Explanatory note
(This note is not part of the Regulations)
These Regulations amend the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470) (“the Principal Regulations”). The Principal Regulations govern the repayment of income-contingent student loans paid to students under section 22 of the Teaching and Higher Education Act 1998.
Regulation 3 amends regulation 29(4)(h) of the Principal Regulations so that any loss in respect of which relief is given under sections 83, 118 and 120 of the Income Tax Act 2007 are included in the list of reliefs to be deducted for the purpose of calculating a borrower’s total income under regulation 29(3) of the Principal Regulations.
Regulation 4 rectifies an error in regulation 46 of the Principal Regulations by removing an inaccurate reference to ‘paragraph (3)’ of that regulation.
Regulation 5 applies the provisions of Part 5A of the Taxes Management Act 1970 to a determination made under regulation 62 of the Principal Regulations.
Regulation 6 amends regulation 68 of the Principal Regulations so as to apply certain penalties under Schedule 56 of the Finance Act 2009, which are being introduced from 6 April 2010, to employers who make late payments of student loan repayments to HMRC.
Regulations 6 and 7 remove references in the Principal Regulations to regulations 202 and 203 of the Income Tax (Pay As You Earn) Regulations 2003 (“PAYE Regulations”).These changes mirror amendments being made to the PAYE Regulations.
Regulation 8(a) prevents monies received by a bankrupt in accordance with a student loan being used to benefit the bankrupt’s creditors under an income payments agreement. Regulation 8(b) inserts new provisions into regulation 80 of the Principal Regulations so that student loans made to a borrower who enters an individual voluntary arrangement will be treated in a similar way as they are treated under a bankruptcy in England and Wales.
Paragraphs (c) and (d) of regulation 8 make equivalent provisions for Northern Ireland.
An impact assessment has not been prepared in respect of this instrument as it has no impact on the cost of business, charities or voluntary bodies.