The Social Security (Scottish Rate of Income Tax etc.) (Amendment) Regulations 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Income Support (General) Regulations 1987 (S.I. 1987/1967) (see regulation 2), the Jobseeker’s Allowance Regulations 1996 (S.I. 1996/207) (see regulation 3), the Housing Benefit Regulations 2006 (S.I. 2006/213) (see regulation 4), the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/214) (see regulation 5), the Employment and Support Allowance Regulations 2008 (S.I. 2008/794) (see regulation 6), the Jobseeker’s Allowance Regulations 2013 (S.I. 2013/378) (see regulation 7) and the Employment and Support Allowance Regulations 2013 (S.I. 2013/379) (see regulation 8).

In each of the above Regulations provision is made for the calculation or estimation of income so as to enable the Secretary of State to determine the amount of benefit a claimant should be awarded. Broadly, the income of a self-employed claimant is calculated by determining the claimant’s net profit over a representative period and then deducting (amongst other liabilities) an amount in respect of income tax, based on the basic rate of tax applicable to that period.

These Regulations amend the provisions relating to calculation or estimation of income in consequence of the power of the Scottish Parliament to set a Scottish rate of income tax provided for in Part 4A of the Scotland Act 1998 (c. 46). The power is first being exercised for the tax year 2016-2017.

These Regulations introduce definitions of a “Scottish taxpayer” and the “Scottish basic rate” of tax into each of the above Regulations and add references to the “Scottish basic rate” of tax to the existing references to the basic rate of tax.

These Regulations also update references to “personal allowance” and “personal reliefs”, in each of the Regulations in question, so as to refer to the relevant provisions of the Income Tax Act 2007 (c. 3).

An impact assessment has not been produced for this instrument as it has no impact on business or civil society organisations.