The Education (Student Support) (European University Institute) Regulations 2010

Calculation of the student’s partner’s residual income

4.—(1) Subject to sub-paragraphs (7), (8) and (9), for the purposes of determining the taxable income of a 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 EEA State or Switzerland, 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) 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),

shall not be made or permitted.

(2) For the purpose of determining the residual income of a student’s partner, there shall be deducted from the taxable income determined under sub-paragraph (1) the aggregated of any amounts falling within any of the following sub-paragraphs—

(a) the gross amount of any premium or other sum relating to a pension (not being a pension payable under a policy of life assurance) in respect of which relief is given under section 273, 619 or 639 of the Income and Corporation Taxes Act 1988 or under section 188 of the Finance Act 2004, or where the income is computed for the purpose of the income tax legislation of another EEA State or Switzerland, 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;

(b) in any case where income is computed in accordance with sub-paragraph (5) any sums equivalent to the deduction mentioned in paragraph (a), provided that any sums so deducted shall not exceed the deductions which would be made if the whole of the student’s partner’s income were in fact income for the purposes of the Income Tax Acts; and

(c) in the case of a student’s partner who holds a statutory award, £1,130.

(3) Where the Secretary of State is satisfied that the residual income of the student’s partner in the financial year beginning immediately before the relevant year (“current financial year”) is likely to be not more than 85 per cent. of the sterling value of the student’s partner’s residual income in the preceding financial year the Secretary of State may, for the purpose of enabling the student to attend the course without hardship, ascertain the student’s partner’s residual income for the current financial year.

(4) Where the student’s partner (“A”) satisfies the Secretary of State 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 Part to a preceding financial year shall mean 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.

(5) Where a student’s partner (“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 EEA State or Switzerland 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 EEA State or Switzerland, not so resident, ordinarily resident or domiciled in that EEA State or Switzerland;

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

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

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

(6) Where the income of the student’s partner is computed as for the purposes of the income tax legislation of another EEA State or Switzerland, it shall be computed under the provision of this Schedule in the currency of that EEA State or Switzerland and the income of the student’s partner for the purposes of this Schedule shall be 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.

(7) Where the Secretary of State determines that the student and the student’s partner are separated for the duration of the relevant year, the partner’s income is not taken into account in determining the household income.

(8) Where the Secretary of State determines that the student and the student’s partner have separated in the course of the relevant year, the partner’s income is determined by reference to that person’s income under sub-paragraph (1) divided by fifty-two and multiplied by the number of complete weeks in the relevant year for which the Secretary of State determines that the student and the student’s partner are not separated.

(9) Where a student has more than one partner in any one academic year, the provisions of this paragraph apply in relation to each.