Paragraph 4 Calculation of eligible student’s residual incomeI1

England and Wales

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 7 para. 1 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 2 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 3 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 4 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 5 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 6 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)
Sch. 7 para. 7 coming into force by Lifelong Learning (Student Support) (Amendment of Fees and Awards etc.) 2026 reg. 1(1)(b)

(1)

For the purpose of determining the residual income of an eligible student, there is deducted from the student’s taxable income the aggregate of any amounts falling within any of the following sub-paragraphs—

(a)

any remuneration for work done during any course year of the eligible student’s course, provided that such remuneration does not include any sums paid in respect of any period for which the student has leave of absence or is relieved of the student’s 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 188 of the Finance Act 2004^f1, or where the eligible student’s income is computed for the purposes of the income tax legislation of a 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,

provided that an amount is not to be deducted if it has already been deducted in determining the student’s taxable income.

(2)

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 which the student receives as a result;

(b)

otherwise the value of the sterling which the income would purchase using the average rate published by His Majesty’s Revenue and Customs for the calendar year which ends before the start of the relevant year.

(3)

Where the eligible student is studying two or more courses in the same service year, the reference in paragraph (1)(a) to the eligible student’s course is a reference to whichever of those courses has the earliest course start date.

Annotations

Commencement

I1: Sch. 7 para. 4 in force at 1.9.2026, see reg. 1(1)(b)

Footnotes

f1: 2004 c. 12. Section 188 was amended by paragraph 2 of Schedule 18 and Schedule 27 to the Finance Act 2007 (c. 11), section 52 of the Finance Act 2013 (c. 29), and paragraph 13 of Schedule 7 to the Finance Act 2014.