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The Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2011

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Calculation of parent’s residual income

5.—(1) For the purposes of determining the taxable income of an eligible student’s parent (“A” in this paragraph), 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(1) 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, 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 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 (7) 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 A’s income were in fact income for the purposes of the Income Tax Acts;

(c)where A is a parent student or A holds a statutory award, £1,130.

(3) Subject to sub-paragraph (4) where the Welsh Ministers are satisfied that the residual income of A in the financial year beginning immediately before the relevant year (“the current financial year” in this paragraph) is likely to be not more than 85 per cent of the sterling value of A’s residual income in the prior financial year they must, for the purpose of enabling the eligible student to attend the course without hardship, ascertain A’s residual income for the current financial year.

(4) In the event that sub-paragraph (3) or this sub-paragraph is applied in respect of the previous academic year of the present course and the Welsh Ministers are satisfied that the residual income of A in the current financial year is likely to be not more than 85 per cent of the sterling value of A’s residual income in the preceding financial year the Welsh Ministers must, for the purpose of enabling the eligible student to attend the course without hardship, assess A’s residual income for the current financial year.

(5) In an academic year immediately following one in which the Welsh Ministers have ascertained the residual income of A under sub-paragraph (3) or where applicable under sub-paragraph (4) and the Welsh Ministers are satisfied that the residual income of A in the current financial year is likely to be more than 85 per cent of the sterling value of A’s residual income in the preceding financial year, the Welsh Ministers must ascertain A’s residual income for the preceding financial year.

(6) Where A satisfies the Welsh Ministers that A’s income is wholly or mainly derived from the profits of a business or profession carried on by A, then any reference in this Schedule to a prior financial year means the earliest period of twelve months which ends after the start of the prior financial year and in respect of which accounts are kept relating to that business or profession.

(7) Where A is in receipt of any income which does not form part of A’s income for the purposes of the Income Tax Acts or the income tax legislation of another Member State by reason only that—

(a)A is not resident, ordinarily resident or domiciled in the United Kingdom, or where A’s 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 A’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,

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

(8) Where A’s income 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 A’s income 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.

(9) Where one of the eligible student’s parents dies either before or during the relevant year and that parent’s income has been or would be taken into account for the purpose of determining the household income, the household income is—

(a)where the parent dies before the relevant year, determined by reference to the income of the surviving parent; or

(b)where the parent dies during the relevant year, the aggregate of—

(i)the appropriate proportion of the household income determined by reference to the income of both parents, being the proportion in respect of that part of the relevant year during which both parents were alive; and

(ii)the appropriate proportion of the household income determined by reference to the income of the surviving parent, being the proportion in respect of that part of the relevant year remaining after the death of the other parent.

(10) Where the Welsh Ministers determine that the parents are separated for the duration of the relevant year, the household income is determined by reference to the income of whichever parent the Welsh Ministers consider the more appropriate under the circumstances.

(11) Where the Welsh Ministers determine that the parents have separated in the course of the relevant year, the household income is determined by reference to the aggregate of—

(a)the appropriate proportion of the household income determined in accordance with sub-paragraph (10), being the proportion in respect of that part of the relevant year during which the parents are separated; and

(b)the appropriate proportion of the household income determined otherwise in respect of the remainder of the relevant year.

(1)

1988 c. 1 to which there are amendments not relevant to these Regulations.

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