Regulation 9 Calculation of eligible student’s residual income

(1)

Except where the student is undertaking a designated course comprising a period of part-time study, for the purpose of determining the residual income of an eligible student, there is deducted from his or her taxable income (unless already deducted in determining taxable income) the aggregate of any amounts falling within any of the following sub-paragraphs—

(a)

any remuneration for work done during the relevant year, provided that such remuneration does not include any sums paid in respect of any period for which he or she has leave of absence or is relieved of his or her normal duties for the purpose of attending that course;

(b)

the gross amount of any premium or other sum paid by the eligible student in relation to a pension (not being a pension payable under a policy of life insurance) in respect of which relief is given under section 273 of the Income and Corporation Taxes Act 1988^f1, or under section 188 of the Finance Act 2004^f2, or where the eligible student’s income is computed for the purposes of the income tax legislation of another Member State, the gross amount of any such premium or sum in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts.

(2)

Where the only paragraph in Part 2 of Schedule 1 to the 2007 Regulations into which an eligible student falls is paragraph 9 and his or her income arises from sources or under legislation different from sources or legislation normally relevant to a person referred to in paragraph 9 of Part 2 of Schedule 1 to the 2007 Regulations, his or her income is not disregarded in accordance with paragraph (1) but is instead disregarded to the extent necessary to ensure that he or she is treated no less favourably than a person who is referred to in any paragraph of Part 2 of Schedule 1 to the 2007 Regulations would be treated if in similar circumstances and in receipt of similar income.

(3)

Where the eligible student receives income in a currency other than sterling, the value of that income for the purpose of this paragraph is—

(a)

if the student purchases sterling with the income, the amount of sterling the student so receives;

(b)

otherwise, the value of the sterling which the income would purchase using the rate for the month in which it is received published by the Office for National Statistics^f3.

Annotations

Footnotes

f1: 1988 c. 1; section 273 was amended by the Finance Act 1988 (c. 39), section 35 and Schedule 3, paragraph 10; the Income Tax (Trading and Other Income) Act 2005 (c. 5), sections 882 and 883 and Schedule 1, the Finance Act 2004 (c. 12), section 281 and Schedule 35, the Income Tax Act 2007 (c. 3), section 1027 and Schedule 1 and the Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regulations 17 and 59.
f2: 2004 c. 12; section 188 was amended by the Finance Act 2007 (c. 11), sections 68, 69, 114 and Schedules 18 and 19.
f3: Financial Statistics (ISSN 0015-203X)