Paragraph 1

In this Schedule—

• “EEA State” has the meaning given by paragraph 1 of Part 1 of Schedule 1;

• “financial year” means the period of twelve months in respect of which the income of a person whose residual income is calculated under the provisions of Part 2 of this Schedule is computed for the purposes of the income tax legislation which applies to it;

• “household income” has the meaning given in paragraph 2;

• “Member State” has the meaning given by paragraph 1 of Part 1 of Schedule 1;

• “partner” in relation to a student means any of the following—

  1. (i)

     the spouse of the student;

  2. (ii)

     the civil partner of the student;

  3. (iii)

     a person ordinarily living with the student (“A”) as if that person were A's spouse where A was aged 25 or over at the start of the academic year in respect of which A's contribution falls to be assessed;

  4. (iv)

     a person ordinarily living with the student (“A”) as if that person were A's civil partner where A was aged 25 or over at the start of the academic year in respect of which A's contribution falls to be assessed;

• “preceding financial year” means the financial year immediately preceding the relevant year;

• “relevant year” means the academic year in respect of which the household income falls to be assessed;

• “residual income” means taxable income after the application of paragraph 3 (in the case of a student) and paragraph 4 (in the case of a student's partner) and income referred to in sub-paragraph (2) received net of income tax;

• “taxable income” means, in relation to paragraph 3, in respect of the academic year for which support is sought and, in relation to paragraph 4, in respect (subject to sub-paragraphs (3) and (4) of paragraph 4) of the preceding financial year, a person's taxable income from all sources computed as for the purposes of—

  1. (a)

     the Income Tax Acts;

  2. (b)

     the income tax legislation of F1an EEA State or Switzerland which applies to a person's income;

  3. (c)

     F2where the legislation of—

     1. (i)

        the United Kingdom and one or more EEA States;

     2. (ii)

        more than one EEA State;

     3. (iii)

        the United Kingdom and Switzerland;

     4. (iv)

        one or more EEA States and Switzerland; or

     5. (v)

        the United Kingdom, Switzerland and one or more EEA States

  applies to the period, the legislation under which the Secretary of State considers the person will pay the largest amount of tax in that period.

The income referred to in this sub-paragraph is any benefits under a pension arrangement pursuant to an order made under section 23 of the Matrimonial Causes Act 1973 M1 which includes provision made by virtue of sections 25B(4) and 25E(2) of that Act or pension benefits under Part 1 of Schedule 5 to the Civil Partnerships Act 2004 M2 which includes provision made by virtue of Parts 6 and 7 of that Schedule.