PART 3 Repayments by Assessment to Income Tax

29 Time for and amount of repayments
1 Every borrower who has received a notice from the Authority of a requirement to make repayments of a student loan under regulation 15(3)(a) must make repayment in respect of any tax year—
(a) which is specified in a notice under regulation 15(3)(a) or which, subject to paragraph (2), is any subsequent year up to and including any year specified in a notice under regulation 15(3)(d); and
(b) for which the borrower has been required to make and deliver a return under section 8 of the 1970 Act.
2 A borrower will not be required to make repayments in respect of any tax year specified in a notice under regulation 15(3)(c) or any subsequent year falling before a year specified in a subsequent notice under regulation 15(3)(a).
3 The repayment must be an amount equal to 9% of the borrower’s total income for that year calculated in accordance with paragraph (4).
4 A borrower’s total income for the purposes of paragraph (3) will be calculated by identifying the borrower’s total income in accordance with step 1 of section 23 of the 2007 Act and from that total income:
(a) excluding the first £15,000;
(b) where a borrower is an eligible teacher in part-time eligible employment, excluding any amount of income from that employment in excess of £15,000;
(c) excluding unearned income unless the amount of such income for that year exceeds £2,000;
(d) excluding incapacity benefit payable under the Social Security Contributions and Benefits Act 1992;
1992 c.4
(e) excluding amounts chargeable to tax under Chapters 5, 6, 7 or 10 of Part 3 of the 2003 Act (benefits in kind);
(f) excluding amounts of any reduction or repayment made under the Teachers’ Regulations;
(g) excluding Employment and Support Allowance paid under the Welfare Reform Act 2007;
2007 c.5
(h) deducting the amount of any loss in respect of which relief is given under–
(i) section 64 of the 2007 Act (in respect of losses in a trade, profession or vocation), or
(ii) section 128 of the 2007 Act (in respect of losses in an employment); and
(i) deducting the amount of any payment in respect of which relief is given under section 96 of the 2007 Act (relief for post-cessation expenditure);
(j) deducting any amounts in respect of which relief is given under Part 4 Chapter 4 of the Finance Act 2004 (pension schemes etc) and that have not been included in the calculation of total income at step 1 of section 23 of the 2007 Act.
2004 c.12
The requirements to ‘exclude’ certain income and to ‘deduct’ other sources of income from a borrower’s total income for the purposes of student loan repayments reflects the structure of section 23 of the 2007 Act.
5 For the purposes of this regulation, unearned income is income other than—
(a) income charged under the provisions of either the 2003 Act or Part 2 of the 2005 Act except jobseeker’s allowance to which Chapter 3 of Part 10 of the 2003 Act applies; and
(b) the profits of a UK furnished holiday lettings business within the meaning of section 127(2) of the 2007 Act.
6 For the purposes of this regulation, “jobseeker’s allowance” means an allowance within the meaning of Part 1 of the Jobseekers Act 1995.
1995 c.18
Reg. 29 in force at 6.4.2009, see reg. 1(1)