3.—(1) For the purpose of determining the residual income of an eligible part-time student, there is deducted from the eligible part-time student’s taxable income (unless already deducted in determining taxable income) the gross amount of any premium or other sum paid by the 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 188 of the Finance Act 2004(1), or where the 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 an eligible part-time student falls is paragraph 9 and the eligible part-time student’s 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, the eligible part-time student’s income is not disregarded in accordance with sub-paragraph (1) but is instead disregarded to the extent necessary to ensure that the eligible part-time student 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 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 eligible part-time student purchases sterling with the income, the amount of sterling the eligible part-time 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(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).