5.—(1) For the purposes of this paragraph, “preceding financial year” means the financial year immediately preceding the year in respect of which the resources of the student fall to be assessed (“assessment year”) and “current financial year” means the financial year which includes the first day of that assessment year;
Provided that where references to a financial year fall to be construed in accordance with paragraph 2(3) as references to a year ending with a date less than five months before the assessment year, “preceding financial year” shall mean the year ending with a date five or more months before the beginning of that assessment year and “current financial year” shall mean the year ending with a date within those five months.
(2) Subject to the provisions of this paragraph, “gross income” means the income of the student’s parent in the preceding financial year or, for the purpose of calculating residual income under paragraph 2(2), in a financial year there mentioned.
(3) Where the board is satisfied that the income of the parent in the current financial year is likely to be not more than 85 per cent of his income for the preceding financial year, it may for the purpose of calculating the parental contribution ascertain the gross income by reference to the current financial year; and, in such case, sub-paragraph (2) shall have effect, in relation to the assessment year and, if the board so determines, any subsequent year, as if the reference therein to the preceding financial year were a reference to the current financial year.
(4) Where—
(a)one of the student’s parents dies either before or during the assessment year; and
(b)that parent’s income has been or would be taken into account for the purpose of determining the parental contribution,
the parental contribution shall—
(a)where the parent dies before the assessment year, be determined by reference to the income of the surviving parent; or
(b)where the parent dies during the assessment year, be the aggregate of—
(i)the appropriate proportion of the contribution determined by reference to the income of both parents, that is to say such proportion thereof as the part of the assessment year during which both parents were alive bears to the full year subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 7; and
(ii)the appropriate proportion of the contribution determined by reference to the income of the surviving parent, that is to say such proportion thereof as the part of the assessment year remaining after the parent dies bears to the full year subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 7.
(5) Without prejudice to sub-paragraph (6), where, in pursuance of any trust deed or other instrument or by virtue of sub-sections (1) and (2) of section 32 of the Trustee Act (Northern Ireland) 1958(1) or any other statutory provision any income is applied by any person for or towards the maintenance, education or other benefit of the student or of any person dependent on the student’s parent, or payments made to his parent are required to be so applied, that income, or those payments, shall be treated as part of the gross income of the parent.
(6) Where any award such as is mentioned in paragraph 1(1)(b)(i) is made by reason of the parent’s employment to any member of his family or his household (whether the student or some other such member) who holds a statutory award then, notwithstanding the provisions of section 154 of the Income and Corporation Taxes Act 1988(2), that award shall not be treated as part of the gross income of the parent.
(7) Where the parents do not ordinarily live together throughout the assessment year, the parental contribution shall be determined by reference to the income of whichever parent the board considers the more appropriate in the circumstances.
(8) Where the parents do not ordinarily live together for part only of the assessment year, the parental contribution shall be the aggregate of—
(a)the proportion, which the part of the assessment year for which the parents do not so live together bears to the full year, of the contribution determined in accordance with sub-paragraph (7) subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 7; and
(b)the proportion, which the part of the assessment year for which the parents so live together bears to the full year, of the contribution determined without regard to sub-paragraph (7) subject to a maximum of the same proportion of the student’s maintenance requirements as determined in accordance with Schedule 7.
(9) Where the student has a parent and a step-parent, the parental contribution shall be ascertained by reference to the income of the parent.