1997 No. 820
SOCIAL SECURITY

The Social Security (Contributions) Amendment (No. 3) Regulations 1997

Made
Laid before Parliament
Coming into force
The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required1, in exercise of powers conferred by sections 3(2) and (3), 122(1) and 175(1) to (3) of, and paragraph 6(1) of Schedule 1 to, the Social Security Contributions and Benefits Act 19922 and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it3, hereby makes the following Regulations:

Citation, commencement and interpretation1.

(1)

These Regulations may be cited as the Social Security (Contributions) Amendment (No. 3) Regulations 1997 and shall come into force on 6th April 1997.

(2)

In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 19794 and “Schedule 1” means Schedule 1 to the principal Regulations (containing the provisions of the Income Tax (Employments) Regulations 19735 as (with extensions and modifications) they apply to earnings-related contributions and Class 1A contributions under the Social Security Contributions and Benefits Act 19926).

Amendment of regulation 19 of the principal Regulations2.

(1)

Paragraph (1) of regulation 19 of the principal Regulations (payments to be disregarded)7 shall be amended in accordance with the following provisions of this regulation.

(2)

In sub-paragraphs (w) and (x) for “pilot”, substitute “(including a pilot)”.

(3)

After sub-paragraph (y), add—

“(z)

a payment by way of an allowance—

(i)

which by virtue of section 319 of the Income and Corporation Taxes Act 1988 (Crown Servants: foreign service allowance)8 is not regarded as income for any income tax purpose; or

(ii)

made to any person in the service of the Commonwealth War Graves Commission or the British Council with a view to compensating him for the extra cost of having to live outside the United Kingdom in order to perform his duties.”.

Amendment of Schedule 13.

In regulation 26D(5)(b) of Schedule 1 (payment of Class 1A contributions on succession to, or cessation of, business)9 for “6th April or 6th May”, substitute “6th April, 6th May or 6th June”.

Signed by authority of the Secretary of State for Social Security.

A. J. B. Mitchell
Parliamentary Under-Secretary of State,
Department of Social Security

The Commissioners of Inland Revenue hereby concur.

A. M. W. Battishill
G. H. Bush
Two of the Commissioners of Inland Revenue
(This note is not part of the Regulations)

These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).

Regulation 2 amends regulation 19(1) of the principal Regulations (payments to be disregarded). It widens the disregard in respect of Jobmatch Schemes to cover the permanent Scheme as well as pilots (regulation 19(1)(w) and (x)) and adds a new disregard in respect of allowances which are not taxable income by virtue of section 319 of the Income and Corporation Taxes Act 1988, and similar allowances paid to those in the service of the Commonwealth War Graves Commission and the British Council.

Regulation 3 amends regulation 26D of Schedule 1 to the principal Regulations to provide new time limits for the payment, by a former employer, of Class 1A contributions upon the succession to, or cessation of, a business.

These Regulations do not impose any costs on business.