Calculation of the student’s residual income
3.—(1) For the purpose of determining the residual income of an eligible student, there is to be deducted from the eligible student’s taxable income (unless already deducted in determining taxable income) the aggregate of any amounts falling within any of the following paragraphs—
(a)any remuneration for work done during any academic year of the eligible student’s course, provided that such remuneration does not include any sums paid in respect of any period for which the eligible student has leave of absence or is relieved of normal duties for the purpose of attending that course;
(b)the gross amount of any premium or other sum paid by the eligible student in relation to a pension (not being a pension payable under a policy of life assurance) in respect of which relief is given under section 188 of the Finance Act 2004(1), or where the student’s income is computed for the purpose 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 eligible 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; or
(b)otherwise, the value of the sterling the income would purchase using the rate for the month in which it is received published by the Office for National Statistics(2).
2004 c. 12. Section 188 was amended by the Finance Act 2007 (c. 11), sections 68 and 114 and Schedules 18 and 27, the Finance Act 2013 (c. 29), section 52 and the Finance Act 2014 (c. 26), Schedule 7.
“Financial Statistics” (ISSN 0015-203X).