This Statutory Instrument has been made as a consequence of a defect in S.I. 2020/534 and is being issued free of charge to all known recipients of that Statutory Instrument.
Statutory Instruments
2020 No. 941
Tax Credits
The Tax Credits (Coronavirus, Miscellaneous Amendments) (No. 2) Regulations 2020
Made
3rd September 2020
Laid before Parliament
4th September 2020
Coming into force
25th September 2020
The Treasury, in exercise of the powers conferred by sections 7(8), 10(2) and 65(1) of the Tax Credits Act 2002( 1 ), make the following Regulations.
Citation and commencement
Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002
2. —(1)The Tax Credits (Definition and Calculation of Income) Regulations 2002( 2 ) are amended as follows.
(2) For regulation 6 (trading income)( 3 ) substitute—
“ Trading income
6. The claimant’s (“C”) trading income is—
(a) the amount of C’s taxable profits for the tax year arising from—
(i) any trade carried on in the United Kingdom or elsewhere;
(ii) any profession or vocation the income from which does not fall under any other provision of these Regulations; or
(b) the amount of C’s taxable profits for the year arising from C’s share of the partnership trading or professional income where C is a partner in a trade, profession or vocation.
In this regulation “taxable profits” has the same meaning as it has in Part 2 of ITTOIA ( 4 ) , but disregarding the relevant benefit amount in section 23E (tax treatment of relevant benefits) and Chapter 16 of that Part (averaging profits of farmers and creative artists). ” .
(3) In regulation 19 (general disregards in the calculation of income)( 5 ) in Table 6 (sums disregarded in the calculation of income)—
(a) omit entry 36; and
(b) after entry 35 insert—
| “ 37. Any payment made under the scheme known as the NHS Test and Trace Self-Isolation Payment Scheme established on 1st September 2020 in respect of England or under any similar scheme established in respect of Wales, Scotland or Northern Ireland. ” . |
Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002
3. —(1)The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002( 6 ) are amended as follows.
(2) In regulation 2 (interpretation) in the definition of “furloughed employee under the Coronavirus Job Retention Scheme” after “Coronavirus Act 2020” insert “or a person who is within paragraph 10.1 of the Schedule to the further direction given by the Chancellor under section 76 of that Act on 25th June 2020( 7 )”.
Rebecca Harris
James Morris
Two of the Lords Commissioners of Her Majesty’s Treasury
3rd September 2020
2002 c. 21 . Part 1 (but not Schedule 1 or 3 to that Part) has been repealed by Part 1 of Schedule 14 to the Welfare Reform Act 2012 (c. 5) from a day to be appointed. Article 1 of S.I. 2019/167 appointed the day for the coming into force of section 33(1)(f) of the Welfare Reform Act 2012 and the repeal of Part 1 of the Tax Credits Act 2002 as 1st February 2019, save for the cases referred to in Article 3 of that instrument.
S.I. 2002/2006 , relevant amending instruments are S.I. 2006/766 and 2020/534 .
Regulation 6 was substituted by regulation 3(3) of S.I. 2020/534 .
Regulation 2 of the Tax Credits (Definition and Calculation of Income) Regulations defines “ITTOIA” as the Income Tax (Trading and Other Income) Act 2005 (c. 5) . This definition was inserted by regulation 7 of S.I. 2006/766 . Section 23E was inserted by section 35(2) of the Finance (No. 2) Act 2017 (c. 32) .
Entry 36 in Table 6 in regulation 19 was inserted by regulation 3(5) of S.I. 2020/534 .
S.I. 2002/2005 ; amended by S.I. 2002/534 ; there are other amending instruments but none is relevant. Regulation 2 of that instrument inserted the definition of “furloughed employee”.
A copy of the further direction given on 25 June 2020 can be found at http://www.gov.uk/government/publications/treasury-direction-made-under-sections-71-and-76-of-the-coronavirus-act-2020 . A hard copy is available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.