of the benefit or of the making of the payment itself, the amount of the payment shall be treated as if it were an emolument consisting in the provision of a benefit to the earner in that tax year and falling, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner. (3) Subject to subsection (4) below, the liability to pay any Class 1A contribution in respect of— (a) the benefit provided to the earner, and (b) any further benefit treated as so provided in accordance with subsection (2) above, shall fall on the person providing the benefit, instead of on the relevant employer. (4) Subsection (3) above applies in the case of a Class 1A contribution for the tax year beginning with 6th April 2000 only if the person providing the benefit in question gives notice in writing to the Inland Revenue on or before 6th July 2001 that he is a person who provides benefits in respect of which a liability to Class 1A contributions is capable of falling by virtue of this section on a person other than the relevant employer. (5) The Treasury may by regulations make provision specifying the circumstances in which a person is or is not to be treated for the purposes of this Act as having arranged or facilitated the provision of any benefit. (6) In this section references to a member of a person’s family or household shall be construed in accordance with section 168(4) of the Income and Corporation Taxes Act 1988. (10ZB) (1) In section 10ZA above references to the provision of a benefit include references to the provision of a non-cash voucher. (2) Where— (a) a non-cash voucher is received by any person from employment to which Chapter II of Part V of the Income and Corporation Taxes Act 1988 does not apply, and (b) the case would be one in which the conditions in section 10ZA(1)(a) to (d) above would be satisfied in relation to the provision of that voucher if that Chapter did apply to that employment, sections 10 and 10ZA above shall have effect in relation to the provision of that voucher, and to any such payment in respect of the provision of that voucher as is mentioned in section 10ZA(2) above, as if that employment were employment to which that Chapter applied. (3) In this section “non-cash voucher” has the same meaning as in section 141 of the Income and Corporation Taxes Act 1988.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Subsection (1) shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.

• (4) Regulations made by virtue of this section under section 10ZA(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).

80

• (1) Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (supplementary provisions relating to contributions) shall be amended in accordance with subsections (2) to (5).

• (2) In paragraph 7(2)(b) (application of sections 100 to 100D and 102 to 104 of the Taxes Management Act 1970 in relation to certain penalties), for “104” there shall be substituted “105”.

• (3) For sub-paragraph (2)(e) of paragraph 7B (power to provide for interest to be charged on late payment in the case of payment outside the PAYE system) there shall be substituted—

(e) require interest to be paid on contributions that are not paid by the due date, and provide for determining the date from which such interest is to be calculated;

.

• (4) After sub-paragraph (5) of that paragraph there shall be inserted—

(5A) Regulations under this paragraph may, in relation to any penalty imposed by such regulations, make provision applying (with or without modifications) any enactment applying for the purposes of income tax that is contained in Part X of the Taxes Management Act 1970 (penalties).

• (5) After that paragraph there shall be inserted—

(7BA) The Inland Revenue may by regulations provide for amounts in respect of contributions or interest that fall to be paid or repaid in accordance with any regulations under this Schedule to be set off, or to be capable of being set off, in prescribed circumstances and to the prescribed extent, against any such liabilities under regulations under this Schedule of the person entitled to the payment or repayment as may be prescribed.

• (6) In Article 7(1) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (decisions to be made by an Inland Revenue officer and appealable under Article 10)—

• (a) sub-paragraph (j) (interest under regulations made by virtue of paragraph 7B(2)(e) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992) shall cease to have effect; and

• (b) in sub-paragraph (l), for “sub-paragraphs (j) and (k)” there shall be substituted “sub-paragraph (k)”, and the words “amount of interest or” shall be omitted.

• (7) Subsection (6) has effect in relation to interest accruing on sums becoming due in respect of the tax year beginning with 6th April 2000 or any subsequent tax year.

Liability of earner for secondary contributions: Northern Ireland

81

• (1) In paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (prohibition on deduction or recovery of Class 1 contributions), sub-paragraph (2) shall be omitted.

• (2) After that paragraph there shall be inserted—

(3A) (1) Subject to sub-paragraph (2) below, a person who is or has been liable to pay any secondary Class 1 or any Class 1A or Class 1B contributions shall not— (a) make, from earnings paid by him, any deduction in respect of any such contributions for which he or any other person is or has been liable; (b) otherwise recover any such contributions (directly or indirectly) from any person who is or has been a relevant earner; or (c) enter into any agreement with any person for the making of any such deduction or otherwise for the purpose of so recovering any such contributions. (2) Sub-paragraph (1) above does not apply to the extent that an agreement between— (a) a secondary contributor, and (b) any person (“the earner”) in relation to whom the secondary contributor is, was or will be such a contributor in respect of the contributions to which the agreement relates, allows the secondary contributor to recover (whether by deduction or otherwise) the whole or any part of any secondary Class 1 contribution payable in respect of a gain that is treated as remuneration derived from that earner’s employment by virtue of section 4(4)(a) above. (3) Sub-paragraph (2) above does not authorise any recovery (whether by deduction or otherwise)— (a) in pursuance of any agreement entered into before 19th May 2000; or (b) in respect of any liability to a contribution arising before the day of the passing of the Child Support, Pensions and Social Security Act 2000. (4) In this paragraph— - “agreement” includes any arrangement or understanding (whether or not legally enforceable); and - “relevant earner”, in relation to a person who is or has been liable to pay any contributions, means an earner in respect of whom he is or has been so liable. (3B) (1) This paragraph applies where— (a) an election is jointly made by— (i) a secondary contributor, and (ii) a person (“the earner”) in relation to whom the secondary contributor is or will be such a contributor in respect of contributions on share option gains by the earner, for the whole or a part of any liability of the secondary contributor to contributions on any such gains to be transferred to the earner; and (b) the election is one in respect of which the Inland Revenue have, before it was made, given by notice to the secondary contributor their approval to both— (i) the form of the election; and (ii) the arrangements made in relation to the proposed election for securing that the liability transferred by the election will be met. (2) Any liability which— (a) arises while the election is in force, and (b) is a liability to pay the contributions on share option gains by the earner, or the part of them, to which the election relates, shall be treated for the purposes of this Act, the Administration Act and Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 as a liability falling on the earner, instead of on the secondary contributor. (3) Subject to sub-paragraph (7)(b) below, an election made for the purposes of sub-paragraph (1) above shall continue in force from the time when it is made until whichever of the following first occurs, namely— (a) it ceases to have effect in accordance with its terms; (b) it is revoked jointly by both parties to the election; (c) notice is given to the earner by the secondary contributor terminating the effect of the election. (4) An approval given to the secondary contributor for the purposes of sub-paragraph (1)(b) above may be given either— (a) for an election to be made by the secondary contributor and a particular person; or (b) for all elections to be made, or to be made in particular circumstances, by the secondary contributor and particular persons or by the secondary contributor and persons of a particular description. (5) The grounds on which the Inland Revenue shall be entitled to refuse an approval for the purposes of sub-paragraph (1)(b) above shall include each of the following— (a) that it appears to the Inland Revenue that adequate arrangements have not been made for securing that the liabilities transferred by the proposed election or elections will be met by the person or persons to whom they would be so transferred; and (b) that it appears to the Inland Revenue that they do not have sufficient information to determine whether or not grounds falling within paragraph (a) above exist. (6) If, at any time after they have given an approval for the purposes of sub-paragraph (1)(b) above, it appears to the Inland Revenue— (a) that the arrangements that were made or are in force for securing that liabilities transferred by elections to which the approval relates are met are proving inadequate or unsatisfactory in any respect, or (b) that any election to which the approval relates has resulted, or is likely to result, in the avoidance or non-payment of the whole or any part of any secondary Class 1 contributions, the Inland Revenue may withdraw the approval by notice to the secondary contributor. (7) The withdrawal by the Inland Revenue of any approval given for the purposes of sub-paragraph (1)(b) above— (a) may be either general or confined to a particular election or to particular elections; and (b) shall have the effect that the election to which the withdrawal relates has no effect on contributions on share option gains in respect of any right to acquire shares obtained after— (i) the date on which notice of the withdrawal of the approval is given; or (ii) such later date as the Inland Revenue may specify in that notice. (8) Where the Inland Revenue have refused or withdrawn their approval for the purposes of sub-paragraph (1)(b) above, the person who applied for it or, as the case may be, to whom it was given may appeal to the Special Commissioners against the Inland Revenue’s decision. (9) On an appeal under sub-paragraph (8) above the Special Commissioners may— (a) dismiss the appeal; (b) remit the decision appealed against to the Inland Revenue with a direction to make such decision as the Special Commissioners think fit; or (c) in the case of a decision to withdraw an approval, quash that decision and direct that that decision is to be treated as never having been made. (10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of gains realised before it was made. (11) Regulations made by the Inland Revenue may make provision with respect to the making of elections for the purposes of this paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, in particular— (a) prescribe the matters that must be contained in such an election; (b) provide for the manner in which such an election is to be capable of being made and of being confined to particular liabilities or the part of particular liabilities; and (c) provide for the making of applications for such approvals and for the manner in which those applications are to be dealt with. (12) Where— (a) an election is made under this paragraph before the end of the period of three months beginning with the date of the passing of the Child Support, Pensions and Social Security Act 2000, and (b) that election is expressed to relate to liabilities for contributions arising on or after 19th May 2000 and before the making of the election, this paragraph shall have effect in relation to those liabilities as if sub-paragraph (2) above provided for them to be deemed to have fallen on the earner (instead of on the secondary contributor); and the secondary contributor shall accordingly be entitled to reimbursement from the earner for any payment made by that contributor in or towards the discharge of any of those liabilities. (13) In this paragraph references to contributions on share option gains by the earner are references to any secondary Class 1 contributions payable in respect of a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above. (14) In this paragraph “the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts.

• (3) In section 6(4) of that Act (persons by whom Class 1 contributions are payable), for the words from “paragraph 3” onwards there shall be substituted “paragraphs 3 to 3B of Schedule 1 to this Act.”

• (4) In paragraph 8(1) of Schedule 1 to that Act (general regulations), after paragraph (c) there shall be inserted—

(ca) for requiring a secondary contributor to notify a person to whom any of his liabilities are transferred by an election under paragraph 3B above of— (i) any transferred liability that arises; (ii) the amount of any transferred liability that arises; and (iii) the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to that election;

.

• (5) In Article 7(1) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (decisions to be taken by officers of the Inland Revenue), after sub-paragraph (i) there shall be inserted—

(ia) to decide whether to give or withdraw an approval for the purposes of paragraph 3B(1)(b) of Schedule 1 to the Contributions and Benefits Act;

.

• (6) In Article 9 of that Order (regulations about varying or superseding decisions), at the beginning of paragraph (1) there shall be inserted “Subject to paragraph (2A) below,”, and after paragraph (2) there shall be inserted—

(2A) The decisions in relation to which provision may be made by regulations under this Article shall not include decisions falling within Article 7(1)(ia) of this Order.

• (7) In Article 11(4) of that Order (appeals to be heard by General Commissioners), after “Subject to” there shall be inserted “paragraph 3B(8) of Schedule 1 to the Contributions and Benefits Act (which provides for appeals under that paragraph to be heard by the Special Commissioners), to”.

Part V — Miscellaneous and supplemental

Miscellaneous

Tests for determining parentage

82

• (1) Part III of the Family Law Reform Act 1969 (tests for determining parentage) shall be amended in accordance with subsections (2) to (4).

• (2) In section 20 (power of the court to require tests)—

• (a) for subsections (1A) and (1B) (nomination of the person by whom tests are to be carried out) there shall be substituted—

(1A) Tests required by a direction under this section may only be carried out by a body which has been accredited for the purposes of this section by— (a) the Lord Chancellor, or (b) a body appointed by him for the purpose.

;

• (b) in subsection (2)—

• (i) for “person responsible for” there shall be substituted “individual”, and

• (ii) after “this section” there shall be inserted “(“the tester”)”;

• (c) in subsection (4), for “the person who made the report” there shall be substituted “the tester”; and

• (d) in subsection (5)—

• (i) for “the person responsible for carrying out the tests taken for the purpose of giving effect to the direction, or any” there shall be substituted “the tester, or any other”,

• (ii) for “that person” there shall be substituted “the tester or that other person”, and

• (iii) after “and where” there shall be inserted “the tester or”.

• (3) In section 21 (consents, etc, required for the taking of blood samples), in subsection (3), for the words “if the person who has the care and control of him consents” there shall be substituted—

(a) if the person who has the care and control of him consents; or (b) where that person does not consent, if the court considers that it would be in his best interests for the sample to be taken.

• (4) In section 22(1) (power of Lord Chancellor to make further provision relating to tests for determining parentage)—

• (a) in paragraph (a) (power to provide that bodily samples are not to be taken except by such medical practitioners as may be appointed by the Lord Chancellor), for the words from “such medical practitioners” to the end there shall be substituted “registered medical practitioners or members of such professional bodies as may be prescribed by the regulations;”, and

• (b) for paragraph (e) (power to provide that scientific tests are not to be carried out except by persons appointed by the Lord Chancellor) there shall be substituted—

(e) prescribe conditions which a body must meet in order to be eligible for accreditation for the purposes of section 20 of this Act;

.

• (5) The amendments made by this section shall not have effect in relation to any proceedings pending at the commencement of this section.

Declarations of status

83

• (1) Part III of the Family Law Act 1986 (declarations of status) shall be amended as follows.

• (2) After section 55 there shall be inserted—

(55A) (1) Subject to the following provisions of this section, any person may apply to the High Court, a county court or a magistrates’ court for a declaration as to whether or not a person named in the application is or was the parent of another person so named. (2) A court shall have jurisdiction to entertain an application under subsection (1) above if, and only if, either of the persons named in it for the purposes of that subsection— (a) is domiciled in England and Wales on the date of the application, or (b) has been habitually resident in England and Wales throughout the period of one year ending with that date, or (c) died before that date and either— (i) was at death domiciled in England and Wales, or (ii) had been habitually resident in England and Wales throughout the period of one year ending with the date of death. (3) Except in a case falling within subsection (4) below, the court shall refuse to hear an application under subsection (1) above unless it considers that the applicant has a sufficient personal interest in the determination of the application (but this is subject to section 27 of the Child Support Act 1991). (4) The excepted cases are where the declaration sought is as to whether or not— (a) the applicant is the parent of a named person; (b) a named person is the parent of the applicant; or (c) a named person is the other parent of a named child of the applicant. (5) Where an application under subsection (1) above is made and one of the persons named in it for the purposes of that subsection is a child, the court may refuse to hear the application if it considers that the determination of the application would not be in the best interests of the child. (6) Where a court refuses to hear an application under subsection (1) above it may order that the applicant may not apply again for the same declaration without leave of the court. (7) Where a declaration is made by a court on an application under subsection (1) above, the prescribed officer of the court shall notify the Registrar General, in such a manner and within such period as may be prescribed, of the making of that declaration.

• (3) Section 58(5)(b) (prohibition of declarations of illegitimacy) shall be omitted.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Schedule 8 (which makes amendments consequential on subsection (1)) shall have effect.

• (6) Nothing in this Act shall affect any proceedings pursuant to an application under—

• (a) section 56(1)(a) of the Family Law Act 1986, or

• (b) section 27 of the Child Support Act 1991,

which are pending immediately before the commencement of this section.

Supplemental

Expenses

84

There shall be paid out of money provided by Parliament—

• (a) any expenditure incurred by the Secretary of State for or in connection with the carrying out of his functions under this Act; and

• (b) any increase attributable to this Act in the sums which are payable out of money so provided under any other Act.

Repeals

85

• (1) The enactments mentioned in Schedule 9 (which include some spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.

• (2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained, or referred to, in the notes set out in that Schedule.

Commencement and transitional provisions

86

• (1) This section applies to the following provisions of this Act—

• (a) Part I (other than section 24);

• (b) Part II (other than sections 38 and 39 and paragraphs 4 to 6, 8(1), (3) and (4) and 13 of Schedule 5);

• (c) Part III;

• (d) sections 82 and 83 and Schedule 8;

• (e) Parts I to VII and IX of Schedule 9.

• (2) The provisions of this Act to which this section applies shall come into force on such day as may be appointed by order made by statutory instrument; and different days may be appointed under this section for different purposes.

• (3) The power to make an order under subsection (2) shall be exercisable—

• (a) except in a case falling within paragraph (b), by the Secretary of State; and

• (b) in the case of an order bringing into force any of the provisions of sections 82 and 83, Schedule 8 or Part IX of Schedule 9, by the Lord Chancellor.

• (4) In the case of Part I (other than section 24) and of sections 62 to 66, the power under subsection (2) to appoint different days for different purposes includes power to appoint different days for different areas.

• (5) The Secretary of State may by regulations make such transitional provision as he considers necessary or expedient in connection with the bringing into force of any of the following provisions of this Act—

• (a) sections 43 to 46 and section (1) of Part III of Schedule 9;

• (b) sections 68 to 70 and Schedule 7 and Part VII of Schedule 9.

• (6) Regulations under subsection (5) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

• (7) Section 174(2) to (4) of the Pensions Act 1995 (supplementary provision in relation to powers to make subordinate legislation under that Act) shall apply in relation to the power to make regulations under subsection (5) as it applies to any power to make regulations under that Act.

• (8) In this section “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

Short title and extent

87

• (1) This Act may be cited as the Child Support, Pensions and Social Security Act 2000.

• (2) The following provisions of this Act extend to Northern Ireland—

• (a) so much of section 46 as amends section 21(3) of the Pensions Act 1995;

• (b) sections 57 to 61 (except section 60(5));

• (c) section 73;

• (d) sections 78 to 81;

• (e) in Schedule 3, paragraphs 8 and 9, and in paragraph 11, sub-paragraph (2) (and sub-paragraph (1) so far as it relates to that sub-paragraph);

• (f) paragraph 6 of Schedule 5; and

• (g) this Part, except—

• (i) sections 82 and 83 and Schedule 8; and

• (ii) so much of this Part as gives effect to any repeal other than the repeals mentioned in subsection (3).

• (3) The repeals mentioned in subsection (2)(g) (which extend to Northern Ireland) are—

• (a) the repeals, in Part I of Schedule 9, that relate to the Tax Credits Act 1999;

• (b) the repeals, in sections (1), (6) and (11) of Part III of that Schedule, that relate to—

• (i) section 21(3) of the Pensions Act 1995;

• (ii) paragraph 49(a)(ii) of Schedule 3 to the Pensions (Northern Ireland) Order 1995; and

• (iii) section 52(5) of the Pension Schemes (Northern Ireland) Act 1993;

• (c) the repeals in Part IV of that Schedule (except so far as relating to the Courts and Legal Services Act 1990); and

• (d) the repeals in section (2) of Part VIII of that Schedule.

• (4) Subject to that, this Act does not extend to Northern Ireland.

SCHEDULE 1

SCHEDULE 2

Part I — Substituted Schedule 4A

Part II — Substituted Schedule 4B

SCHEDULE 3

The Army Act 1955 (3 & 4 Eliz. 2 c.18)

1

• (1) Section 150A of the Army Act 1955 (enforcement of maintenance assessment by deductions from pay) shall be amended as follows.

• (2) In subsections (1), (2)(a), (3)(a) (twice) and (4), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (3) In subsection (3) (twice), for “the assessment” there shall be substituted “ the calculation ”.

The Air Force Act 1955 (3 & 4 Eliz. 2 c.19)

2

• (1) Section 150A of the Air Force Act 1955 (enforcement of maintenance assessment by deductions from pay) shall be amended as follows.

• (2) In subsections (1), (2)(a), (3)(a) (twice) and (4), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (3) In subsection (3) (twice), for “the assessment” there shall be substituted “ the calculation ”.

The Matrimonial Causes Act 1973 (c. 18)

3

• (1) The Matrimonial Causes Act 1973 shall be amended as follows.

• (2) In section 29 (duration of continuing financial provision orders in favour of children, and age limit on making certain orders in their favour)—

• (a) in subsections (5)(a), (7) (three times) and (8)(a), for “maintenance assessment” there shall be substituted “ maintenance calculation ”;

• (b) in subsections (5)(a) and (b)(ii) and (6)(b), for “current assessment” there shall be substituted “ current calculation ”;

• (c) in subsection (6)(b), for “maintenance assessments” there shall be substituted “ maintenance calculations ”; and

• (d) in subsection (6)(b), for “those assessments” there shall be substituted “ those calculations ”.

• (3) In section 31 (variation, discharge, etc, of certain orders for financial relief)—

• (a) in subsections (11)(c) and (12)(a) and (c), for “maintenance assessment” there shall be substituted “ maintenance calculation ”; and

• (b) in subsection (11) (twice), for “the assessment” there shall be substituted “ the calculation ”.

• (4) In section 52 (interpretation), in subsection (1), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Domestic Proceedings and Magistrates Courts Act 1978 (c. 22)

4

• (1) The Domestic Proceedings and Magistrates Courts Act 1978 shall be amended as follows.

• (2) In section 5 (age limit on making orders for financial provision for children and duration of such orders)—

• (a) in subsections (5)(a), (7) (three times) and (8)(a), for “maintenance assessment” there shall be substituted “ maintenance calculation ”;

• (b) in subsections (5)(a) and (b)(ii) and (6)(b), for “current assessment” there shall be substituted “ current calculation ”; and

• (c) in subsection (6)(b), for “those assessments” there shall be substituted “ those calculations ”.

• (3) In section 20 (variation, revival and revocation of orders for periodical payments)—

• (a) in subsections (9A)(c) and (9B)(a) and (c), for “maintenance assessment” there shall be substituted “ maintenance calculation ”; and

• (b) in subsection (9A) (three times), for “the assessment” there shall be substituted “ the calculation ”.

• (4) In section 88 (interpretation), in subsection (1), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Family Law (Scotland) Act 1985 (c. 37)

5

• (1) The Family Law (Scotland) Act 1985 shall be amended as follows.

• (2) In section 5 (variation and recall of decrees of aliment), in subsection (1A), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (3) In section 7 (agreements about aliment), in subsection (2A), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (4) In section 13 (orders for periodical allowance), in subsection (4A), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (5) In section 16 (agreements about financial provision), in subsection (3)(d), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (6) In section 27 (interpretation), in subsection (1), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Insolvency Act 1986 (c. 45)

6

In section 281 of the Insolvency Act 1986 (effect of discharge on a bankrupt), in subsection (5)(b), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Debtors (Scotland) Act 1987 (c. 18)

7

• (1) The Debtors (Scotland) Act 1987 shall be amended as follows.

• (2) In section 72 (effect of sequestration on diligence against earnings), in subsection (4A), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (3) In section 106 (interpretation), in the definition of “maintenance order”, in paragraph (j), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Income and Corporation Taxes Act 1988 (c. 1)

8

• (1) The Income and Corporation Taxes Act 1988 shall be amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 617 (social security benefits and contributions), in subsection (2)(ae), for “section 24 of the Child Support Act 1995 or under any corresponding enactment” there shall be substituted “ any enactment corresponding to section 24 of the Child Support Act 1995 ”.

The Finance Act 1988 (c. 39)

9

In the Finance Act 1988, in each of subsection (5A) of section 36 (annual payments) and subsection (8A) of section 38 (maintenance payments under existing obligations: 1989-90 onwards), for “maintenance assessment made” there shall be substituted “ maintenance calculation or maintenance assessment made respectively ”.

The Children Act 1989 (c. 41)

10

• (1) Schedule 1 to the Children Act 1989 (financial provision for children) shall be amended as follows.

• (2) In paragraph 3—

• (a) in sub-paragraph (5)(a), (7) (three times) and (8)(a), for “maintenance assessment” there shall be substituted “ maintenance calculation ”;

• (b) in sub-paragraph (5)(a) and (b)(ii) and (6)(b), for “current assessment” there shall be substituted “ current calculation ”;

• (c) in sub-paragraph (6)(b), for “maintenance assessments” there shall be substituted “ maintenance calculations ”; and

• (d) in sub-paragraph (6)(b), for “those assessments” there shall be substituted “ those calculations ”.

• (3) In paragraph 6—

• (a) in sub-paragraph (9) (three times), for “the assessment” there shall be substituted “ the calculation ”; and

• (b) in sub-paragraph (9)(c), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

• (4) In paragraph 16(3), for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Child Support Act 1991 (c. 48)

11

• (1) The 1991 Act shall be amended as follows.

• (2) For “absent parent” (or any variant of that expression), wherever it occurs, there shall be substituted “ non-resident parent ” (or the corresponding variant) preceded, where appropriate, by “a” instead of “an”.

• (3) In section 4 (child support maintenance)—

• (a) in subsection (4)(a), after “be” there shall be inserted “ identified or ”; and

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) In section 7 (right of a child in Scotland to apply for assessment)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in subsection (10)—

• (i) after “qualifying child if” there shall be inserted “ (a) ”;

• (ii) after “maintenance order” there shall be inserted “ made before a prescribed date ”; and

• (iii) at the end there shall be inserted

or (b) a maintenance order made on or after the date prescribed for the purposes of paragraph (a) is in force in respect of them, but has been so for less than the period of one year beginning with the date on which it was made.

.

• (5) In section 8 (role of the courts with respect to maintenance for children)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in subsection (3), at the beginning insert “ Except as provided in subsection (3A), ”;

• (c) for subsection (3A) there shall be substituted—

(3A) Unless a maintenance calculation has been made with respect to the child concerned, subsection (3) does not prevent a court from varying a maintenance order in relation to that child and the non-resident parent concerned— (a) if the maintenance order was made on or after the date prescribed for the purposes of section 4(10)(a) or 7(10)(a); or (b) where the order was made before then, in any case in which section 4(10) or 7(10) prevents the making of an application for a maintenance calculation with respect to or by that child.

;

and

• (d) in subsection (6), for paragraph (b) there shall be substituted—

(b) the non-resident parent’s net weekly income exceeds the figure referred to in paragraph 10(3) of Schedule 1 (as it has effect from time to time pursuant to regulations made under paragraph 10A(1)(b)); and

.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) In section 14 (information required by Secretary of State), in subsection (1), after “any application” there shall be inserted “ made or treated as made ”.

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) In section 28 (power of the Secretary of State to bring or defend actions of declarator), in subsection (1)(a)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) for “or assessment was made” there shall be substituted “ was made or treated as made or the calculation was made ”.

• (11) In section 28ZA (decisions involving issues that arise on appeal in other cases), in subsection (1)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) for paragraph (b) there shall be substituted—

(b) an appeal is pending against a decision given in relation to a different matter by a Child Support Commissioner or a court.

• (12) In section 28ZB (appeals involving issues that arise on appeal in other cases)—

• (a) in subsection (1), for paragraph (a) there shall be substituted—

(a) an appeal (“appeal A”) in relation to a decision or the imposition of a requirement falling within section 20(1) is made to an appeal tribunal, or from an appeal tribunal to a Child Support Commissioner;

;

and

• (b) in subsection (4), for the words “or assessment” there shall be substituted “ or the imposition of the requirement ”.

• (13) In section 28ZC (restrictions on liability in certain cases of error)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in subsection (1)(b)(ii), for the words from “a decision” to the end there shall be substituted “ any decision (made after the commencement date) referred to in section 16(1A) ”;

• (c) in subsection (1)(b)(iii), for the words from “a decision” to the end there shall be substituted “ any decision (made after the commencement date) referred to in section 17(1) ”;

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) in subsection (6), in the definition of “adjudicating authority”, at the end there shall be inserted “ or, in the case of a decision made on a referral under section 28D(1)(b), an appeal tribunal ”.

• (14) Sections 28H (departure directions: decisions and appeals) and 28I (transitional provisions relating to departure directions) shall cease to have effect.

• (15) In section 30 (collection and enforcement of certain forms of maintenance), for subsection (2) there shall be substituted—

(2) The Secretary of State may, except in prescribed cases, arrange for the collection of any periodical payments, or secured periodical payments, of a prescribed kind which are payable for the benefit of a child even though he is not arranging for the collection of child support maintenance with respect to that child.

.

• (16) In section 32 (regulations about deduction from earnings orders), in subsection (2), after paragraph (b) there shall be inserted—

(bb) for the amount or amounts which are to be deducted from the liable person’s earnings not to exceed a prescribed proportion of his earnings (as determined by the employer);

.

• (17) In section 33 (liability orders), after subsection (5) there shall be inserted—

(6) Where regulations have been made under section 29(3)(a)— (a) the liable person fails to make a payment (for the purposes of subsection (1)(a) of this section); and (b) a payment is not paid (for the purposes of subsection (3)), unless the payment is made to, or through, the person specified in or by virtue of those regulations for the case of the liable person in question.

• (18) In section 47 (fees), after subsection (3) there shall be inserted—

(4) The provisions of this Act with respect to— (a) the collection of child support maintenance; (b) the enforcement of any obligation to pay child support maintenance, shall apply equally (with any necessary modifications) to fees payable by virtue of regulations made under this section.

• (19) In section 51 (supplementary power to make regulations), in subsection (2)—

• (a) for paragraph (a)(ii) and (iii) there shall be substituted—

(ii) the making of decisions under section 11; (iii) the making of decisions under section 16 or 17;

;

and

• (b) for paragraph (b) there shall be substituted—

(b) extending the categories of case to which section 16, 17 or 20 applies;

.

• (20) In section 54 (interpretation)—

• (a) in the definition of “application for a departure direction”, for “departure direction” there shall be substituted “ variation ”, and after “28A” there shall be inserted “ or 28G ”;

• (b) after the definition of “deduction from earnings order” there shall be inserted—

“default maintenance decision” has the meaning given in section 12;

;

• (c) in the definition of “interim maintenance assessment”, for the word “assessment” there shall be substituted the word “ decision ”;

• (d) for the definition of “maintenance assessment” there shall be substituted—

“maintenance calculation” means a calculation of maintenance made under this Act and, except in prescribed circumstances, includes a default maintenance decision and an interim maintenance decision;

;

• (e) the definitions of “assessable income”, “current assessment”, “departure direction” and “maintenance requirement” shall be omitted; and

• (f) after the definition of “qualifying child” there shall be inserted—

“voluntary payment” has the meaning given in section 28J.

.

• (21) In section 58 (short title, commencement and extent)—

• (a) in subsection (9), after “35” there shall be inserted “ , 40 ”; and

• (b) in subsection (10), after “28” there shall be inserted “ , 40A ”.

• (22) In Schedule 1 (maintenance assessments)—

• (a) paragraph 13 (which relates to assessments under which the amount payable is nil) shall cease to have effect;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) in paragraph 16 (which is about the termination of assessments)—

• (i) in sub-paragraph (1), paragraphs (d) and (e) shall cease to have effect,

• (ii) sub-paragraphs (2) to (9) shall cease to have effect; and

• (iii) in sub-paragraph (10), the words “, or should be cancelled” shall cease to have effect.

The Social Security Administration Act 1992 (c. 5)

12

In section 7A of the Social Security Administration Act 1992 (sharing of functions as regards certain claims and information), in subsection (6)(a)—

• (a) after “application” there shall be inserted “ (or an application treated as having been made) ”; and

• (b) for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Child Support Act 1995 (c. 34)

13

• (1) The Child Support Act 1995 shall be amended as follows.

• (2) In section 18 (deferral of right to apply for maintenance assessment), subsection (5) (which enables the Secretary of State by order to repeal any of the provisions of section 18) shall cease to have effect.

• (3) Section 24 (which provides for the making of regulations under which compensation could be paid for a reduction in child support maintenance attributable to changes in child support legislation, and which is now spent) shall cease to have effect.

Prisoners' Earnings Act 1996 (c. 33)

14

In section 1 of the Prisoners’ Earnings Act 1996 (power to make deductions and impose levies), in subsection (4), in paragraph (d) of the definition of “net weekly earnings”, for “maintenance assessment” there shall be substituted “ maintenance calculation ”.

The Social Security Act 1998 (c. 14)

15

• (1) The Social Security Act 1998 shall be amended as follows.

• (2) In Schedule 2 (decisions against which no appeal lies), for paragraph 8 and the heading preceding it there shall be substituted—

(8) A decision to reduce the amount of a person’s benefit in accordance with a reduced benefit decision (within the meaning of section 46 of the Child Support Act).

.

SCHEDULE 4

The Schedule to be inserted after Schedule 4 to the Social Security Contributions and Benefits Act 1992 is as follows—

SCHEDULE 5

Part I — Miscellaneous amendments

Guaranteed minimum for widows and widowers

1

• (1) In section 17 of the 1993 Act (guaranteed minimum for widow or widower), after subsection (4) there shall be inserted—

(4A) The scheme must provide for the widow or widower’s pension to be payable to the widow or widower— (a) for any period for which a Category B retirement pension is payable to the widow or widower by virtue of the earner’s contributions or would be so payable but for section 43(1) of the Social Security Contributions and Benefits Act 1992 (persons entitled to more than one retirement pension); (b) for any period for which widowed parent’s allowance or bereavement allowance is payable to the widow or widower by virtue of the earner’s contributions; and (c) in the case of a widow or widower whose entitlement by virtue of the earner’s contributions to a widowed parent’s allowance or bereavement allowance has come to an end at a time after the widow or widower attained the age of 45, for so much of the period beginning with the time when the entitlement came to an end as neither— (i) comprises a period during which the widow or widower and a person of the opposite sex are living together as husband and wife; nor (ii) falls after the time of any remarriage by the widow or widower.

• (2) In subsection (5) of that section—

• (a) for “must provide” there shall be substituted “must also make provision”;

• (b) the words “Category B retirement pension,”, in the first place where they occur, and the words from “or for which” onwards shall be omitted.

• (3) In subsection (6) of that section, for “must provide” there shall be substituted “must also make provision”.

Transfer of rights to overseas personal pension schemes

2

• (1) In section 20(1) of the 1993 Act (power to make provision for transfer of rights relating to guaranteed minimum pensions to an occupational or a personal pension scheme)—

• (a) in paragraph (a), for “or to a personal pension scheme” there shall be substituted “, to a personal pension scheme or to an overseas arrangement”; and

• (b) in paragraph (b), for “or a personal pension scheme” there shall be substituted “, a personal pension scheme or an overseas arrangement”.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 181(1) of that Act (interpretation), there shall be inserted, at the appropriate place in the alphabetical order—

“overseas arrangement” means a scheme or arrangement which— (a) has effect, or is capable of having effect, so as to provide benefits on termination of employment or on death or retirement to or in respect of earners; (b) is administered wholly or primarily outside Great Britain; (c) is not an appropriate scheme; and (d) is not an occupational pension scheme;

.

Protected rights

3

• (1) Section 28 of the 1993 Act (ways of giving effect to protected rights) shall be amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Review and alteration of rates of contribution

4

In section 42(1)(a)(i) and (3) of the 1993 Act (review of percentages mentioned in section 41), for “41(1A)(a) and (b)” there shall be substituted “41(1A) and (1B)”.

Contributions equivalent premiums: Great Britain

5

• (1) For subsection (4) of section 58 of the 1993 Act (calculation of contributions equivalent premiums) there shall be substituted—

(4) Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts— (a) the amount of every reduction made under section 41 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and (b) the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 41. (4A) The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 41(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.

• (2) In section 61(2) of that Act (recovery of amount of premium attributable to primary Class 1 contributions), after “attributable to” there shall be inserted “any actual reductions of”.

• (3) In section 63(1) of that Act (amounts to be certified by the Inland Revenue), for paragraph (b) there shall be substituted—

(b) the sum of the amounts specified in section 58(4);

.

• (4) This paragraph shall have effect, and be deemed to have had effect, in relation to any contributions equivalent premium payable on or after 6th April 1999.

Contributions equivalent premiums: Northern Ireland

6

• (1) For subsection (4) of section 54 of the Pension Schemes (Northern Ireland) Act 1993 (calculation of contributions equivalent premiums) there shall be substituted—

(4) Subject to subsection (4A), the amount of the contributions equivalent premium shall be equal to the sum of the following amounts— (a) the amount of every reduction made under section 37 (as from time to time in force) in the amount of Class 1 contributions payable in respect of the earner’s employment in employment which was contracted-out by reference to the scheme; and (b) the total amount by which the reductions falling within paragraph (a) would have been larger if the amount of the contributions falling to be reduced had in each case been at least equal to the amount of the reduction of those contributions provided for by section 37. (4A) The amounts brought into account in accordance with subsection (4)(b) shall not include any amount which, by virtue of regulations made under section 37(1D) so as to avoid the payment of trivial or fractional amounts, is an amount that was not payable by the Inland Revenue to the secondary contributor.

• (2) In section 57(2) of that Act (recovery of amount of premium attributable to primary Class 1 contributions), after “attributable to” there shall be inserted “any actual reductions of”.

• (3) In section 59(1) of that Act (amounts to be certified by the Inland Revenue), for paragraph (b) there shall be substituted—

(b) the sum of the amounts specified in section 54(4);

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• (4) This paragraph shall have effect, and be deemed to have had effect, in relation to any contributions equivalent premium payable on or after 6th April 1999.

Use of cash equivalent for annuity

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Section 95(4) of the 1993 Act (cash equivalent of rights under a money purchase contracted-out scheme not to be used for purchase of annuity) shall cease to have effect.

Transfer values where pension in payment

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• (1) In section 97(2) of the 1993 Act (regulations about calculation of cash equivalents), for the “and” at the end of paragraph (a) there shall be substituted—

(aa) for a cash equivalent, including a guaranteed cash equivalent, to be reduced so as to take account of the extent (if any) to which an entitlement has arisen under the scheme to the present payment of the whole or any part of— (i) any pension; or (ii) any benefit in lieu of pension; and

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