The Tax Credits and Childcare (Miscellaneous Amendments) Regulations 2018

Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002

2.—(1) The Tax Credits (Definition and Calculation of Income) Regulations 2002(1) are amended as follows.

(2) In regulation 2(2) (interpretation)(2) omit the definition of “Saving Gateway Account”.

(3) In regulation 4 (employment income) in Table 1 (payments and benefits to be disregarded in the calculation of employment income) after item 3C(3) insert—

(4) In regulation 10 (investment income) in Table 4 (payments disregarded in the calculation of investment income)(4)—

(a)omit item 14, and

(b)in item 15 after “section 1” insert “or 2”.

(5) In regulation 14 (claimants treated for any purpose as having income by virtue of the Income Tax Acts)(5)—

(a)in paragraph (1) at the end insert “, but this is subject to paragraph (1A)”, and

(b)after paragraph (1) insert—

“(1A) Where paragraph (2)(b)(x) or (2)(b)(xi) applies, the amount of income that the claimant is to be treated as having is:

(1B) In paragraph (1A) “profits year” has the meaning given by section 274A of ITTOIA (reduction for individuals)(8).”.

(6) In regulation 19 (general disregards in the calculation of income) in Table 6 (sums disregarded in the calculation of income) after item 18(9) insert—

“19.  Any payment made by the Scottish Ministers to a claimant who is, or who has been, in receipt of carer’s allowance under section 70 of the Contributions and Benefits Act (carer’s allowance)(10) during the relevant tax year to supplement that allowance.

In this item and in items 20 and 21 “Scottish Ministers” has the meaning given by section 44(2) of the Scotland Act 1998(11).

20.  Any payment in respect of funeral expense assistance which is made by the Scottish Ministers to a claimant who has accepted responsibility for the expenses of a funeral to meet, or help towards meeting, those expenses.

21.  Any payment made by the Scottish Ministers in respect of early years assistance, which is made for the purposes of meeting some of the costs associated with having, or expecting to have, a baby or child in the family.

22.  Any discretionary financial assistance payment which is made by a Scottish local authority to a claimant who is in receipt of housing benefit provided by virtue of a scheme under section 123 of the Contributions and Benefits Act (income-related benefits) to meet, or help towards meeting, a claimant’s housing costs.

In this item “Scottish local authority” means “a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994”(12).”.