The Assembly Learning Grants and Loans (Higher Education) (Wales) (Amendment) Regulations 2008

Amendments

31.  After Schedule 5, insert—

Regulation 83H

“SCHEDULE 6 FINANCIAL ASSESSMENT — PART-TIME GRANTS FOR DEPENDANTS

Definitions

1.   In this Schedule—

(a) “contributing eligible part-time student” (“myfyriwr rhan-amser cymwys sy'n cyfrannu”) has the meaning given in paragraph 2;

(b) “financial year” (“blwyddyn ariannol”) means the period of twelve months in respect of which the income of a person, whose residual income is calculated under the provisions of this Schedule, is computed for the purposes of the income tax legislation which applies to it;

(c) “household income” (“incwm aelwyd, incwm yr aelwyd, incwm sydd gan yr aelwyd”) has the meaning given in paragraph 3;

(d) “Member State” (“Aelod-wladwriaeth”) means a Member State of the European Union;

(e) “parent” (“rhiant”) means a natural or adoptive parent and “child” (“plentyn”) is construed accordingly;

(f) “parent student” (“myfyriwr sy'n rhiant”) means a contributing eligible part-time student who is the parent of an eligible student;

(g) “partner” (“partner”) in relation to a contributing eligible part-time student means any of the following—

(i) the spouse of a contributing eligible part-time student;

(ii) the civil partner of a contributing eligible part-time student;

(iii) a person ordinarily living with a contributing eligible part-time student as if he or she were his or her spouse where a contributing eligible part-time student falls within paragraph 2(1)(a) and he or she begins the designated part-time course on or after 1 September 2000;

(iv) a person ordinarily living with a contributing eligible part-time student as if he or she were his or her civil partner where a contributing eligible part-time student falls within paragraph 2(1)(a) and he or she begins the designated part-time course on or after 1 September 2005;

(h) “preceding financial year” (“blwyddyn ariannol flaenorol”) means the financial year immediately preceding the relevant year;

(i) “relevant year” (“blwyddyn berthnasol”) means the academic year in respect of which the household income falls to be assessed;

(j) “residual income” (“incwm gweddilliol”) means taxable income after the application of paragraph 4 (in the case of a contributing eligible part-time student) or paragraph 5 (in the case of a contributing eligible part-time student’s partner); and

(k) “taxable income” (“incwm trethadwy”) means, in relation to paragraph 4, in respect of the academic year for which an application has been made under regulation 84 and, in relation to paragraph 5, in respect (subject to sub-paragraphs (3), (4) and (5) of paragraph 5) of the preceding financial year, a person’s taxable income from all sources computed as for the purposes of—

(i) the Income Tax Acts;

(i) the income tax legislation of another Member State which applies to the person’s income; or

(ii) where the legislation of more than one Member State applies to the period, the legislation under which the Welsh Ministers consider the person will pay the largest amount of tax in that period (except as otherwise provided in paragraph 5).

Contributing eligible part-time student

2.— (1) For the purposes of this Schedule, a contributing eligible part-time student is an eligible part-time student in every case where—

(a) he or she is aged 25 or over on the first day of the relevant year;

(b) he or she is married or is in a civil partnership before the beginning of the relevant year, whether or not the marriage or civil partnership is still subsisting;

(c) he or she has no parent living;

(d) the Welsh Ministers are satisfied that neither of his or her parents can be found or that it is not reasonably practicable to get in touch with either of them;

(e) he or she has communicated with neither of his or her parents for the period of one year before the beginning of the relevant year or, in the opinion of the Welsh Ministers, he or she can demonstrate on other grounds that he or she is irreconcilably estranged from his or her parents;

(f) he or she was looked after by a local authority within the meaning of section 22 of the Children Act 1989(1) throughout any threemonth period ending on or after the date on which he or she attained the age of 16 and before the first day of the first academic year of the course (“the relevant period”) provided that he or she has not in fact at any time during the relevant period been under the charge or control of his or her parents;

(g) his or her parents are residing outside the European Community and the Welsh Ministers are satisfied that either—

(i) the assessment of the household income by reference to their residual income would place those parents in jeopardy; or

(ii) it would not be reasonably practicable for those parents to send any relevant funds to the United Kingdom;

(h) he or she is a member of a religious order who resides in a house of that order;

(i) he or she has the care of a person under the age of 18 as at the first day of the relevant year; or

(j) he or she has supported himself or herself out of his or her earnings for any period or periods ending before the first academic year of the course which periods together aggregate not less than three years, and for the purposes of this sub-paragraph he or she is to be treated as supporting himself or herself out of his or her earnings during any period in which—

(i) he or she was participating in arrangements for training for the unemployed under any scheme operated by, sponsored or funded by any state authority or agency, whether national, regional or local (“a relevant authority”);

(ii) he or she was in receipt of benefit payable by any relevant authority in respect of a person who is available for employment but who is unemployed;

(iii) he or she was available for employment and had complied with any requirement of registration imposed by a relevant authority as a condition of entitlement for participation in arrangements for training or receipt of benefit;

(iv) he or she held a state studentshi(2) or comparable award; or

(v) he or she received any pension, allowance or other benefit paid by any person by reason of a disability to which he or she is subject, or by reason of confinement, injury or sickness.

(2) An eligible part-time student who qualifies as a contributing eligible part-time student under paragraph 2(1)(i) in respect of an academic year of a designated part-time course retains that status for the duration of the period of eligibility.

Household income

3.— (1) The amount of a contributing eligible part-time student’s contribution depends on the household income.

(2) The household income is—

(a) in the case of a contributing eligible part-time student who has a partner, the residual income of the contributing eligible part-time student aggregated with the residual income of that student’s partner (subject to sub-paragraph (4)); or

(b) in the case of a contributing eligible part-time student who does not have a partner, the residual income of that student.

(3) In determining the household income under sub-paragraph (2), the sum of £1,100 is deducted for each child wholly or mainly financially dependent on the contributing eligible part-time student or that student’s partner.

(4) For the purpose of calculating the contribution payable in respect of a parent student, the residual income of the parent student’s partner must not be aggregated under paragraph (b) of sub-paragraph (2) in the case of a parent student whose child or whose partner’s child holds an award in respect of which the household income is calculated with reference to the residual income of the parent student or of the parent student’s partner or of both.

Calculation of contributing eligible part-time student’s residual income

4.— (1) For the purpose of determining the residual income of a contributing eligible part-time student, there is deducted from his or her taxable income (unless already deducted in determining taxable income) the aggregate of any amounts falling within any of the following sub-paragraphs —

(a) any remuneration for work done during any academic year of the contributing eligible part-time student’s course, provided that such remuneration does not include any sums paid in respect of any period for which he or she has leave of absence or is relieved of his or her normal duties for the purpose of attending that course;

(b) the gross amount of any premium or other sum paid by the contributing eligible part-time 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 273 of the Income and Corporation Taxes Act 1988(3) or under section 188 of the Finance Act 2004(4), or where the contributing eligible part-time student’s income is computed for the purposes of the income tax legislation of another 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.

(2) Where the only paragraph in Part 2 of Schedule 1 into which a contributing eligible part-time student falls is paragraph 9 and his or her income arises from sources or under legislation different from sources or legislation normally relevant to a person referred to in paragraph 9 of Part 2 of Schedule 1, his or her income is not disregarded in accordance with sub-paragraph (1) but is instead disregarded to the extent necessary to ensure that he or she is treated no less favourably than a person who is referred to in any paragraph of Part 2 of Schedule 1 would be treated if in similar circumstances and in receipt of similar income.

(3) Where the contributing eligible part-time 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 the student so receives;

(b) otherwise, the value of the sterling which the income would purchase using the rate for the month in which it is received published by the Office for National Statistics(5).

Calculation of contributing eligible part-time student’s partner’s residual income

5.— (1) For the purposes of determining the taxable income of a contributing eligible part-time student’s partner, any deductions which fall to be made or exemptions which are permitted—

(a) by way of personal reliefs provided for in Chapter 1 of Part VII of the Income and Corporation Taxes Act 1988 or, where the income is computed for the purposes of the income tax legislation of another Member State, any comparable personal reliefs;

(b) pursuant to any enactment or rule of law under which payments which would otherwise under United Kingdom law form part of a person’s income are not treated as such; or

(c) under sub-paragraph (2)

must not be made or permitted.

(2) For the purposes of determining the residual income of a contributing eligible part-time student’s partner, there is deducted from the taxable income determined under sub-paragraph (1) the aggregate of any amounts falling within any of the following sub-paragraphs —

(a) the gross amount of any premium or sum relating to a pension (not being a premium payable under a policy of life assurance) in respect of which relief is given under section 273 of the Income and Corporation Taxes Act1988, or under section 188 of the Finance Act 2004, or where the income is computed for the purposes of the income tax legislation of another Member State, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

(b) in any case where income is computed for the purposes of the Income Tax Acts by virtue of sub-paragraph (6) any sums equivalent to the deduction mentioned in sub-paragraph (a) of this sub-paragraph, provided that any sums so deducted do not exceed the deductions which would be made if the whole of the contributing eligible part-time student’s partner’s income were in fact income for the purposes of the Income Tax Acts.

(3) Where the Welsh Ministers are satisfied that the residual income of the partner in the financial year beginning immediately before the relevant year (“the current financial year”) is likely to be not more than 85 per cent. of the sterling value of his or her residual income in the preceding financial year they may, for the purpose of enabling the contributing eligible part-time student to attend the course without hardship, ascertain the partner’s residual income for the current financial year.

(4) Where the Welsh Ministers are satisfied that the residual income of the partner in any financial year is, as a result of any event, likely to be and to continue after that year to be not more than 85 per cent. of the sterling value of his or her residual income in the previous financial year they may, for the purpose of enabling the contributing eligible part-time student to attend the course without hardship, ascertain the household income for the academic year of the contributing eligible part-time student’s course in which that event occurred by taking as the residual income of the partner the average of his or her residual income for each of the financial years in which that academic year falls.

(5) Where the contributing eligible part-time student’s partner satisfies the Welsh Ministers that his or her income is wholly or mainly derived from the profits of a business or profession carried on by him or her, then any reference in this Schedule to a preceding financial year means the earliest period of twelve months which ends after the start of the preceding financial year and in respect of which accounts are kept relating to that business or profession.

(6) Where a contributing eligible part-time student’s partner is in receipt of any income which does not form part of his or her income for the purposes of the Income Tax Acts or the income tax legislation of another Member State by reason only that—

(a) he or she is not resident, ordinarily resident or domiciled in the United Kingdom, or where his or her income is computed as for the purposes of the income tax legislation of another Member State, not so resident, ordinarily resident or domiciled in that Member State;

(b) the income does not arise in the United Kingdom, or where the partner’s income is computed as for the purposes of the income tax legislation of another Member State, does not arise in that Member State; or

(c) the income arises from an office, service or employment, income from which is exempt from tax in pursuance of any legislation,

his or her taxable income for the purposes of this Schedule is computed as though the income under this sub-paragraph were part of his or her income for the purposes of the Income Tax Acts or the income tax legislation of another Member State, as the case may be.

(7) Where the income of the contributing eligible part-time student’s partner is computed as for the purposes of the income tax legislation of another Member State, it is computed under the provisions of this Schedule in the currency of that Member State and the income of the contributing eligible part-time student’s partner for the purposes of this Schedule is the sterling value of that income determined in accordance with the rate for the month in which the last day of the financial year in question falls, as published by the Office for National Statistics.

(8) Where the Welsh Ministers determine that the contributing eligible part-time student and his or her partner are separated for the duration of the relevant year, the partner’s income is not taken into account in determining the household income.

(9) Where the Welsh Ministers determine that the contributing eligible part-time student and his or her partner have separated in the course of the relevant year, the partner’s income is determined by reference to his or her income under sub-paragraph (1) divided by fifty-two and multiplied by the number of complete weeks in the relevant year for which the Welsh Ministers determine that the contributing eligible part-time student and his or her partner are not separated.

(10) Where a contributing eligible part-time student has more than one partner in any one academic year, the provisions of this paragraph apply in relation to each.

Calculation of contribution

6.— (1) The contribution payable in relation to a contributing eligible part-time student is—

(a) in any case where the household income exceeds £39,780, £1 for every complete £9.50 by which the household income exceeds£39,780; and

(b) in any case where the household income is £39,780 or less, nil.

(2) The contribution must not in any case exceed £6,060.

(3) The contribution may be adjusted in accordance with paragraph 7.

(4) Where sub-paragraph (5) applies, the aggregate contributions must not exceed £6,060.

(5) This sub-paragraph applies where the household income consists of the residual income of a contributing eligible part-time student and his or her partner where both hold a statutory award.

Split contributions

7.— (1) Where a contribution is payable under paragraph 6 in relation to a contributing eligible part-time student with a partner, the contribution is payable in accordance with the following sub-paragraphs—

(a) for any year in which a statutory award other than an award referred to in paragraph (b) of this sub-paragraph is held by the contributing eligible part-time student’s partner, the contribution payable in respect of the contributing eligible part-time student is such proportion of any contribution calculated under paragraph 7 as the Welsh Ministers after consultation with any other authority involved consider just;

(b) subject to the following sub-paragraphs, for any year in which an award payable under these Regulations, the Education (Mandatory Awards) Regulations 2003 or section 63 of the Health Services and Public Health Act 1968(and no other statutory award) is held by the contributing eligible part-time student’s partner, the contribution payable in respect of the contributing eligible part-time student is an amount equal to half the contribution calculated under paragraph 7;

(c) if, as a result of the apportionment under paragraph (b) of this sub-paragraph, the contribution calculated would not be extinguished by applying it in respect of the contributing eligible part-time student’s statutory award, the remainder of the contribution is instead applied to the relevant statutory award of his or her partner if they are both contributing eligible part-time students.

(2) Subject to sub-paragraph (3), there is added to a parent student’s residual income for the purpose of calculating the contribution to his or her statutory award any sum remaining—

(a) where the parent student is the parent of only one eligible student and the contribution payable in respect of that eligible student is greater than the statutory award in respect of that eligible student, the difference between that contribution and that statutory award; or

(b) where a parent student is the parent of more than one eligible student, any sum remaining after the apportionment of the contribution to his or her children under this Schedule.

(3) Where a parent student has a partner who is also an eligible student and whose income is taken into account in assessing the contribution in relation to the children in sub-paragraph (2), half of the sum calculated under sub-paragraph (2) is added to the parent student’s residual income.”.

(1)

1989 c. 41. Section 22 has been amended by the Children (Leaving Care) Act 2000 (c. 35), section 2, Local Government Act 2000 (c. 41), Schedule 5, paragraph 19, the Adoption and Children Act 2002 (c. 38), section 116(2) and the Children Act 2004 (c. 31), section 52.

(2)

Funding provided by the Research Councils in respect of full time post graduate study.

(3)

1988 c. 1; section 273 was amended by the Finance Act 1988 (c. 39), Schedule 3, paragraph 10, the Finance Act 2004 (c. 12), section 281, schedule 35, the Income Tax (Trading and other Income) Act 2005 (c. 5), Schedule 1 and the Income Tax Act 2007, Schedule 1.

(4)

2004 c. 12; section 188 was amended by the Finance Act 2007, sections 68, 69 and 114 and Schedules 18, 19 and 27.

(5)

“Financial Statistics” (ISSN 0015-203X).