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Paragraph 3 Calculation of household incomeI1

England and Wales

(1)

An eligible student's household income is calculated by applying the following steps—

Step 1

If the student is not an independent eligible student (see paragraph 4), aggregate the total residual income of the persons listed in List A.

If the student is an independent eligible student, aggregate the total income of the persons listed in List B.

  • List A

  • The persons are—

    1. (a)

      the eligible student, plus

    2. (b)

      either—

      1. (i)

        each of the eligible student's parents (subject to paragraph 5), or

      2. (ii)

        where the student's parents have separated, the parent selected under paragraph 6(3) and that parent's partner (if that parent has one), (subject to paragraph 7).

  • List B

  • The persons are—

    1. (a)

      the independent eligible student, plus

    2. (b)

      the student's partner (if the student has one), (subject to paragraphs 7 and 8).

Step 2

Calculate the applicable amount of dependent child deduction (see sub-paragraphs (2) to (4)) and deduct that from the aggregated total calculated under Step 1.

The result is the eligible student's household income.

(2)

A dependent child deduction is a deduction made in respect of each child wholly or mainly financially dependent on—

(a)

the eligible student,

(b)

the eligible student's partner,

(c)

the eligible student's parent, or

(d)

the partner of the eligible student's parent,

where the income of that person is taken into account for the purpose of calculating household income.

(3)

But no deduction is to be made in respect of a child of—

(a)

the eligible student's parent, or

(b)

the partner of the eligible student's parent,

if the child is the eligible student.

(4)

In Table 2, Column 2 sets out the amount of dependent child deduction in respect of the academic year set out in the corresponding entry in Column 1.

Table 2

Column 1Academic yearColumn 2Amount of dependent child deduction
Beginning on or after 1 September 2019£1,130

Annotations

Commencement

I1

Sch. 3 para. 3 in force at 27.5.2019, see reg. 1(2)