Finance (No. 2) Act 1979 (c. 47)

SCHEDULES

Section 12.

SCHEDULE 2 Social Security Pensions Act : Consequential Provisions

1 For section 8(2)(b) of the Taxes Act (under which wife's earned income relief is available in respect of a Category A retirement pension and a mobility allowance) there shall be substituted—

“(b) no payment of benefit under the Social Security Acts except—

(i) a Category A retirement pension (exclusive of any increase under section 10 of the Social Security Pensions Act 1975 or the Northern Ireland equivalent); and

(ii) a mobility allowance,

shall be treated as earned income”.

2 In section 16 of the Taxes Act (dependent relative relief where dependant's income does not exceed the basic retirement pension by more than a specified amount) for subsections (2A) and (2B) there shall be substituted—

“(2A) For the purposes of this section " the basic retirement pension " for any year means the aggregate of the payments to which a person would be entitled in that year on account of a Category A retirement pension under the Social Security Acts if the weekly rate of his pension consisted (and consisted only) of the full amount of the basic component.”

3 In section 219(1)(a) of the Taxes Act (benefits charged to or exempt from tax under Schedule E)—

(a) for the word " or" there shall be substituted the words " , Part II of the Social Security Pensions Act 1975, " ;

(b) after the words " the Social Security (Northern Ireland) Act 1975 " there shall be inserted the words " or Part III of the Social Security Pensions (Northern Ireland) Order 1975 ".

4 In section 526(5) of the Taxes Act (interpretation) after the definition of " qualifying distribution " there shall be inserted—

• “' the Social Security Acts ' means the Social Security Acts 1975 or the Social Security (Northern Ireland) Acts 1975 ;”.

5 In paragraph 1 of Schedule 4 to the [1971 c. 68.] Finance Act 1971 (benefits excluded from wife's earnings in cases of separate taxation) for paragraph (b) there shall be substituted—

“(b) any payment of benefit under the Social Security Acts except a Category A retirement pension (exclusive of any increase under section 10 of the Social Security Pensions Act 1975 or the Northern Ireland equivalent).”