The Tax Credits (New Deal Pilot Consequential Amendments) (Northern Ireland) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations make amendments to the Family Credit (General) Regulations (Northern Ireland) 1987 (S.R. 1987 No. 463) and the Disability Working Allowance (General) Regulations (Northern Ireland) 1992 (S.R. 1992 No. 78), which are consequential on the establishment of a pilot scheme known as “the intensive activity period of the New Deal pilot for 25 plus” (“the pilot scheme”) by the Social Security (New Deal Pilot) Regulations (Northern Ireland) 2000 (S.R. 2000 No. 369). Family credit and disability working allowance became known as working families' tax credit and disabled person’s tax credit respectively (collectively “tax credit”) on 5th October 1999. The principal effects of the amendments are to enable participants in the pilot scheme to continue to claim tax credits.

Regulation 1 provides for citation, commencement and duration.

Regulation 2 provides for interpretation.

Regulation 3 provides that the amendments in regulations 4 to 10 apply only in relation to a person’s participation in the pilot scheme (and in consequence not, as regards regulations 4 and 6 to 10, participation in the separate pilot scheme known as “the New Deal Education and Training Opportunities for 25 plus”).

Regulation 4 modifies the definition of “training allowance” which applies for the purposes of tax credits in relation to participants in the pilot scheme.

Regulation 5 provides that participants in the pilot scheme shall not be treated for tax credit purposes as in remunerative work.

Regulation 6 ensures that certain payments made to participants in the pilot scheme are not treated for tax credit purposes as either notional income or notional earnings, and regulation 7 ensures that such payments are not treated for tax credit purposes as notional capital.

Regulations 8 and 9 ensure that certain payments made to participants in the pilot scheme are disregarded for tax credit purposes as both income and capital.

Regulation 10 provides that participants in the pilot scheme who are receiving assistance in pursuing self-employed earner’s employment are subject to special rules for tax credit purposes as to the treatment of their income and capital.