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Child Support, Pensions and Social Security Act 2000

Type Public General Act
Publication 2000-07-28
Last updated 2016-04-06
State In force
Department Statute Law Database
Source legislation.gov.uk
articles 1
Reform history JSON API

(49A) (1) Except so far as regulations otherwise provide, the trustees or managers of an occupational pension scheme shall keep written records of— (a) any determination for the winding-up of the scheme in accordance with its rules; (b) decisions as to the time from which steps for the purposes of the winding-up of the scheme are to be taken; (c) determinations under section 38; (d) determinations in accordance with the rules of the scheme to postpone the commencement of a winding-up of the scheme. (2) For the purpose of this section— (a) the determinations and decisions of which written records must be kept under this section include determinations and decisions by persons who— (i) are not trustees or managers of a scheme, but (ii) are entitled, in accordance with the rules of a scheme, to make a determination for its winding-up; and (b) regulations may, in relation to such determinations or decisions as are mentioned in paragraph (a), impose obligations to keep written records on the persons making the determinations or decisions (as well as, or instead of, on the trustees or managers). (3) Regulations may provide for the form and content of any records that are required to be kept under this section. (4) Section 3 applies to any trustee of a scheme who fails to take all such steps as are reasonable to secure compliance by the trustees of that scheme with the obligations imposed on them by this section. (5) Section 10 applies to any trustee or manager of a scheme who fails to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with those obligations.

Directions for facilitating winding-up

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After the section 72A inserted in the Pensions Act 1995 by section 49 there shall be inserted—

(72B) (1) Subject to the following provisions of this section, the Authority shall have power, at any time after the winding-up of an occupational pension scheme has begun, to give directions under this section if they consider that the giving of the direction is appropriate on any of the grounds set out in subsection (2). (2) Those grounds are— (a) that the trustees or managers of the scheme are not taking all the steps in connection with the winding-up that the Authority consider would be being taken if the trustees or managers were acting reasonably; (b) that steps being taken by the trustees or managers for the purposes of the winding-up involve things being done with what the Authority consider to be unreasonable delay; (c) that the winding-up is being obstructed or unreasonably delayed by the failure of any person— (i) to provide information to the trustees or managers; (ii) to provide information to a person involved in the administration of the scheme; (iii) to provide information to a person of a prescribed description; or (iv) to take any step (other than the provision of information) that he has been asked to take by the trustees or managers; (d) that the winding-up would be likely to be facilitated or accelerated by the taking by any person other than the trustees or managers of any other steps; (e) that in any prescribed circumstances not falling within paragraphs (a) to (d)— (i) the provision by any person of any information to the trustees or managers or to any other person, or (ii) the taking of any other step by any person, would be likely to facilitate or accelerate the progress of the winding-up. (3) Except in prescribed circumstances, the power of the Authority to give a direction under this section in the case of a winding-up shall be exercisable only where— (a) periodic reports about the progress of the winding-up are required to be made under section 72A; and (b) the first report that has to be made for the purposes of that section in the case of that winding-up either has been made or should have been made. (4) Regulations may provide that, in prescribed circumstances, the Authority shall not give a direction on the ground set out in subsection (2)(e) except in response to an application made by the trustees or managers of the scheme for the giving of a direction on that ground. (5) A direction under this section is a direction in writing given to and imposing requirements on— (a) any or all of the trustees or managers of the scheme; (b) a person who is involved in its administration; or (c) a person of a prescribed description. (6) The requirements that may be imposed by a direction under this section are any requirement for the person to whom it is given, within such period specified in the direction as the Authority may consider reasonable— (a) to provide the trustees or managers with all such information as may be specified or described in the direction; (b) to provide a person involved in the administration of the scheme with all such information as may be so specified or described; (c) to provide a person who is of a prescribed description with all such information as may be so specified or described; (d) to take such steps (other than the provision of information) as may be so specified or described. (7) If, at any time before the end of a period within which any step is required by a direction under this section to be taken by any person, the Authority consider (whether on an application made for the purpose or otherwise) that it would be appropriate to do so, they may extend (or further extend) that period until such time as they think fit. (8) Regulations may— (a) impose limitations on the steps that a person may be required to take by a direction under this section; (b) make provision for the period within which, and the manner in which, applications may be made for a period to be extended (or further extended) under subsection (7). (9) In this section references, in relation to a scheme, to a person involved in the administration of the scheme are (subject to subsection (10)) references to any person who is so involved otherwise than as— (a) the employer in relation to that scheme; (b) a trustee or manager of the scheme; (c) the auditor of the scheme or its actuary; (d) a legal adviser of the trustees or managers of the scheme; (e) a fund manager for the scheme; (f) a person acting on behalf of a person who is involved in the administration of the scheme; (g) a person providing services to a person so involved; (h) a person acting in his capacity as an employee of a person so involved; (i) a person who would fall within any of paragraphs (f) to (h) if persons acting in relation to the scheme in any capacity mentioned in the preceding paragraphs were treated as involved in the administration of a scheme. (10) In this section references, in relation to a scheme, to a person involved in the administration of the scheme do not include references to persons of a particular description if regulations provide for persons of that description to be excluded from those references. (72C) (1) It shall be the duty of any person to whom a direction is given under section 72B to comply with it. (2) Where a direction is given under section 72B to the trustees of a trust scheme, section 3 applies to any trustee who fails, without reasonable excuse, to take all such steps as are reasonable to secure compliance with it. (3) Section 10 applies to any trustee or manager of a scheme who fails, without reasonable excuse, to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with any direction given to them under section 72B. (4) Section 10 applies to any person who— (a) is a person to whom a direction under section 72B is given otherwise than in the capacity of a trustee or manager; and (b) without reasonable excuse, fails to comply with that direction. (5) For the purposes of this section it shall not be a reasonable excuse in relation to any failure to provide information in pursuance of a direction under section 72B that the provision of that information would (but for the duty imposed by subsection (1) of this section) involve a breach by any person of a duty owed to another not to disclose that information.

Other provisions

Restriction on index-linking where annuity tied to investments

51
  • (1) In section 51(2) of the Pensions Act 1995 (annual increases in rate of pension), for “Subject to section 52” there shall be substituted “Subject to sections 51A and 52”.
  • (2) After section 51 of that Act there shall be inserted—

(51A) (1) No increase under section 51 is required to be made, at any time on or after the relevant date, of so much of any pension under a money purchase scheme as— (a) is payable by way of an annuity the amount of which for any year after the first year of payment is determined (whether under the terms of the scheme or under the terms of the annuity contract in pursuance of which it is payable) by reference to fluctuations in the value of, or the return from, particular investments; (b) does not represent benefits payable in respect of the protected rights of any member of the scheme; and (c) satisfies such other conditions (if any) as may be prescribed. (2) For the purposes of this section it shall be immaterial whether the annuity in question is payable out of the funds of the scheme in question or under an annuity contract entered into for the purposes of the scheme. (3) In this section “the relevant date” means the date appointed for the coming into force of section 51 of the Child Support, Pensions and Social Security Act 2000.

Information for members of schemes etc

52
  • (1) In subsection (1) of section 113 of the Pension Schemes Act 1993 (regulations as to information to be provided to scheme members etc.), for the word “and” at the end of paragraph (c) there shall be substituted—

(ca) of the pensions and other benefits an entitlement to which would be likely to accrue to the member, or be capable of being secured by him, in respect of the rights that may arise under it; and

.

  • (2) After subsection (3) of that section there shall be inserted—

(3A) The regulations may provide for the information that must be given to be determined, in whole or part, by reference to guidance which— (a) is prepared and from time to time revised by a prescribed body; and (b) is for the time being approved by the Secretary of State. (3B) The regulations may, in relation to cases where a scheme is being wound up, contain— (a) provision conferring power on the Regulatory Authority, at times before the period expires, to extend any period specified in the regulations as the period within which a requirement imposed by the regulations must be complied with; and (b) provision as to the contents of any application for the exercise of such a power and as to the form and manner in which, and the time within which, any such application must be made.

Jurisdiction of the Pensions Ombudsman

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  • (1) Section 146 of the Pension Schemes Act 1993 (functions of the Pensions Ombudsman) shall be amended as follows.
  • (2) In subsection (1), after paragraph (b) there shall be inserted—

(ba) a complaint made to him by or on behalf of an independent trustee of a trust scheme who, in connection with any act or omission which is an act or omission either— (i) of trustees of the scheme who are not independent trustees, or (ii) of former trustees of the scheme who were not independent trustees, alleges maladministration of the scheme,

.

  • (3) In that subsection, for the words after sub-paragraph (ii) of paragraph (d) there shall be substituted—

and in a case falling within sub-paragraph (ii) references in this Part to the scheme to which the reference relates are references to each of the schemes, (e) any dispute not falling within paragraph (f) between different trustees of the same occupational pension scheme, (f) any dispute, in relation to a time while section 22 of the Pensions Act 1995 (schemes subject to insolvency procedures) applies in relation to an occupational pension scheme, between an independent trustee of the scheme and either— (i) trustees of the scheme who are not independent trustees, or (ii) former trustees of the scheme who were not independent trustees, and (g) any question relating, in the case of an occupational pension scheme with a sole trustee, to the carrying out of the functions of that trustee.

  • (4) After that subsection there shall be inserted—

(1A) The Pensions Ombudsman shall not investigate or determine any dispute or question falling within subsection (1)(c) to (g) unless it is referred to him— (a) in the case of a dispute falling within subsection (1)(c), by or on behalf of the actual or potential beneficiary who is a party to the dispute, (b) in the case of a dispute falling within subsection (1)(d), by or on behalf of any of the parties to the dispute, (c) in the case of a dispute falling within subsection (1)(e), by or on behalf of at least half the trustees of the scheme, (d) in the case of a dispute falling within subsection (1)(f), by or on behalf of the independent trustee who is a party to the dispute, (e) in the case of a question falling within subsection (1)(g), by or on behalf of the sole trustee. (1B) For the purposes of this Part, any reference to or determination by the Pensions Ombudsman of a question falling within subsection (1)(g) shall be taken to be the reference or determination of a dispute.

  • (5) In subsection (3) (persons responsible for the management of the scheme to be the trustees and managers and employer), after “occupational pension scheme” there shall be inserted “or a personal pension scheme”.
  • (6) For paragraph (a) of subsection (6) (exclusion of the Ombudsman’s jurisdiction where court proceedings have been begun) there shall be substituted—

(a) if, before the making of the complaint or the reference of the dispute— (i) proceedings in respect of the matters which would be the subject of the investigation have been begun in any court or employment tribunal, and (ii) those proceedings are proceedings which have not been discontinued or which have been discontinued on the basis of a settlement or compromise binding all the persons by or on whose behalf the complaint or reference is made;

.

  • (7) In subsection (7) (persons who are actual or potential beneficiaries)—
  • (a) after paragraph (b) there shall be inserted—

(ba) a person who is entitled to a pension credit as against the trustees or managers of the scheme;

and

  • (b) in sub-paragraph (i) of paragraph (c), for “paragraph (a) or (b)” there shall be substituted “paragraph (a), (b) or (ba)”.
  • (8) In subsection (8) (interpretation) after the definition of “employer” there shall be inserted—

“independent trustee”, in relation to a scheme, means— (a) a trustee of the scheme appointed under section 23(1)(b) of the Pensions Act 1995 (appointment of independent trustee by insolvency practitioner or official receiver), (b) a person appointed under section 7(1) of that Act to replace a trustee falling within paragraph (a) or this paragraph;

.

  • (9) In subsection (1)—
  • (a) for “complaints and disputes” there shall be substituted “matters”;
  • (b) in paragraph (b), for the words from “is to” to the end of the paragraph there shall be substituted “are references to the other scheme referred to in that sub-paragraph”; and
  • (c) in paragraphs (c) and (d), the words “which arises”, in each place where they occur, shall be omitted.
  • (10) Subsection (6) does not have effect in relation to proceedings begun before the day appointed under section 86 for the coming into force of this section.

Investigations by the Pensions Ombudsman

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Prohibition on different rules for overseas residents etc

55

After section 66 of the Pensions Act 1995 there shall be inserted—

(66A) (1) This section applies where an occupational pension scheme contains provisions contravening subsection (2) or (3). (2) Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to— (a) the entitlement of any person to benefits under the scheme, or (b) the payment to any person of benefits under the scheme, which would be different according to whether or not a place outside the United Kingdom is specified by that person as the place to which he requires payments of benefits under the scheme to be made to him. (3) Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to— (a) the entitlement of any person to remain a member of the scheme, (b) the eligibility of any person to remain a person by or in respect of whom contributions are made towards or under the scheme, or (c) the making by or in respect of any person who is a member of the scheme of any contributions towards or under the scheme, which would be different according to whether that person works wholly in the United Kingdom or wholly or partly outside the United Kingdom. (4) Provisions contravening subsection (2) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to a person who requires payments of benefits to be made to a place outside the United Kingdom as they make in relation to a person in whose case all payments of benefits fall to be made to a place in the United Kingdom. (5) Provisions contravening subsection (3) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to persons working wholly or partly outside the United Kingdom as they make in relation to persons working wholly in the United Kingdom. (6) This section— (a) shall be without prejudice to any enactment under which any amount is to be or may be deducted, or treated as deducted, from amounts payable by way of benefits under the scheme or treated as so payable; and (b) shall not apply in relation to so much of any provision of a scheme as is required for securing compliance with the conditions of any approval, exemption or relief given or available under the Tax Acts.

Miscellaneous amendments and alternative to anti-franking rules

56

Schedule 5 (which contains miscellaneous amendments of the Pension Schemes Act 1993 and the Pensions Act 1995 and makes provision for an alternative to the anti-franking rules in Part III of that Act of 1993) shall have effect.

Chapter III — War Pensions

Rights of appeal

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  • (1) After section 5 of the Pensions Appeal Tribunals Act 1943 there shall be inserted—

(5A) (1) Where, in the case of any such claim as is referred to in section 1, 2 or 3 of this Act, the Minister makes a specified decision— (a) he shall notify the claimant of the decision, specifying the ground on which it is made, and (b) thereupon an appeal against the decision shall lie to the Tribunal on the issue whether the decision was rightly made on that ground. (2) For the purposes of subsection (1), a “specified decision” is a decision (other than a decision which is capable of being the subject of an appeal under any other provision of this Act) which is of a kind specified by the Minister in regulations made by statutory instrument. (3) Regulations under this section shall not be made unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament.

  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time limit for appeals

58
  • (1) In section 8 of the Pensions Appeal Tribunals Act 1943 (time limit for appeals), in subsection (1) (notice of appeal to be given within twelve months of notification of decision or assessment), for the words from “twelve months after” to “in any other case,” there shall be substituted “six months after”.
  • (2) After subsection (3) of that section there shall be inserted—

(4) The Minister may by regulations made by statutory instrument amend subsections (1) and (3) so as to substitute a different number of months for any number of months specified there. (5) The Minister may by regulations made by statutory instrument provide that the Tribunal may, in circumstances prescribed in the regulations, allow an appeal to be brought not later than twelve months after the end of any period limited by this section. (6) Regulations under subsection (4) or (5) shall not be made unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament.

  • (3) Subsection (1) shall not have effect in relation to—
  • (a) decisions from which an appeal lies to the Tribunal under sections 1 to 4 of the Pensions Appeal Tribunals Act 1943 and which are made before the day on which that subsection comes into force, or
  • (b) decisions or assessments from which an appeal lies to the Tribunal under section 5(2) of that Act and which are made before the day on which that subsection comes into force.
  • (4) In relation to decisions falling within subsection (3)(a) of this section, section 8 of the Pensions Appeal Tribunals Act 1943 shall have effect as if for paragraphs (a) to (c) of subsection (1) of that section there were substituted “the day on which section 58(1) of the Child Support, Pensions and Social Security Act 2000 came into force”.
  • (5) In section 6(1) of the War Pensions Act 1921 (notice of appeal to be given within twelve months of notification of rejection of claim), for “twelve” there shall be substituted “six”.
  • (6) Subsection (5) shall not have effect in relation to any appeal if the decision or assessment appealed against was made before the day on which that subsection comes into force.

Matters relevant on appeal to Pensions Appeal Tribunal

59

Before section 6 of the Pensions Appeal Tribunals Act 1943 (constitution, jurisdiction and procedure of Pensions Appeal Tribunal), there shall be inserted—

(5B) In deciding any appeal, a Pensions Appeal Tribunal— (a) need not consider any issue that is not raised by the appellant or the Minister in relation to the appeal; and (b) shall not take into account any circumstances not obtaining at the time when the decision appealed against was made.

Constitution and procedure of Pensions Appeal Tribunals

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  • (1) In sub-paragraph (2) of paragraph 2 of the Schedule to the Pensions Appeal Tribunals Act 1943 (remuneration for members of Pensions Appeal Tribunals), after “remuneration” there shall be inserted “and allowances”.
  • (2) After that sub-paragraph there shall be inserted—

(2A) Subject to sub-paragraphs (3) and (4) below, a member of such a Tribunal shall hold and vacate his office in accordance with the terms of his appointment, but shall be eligible for reappointment.

  • (3) After paragraph 2 of that Schedule, there shall be inserted—

(2A) (1) The Lord Chancellor shall ensure that the appointments made by him under paragraph 2 above have the effect, in the case of each of the Tribunals, that the persons holding office as members of that Tribunal at all times include— (a) persons who are legally qualified; (b) persons who are medically qualified; (c) persons with knowledge or experience of service in Her Majesty’s naval, military or air forces; and (d) other persons. (2) For the purposes of this Schedule a person is legally qualified if— (a) he has a seven year general qualification within the meaning of section 71 of the Courts and Legal Services Act 1990; (b) he is an advocate or solicitor in Scotland of at least seven years’ standing; or (c) he is a member of the Bar of Northern Ireland or solicitor of the Supreme Court of Northern Ireland of at least seven years’ standing. (3) For the purposes of this Schedule a person is medically qualified if he is a duly qualified medical practitioner of at least seven years’ standing. (4) In making any appointment under paragraph 2 it shall be the duty of the Lord Chancellor to have regard to the desirability of having as members of the Tribunals persons with knowledge or experience of matters relating to the disability of persons. (2B) (1) A President of Pensions Appeal Tribunals and a Deputy President of Pensions Appeal Tribunals may be appointed for each part of the United Kingdom (2) The person entitled to appoint a person under this paragraph to be a President or Deputy President of Pensions Appeal Tribunals shall be— (a) in the case of an appointment for England and Wales, the Lord Chancellor; (b) in the case of an appointment for Scotland, the Lord President of the Court of Session; and (c) in the case of an appointment for Northern Ireland, the Lord Chief Justice of Northern Ireland. (3) Only legally qualified members of a Pensions Appeal Tribunal shall be eligible for appointment under this paragraph. (4) A person shall cease to be President or Deputy President of Pensions Appeal Tribunals if he ceases to be a member of any such Tribunal. (5) The Deputy President of Pensions Appeal Tribunals for any part of the United Kingdom shall carry out such of the functions of the President for that part of the United Kingdom as that President assigns to him. (6) If at any time the President of Pensions Appeal Tribunals for any part of the United Kingdom is temporarily unable to carry out his functions under this Schedule, those functions shall be carried out by the Deputy President for that part of the United Kingdom.

  • (4) For paragraph 3 of that Schedule (constitution of Tribunal for particular hearings) there shall be substituted—

(3) The members of the Tribunal hearing a particular appeal shall in every case include a legally qualified member; and only a legally qualified member may preside as chairman for the hearing of any appeal. (3A) (1) The President of Pensions Appeal Tribunals for any part of the United Kingdom may give directions as to— (a) the number of members of the Tribunal who should hear an appeal in that part of the United Kingdom; (b) the extent to which the members hearing such an appeal must include— (i) medically qualified persons; and (ii) persons who are neither legally qualified nor medically qualified; (c) the extent to which in the case of such an appeal the members hearing it must include persons satisfying other requirements specified by the President; (d) the manner of determining the members who are to serve as the chairman and members of the Tribunal for the hearing of such an appeal. (3B) The President of Pensions Appeal Tribunals for any part of the United Kingdom may give directions as to the practice and procedure to be followed by such Tribunals in that part of the United Kingdom. (3C) (1) The power to give directions under paragraphs 3A and 3B shall be exercisable in relation to a particular appeal, to a category of appeal or to appeals generally. (2) If at any time there is, in the case of any part of the United Kingdom, neither a President of Pensions Appeal Tribunals nor a Deputy President, the power of the President to give directions under paragraphs 3A and 3B above shall be exercisable— (a) in the case of England and Wales, by the Lord Chancellor; (b) in the case of Scotland, by the Lord President of the Court of Session; and (c) in the case of Northern Ireland, by the Lord Chief Justice of Northern Ireland. (3) The power to give directions under paragraphs 3A and 3B above includes power to vary or revoke directions previously given.

  • (5) In Schedule 11 to the Courts and Legal Services Act 1990 (judges barred from legal practice), at the end there shall be inserted “Member of a Pensions Appeal Tribunal”.

Composition of central advisory committee

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  • (1) In section 9 of the Chronically Sick and Disabled Persons Act 1970 (central advisory committee on war pensions to include chairmen of not less than twelve of the war pensions committees), in subsection (1), for “chairmen of not less than twelve” there shall be substituted “chairman of at least one”.
  • (2) In section 3 of the War Pensions Act 1921 (constitution of central advisory committee), for “representatives of any committees” there shall be substituted “at least one person from one of the committees”.

Part III — Social Security

Loss of benefit

Loss of benefit for breach of community order

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Loss of joint-claim jobseeker’s allowance

63

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Information provision

64

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Loss of benefit regulations

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Appeals relating to loss of benefit

66

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Investigation powers

Investigation powers

67

Schedule 6 to this Act (which amends the enforcement provisions contained in Part VI of the Social Security Administration Act 1992) shall have effect.

Housing benefit and council tax benefit etc.

Housing benefit and council tax benefit: revisions and appeals

68

Schedule 7 (which makes provision for the revision of decisions made in connection with claims for housing benefit or council tax benefit and for appeals against such decisions) shall have effect.

Discretionary financial assistance with housing

69
  • (1) The Secretary of State may by regulations make provision conferring a power on relevant authorities to make payments by way of financial assistance (“discretionary housing payments”) to persons who—
  • (a) are entitled to housing benefit or council tax benefit, or to both , universal credit ; and
  • (b) appear to such an authority to require some further financial assistance (in addition to the benefit or benefits to which they are entitled) in order to meet housing costs.
  • (2) Regulations under this section may include any of the following—
  • (a) provision prescribing the circumstances in which discretionary housing payments may be made under the regulations;
  • (b) provision conferring (subject to any provision made by virtue of paragraph (c) or (d) of this subsection or an order under section 70) a discretion on a relevant authority—
  • (i) as to whether or not to make discretionary housing payments in a particular case; and
  • (ii) as to the amount of the payments and the period for or in respect of which they are made;
  • (c) provision imposing a limit on the amount of the discretionary housing payment that may be made in any particular case;
  • (d) provision restricting the period for or in respect of which discretionary housing payments may be made;
  • (e) provision about the form and manner in which claims for discretionary housing payments are to be made and about the procedure to be followed by relevant authorities in dealing with and disposing of such claims;
  • (f) provision imposing conditions on persons claiming or receiving discretionary housing payments requiring them to provide a relevant authority with such information as may be prescribed;
  • (g) provision entitling a relevant authority that are making or have made a discretionary housing payment, in such circumstances as may be prescribed, to cancel the making of further such payments or to recover a payment already made;
  • (h) provision requiring or authorising a relevant authority to review decisions made by the authority with respect to the making, cancellation or recovery of discretionary housing payments.
  • (3) Regulations under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
  • (4) Subsections (4) to (6) of section 189 of the Social Security Administration Act 1992 (supplemental and incidental powers etc.) shall apply in relation to any power to make regulations under this section as they apply in relation to the powers to make regulations that are conferred by that Act.
  • (5) Any power to make regulations under this section shall include power to make different provision for different areas or different relevant authorities.
  • (6) In section 176(1) of that Act (consultation with representative organisation on subordinate legislation relating to housing benefit or council tax benefit), after paragraph (a) there shall be inserted—

(aa) regulations under section 69 of the Child Support, Pensions and Social Security Act 2000;

.

  • (7) In this section—
  • “prescribed” means prescribed by or determined in accordance with regulations made by the Secretary of State; and
  • “relevant authority” means an authority administering housing benefit or council tax benefit.

Grants towards cost of discretionary housing payments

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  • (1) The Secretary of State may, out of money provided by Parliament, make to a relevant authority such payments as he thinks fit in respect of—
  • (a) the cost to that authority of the making of discretionary housing payments; and
  • (b) the expenses involved in the administration by that authority of any scheme for the making of discretionary housing payments.
  • (2) The following provisions, namely—
  • (a) subsections (1), (3), (4), (5)(b) . . . and (8) of section 140B of the Social Security Administration Act 1992 (calculation of amount of subsidy payable to authorities administering housing benefit or council tax benefit), and
  • (b) section 140C of that Act (payment of subsidy),

shall apply in relation to payments under this section as they apply in relation to subsidy under section 140A of that Act.

  • (3) The Secretary of State may by order make provision—
  • (a) imposing a limit on the total amount of expenditure in any year that may be incurred by a relevant authority in making discretionary housing payments;
  • (b) imposing subsidiary limits on the expenditure that may be incurred in any year by a relevant authority in making discretionary housing payments in the circumstances specified in the order.
  • (4) An order imposing a limit by virtue of subsection (3)(a) or (b) may fix that limit either by specifying the amount of the limit or by providing for the means by which it is to be determined.
  • (5) An order under this section shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
  • (6) Subsections (4) to (6) of section 189 of the Social Security Administration Act 1992 (supplemental and incidental powers etc.) shall apply in relation to any power to make an order under this section as they apply in relation to the powers to make an order that are conferred by that Act.
  • (7) Any power to make an order under this section shall include power to make different provision for different areas or different relevant authorities.
  • (8) In this section—
  • “discretionary housing payment” means any payment made by virtue of regulations under section 69;
  • “relevant authority” means an authority administering housing benefit or council tax benefit;
  • “subsidy” has the same meaning as in sections 140A to 140G of the Social Security Administration Act 1992;
  • “year” means a financial year within the meaning of the Local Government Finance Act 1992.

Recovery of housing benefit

71

For subsection (3) of section 75 of the Social Security Administration Act 1992 (overpayments of housing benefit) there shall be substituted—

(3) An amount recoverable under this section shall be recoverable— (a) except in such circumstances as may be prescribed, from the person to whom it was paid; and (b) where regulations so provide, from such other person (as well as, or instead of, the person to whom it was paid) as may be prescribed.

Child benefit

Child benefit disregards

72

In section 143(3)(c) of the Social Security Contributions and Benefits Act 1992 (disregard of days of absence in the case of children in residential accommodation in pursuance of arrangements made under the specified enactments), for sub-paragraph (iii) and the word “or” immediately preceding it there shall be substituted—

(iii) the Social Work (Scotland) Act 1968; (iv) the National Health Service (Scotland) Act 1978; (v) the Education (Scotland) Act 1980; (vi) the Mental Health (Scotland) Act 1984; or (vii) the Children (Scotland) Act 1995.

Social Security Advisory Committee

Social Security Advisory Committee

73
  • (1) Section 170 of the Social Security Administration Act 1992 (functions of the Social Security Advisory Committee in relation to the relevant enactments and the relevant Northern Ireland enactments) shall be amended as follows.
  • (2) In the definition in subsection (5) of “relevant enactments”, after paragraph (ae) there shall be inserted—

(af) section 42, sections 62 to 65 and sections 68 to 70 of the Child Support Pensions and Social Security Act 2000 and Schedule 7 to that Act;

.

  • (3) In the definition in that subsection of “relevant Northern Ireland enactments”, after paragraph (ae) there shall be inserted—

(af) any provisions in Northern Ireland which correspond to section 42, any of sections 62 to 65, 68 to 70 of the Child Support, Pensions and Social Security Act 2000 or Schedule 7 to that Act; and

.

Part IV — National Insurance Contributions

Great Britain

Contributions in respect of benefits in kind: Great Britain

74
  • (1) In section 1(2)(b) of the Social Security Contributions and Benefits Act 1992 (Class 1A contributions), the words “in respect of cars made available for private use and car fuel” shall be omitted.
  • (2) For section 10 of that Act (Class 1A contributions) there shall be substituted—

(10) (1) Where— (a) for any tax year an earner is chargeable to income tax under Schedule E on an amount which for the purposes of the Income Tax Acts is or falls to be treated as an emolument received by him from any employment (“the relevant employment”), (b) the relevant employment is both employed earner’s employment and employment to which Chapter II of Part V of the 1988 Act (employment as a director or with annual emoluments of more than £8,500) applies, and (c) the whole or a part of the emolument falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner, a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the emolument as falls to be so left out of account. (2) Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by— (a) the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or (b) if paragraph (a) above does not apply, the person who, if the emolument in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution. (3) In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment. (4) The amount of the Class 1A contribution in respect of any emolument shall be the Class 1A percentage of so much of it as falls to be left out of account as mentioned in subsection (1)(c) above. (5) In subsection (4) above “the Class 1A percentage” means a percentage rate equal to the percentage rate specified as the secondary percentage in section 9(2) above for the tax year in question. (6) No Class 1A contribution shall be payable for any tax year in respect of so much of any emolument as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement. (7) For the purposes of this section— (a) the amounts which for the purposes of the Income Tax Acts are or fall to be treated as emoluments received by an earner from any employment shall be determined (subject to paragraph (b) below) disregarding sections 198, 201, 201AA and 332(3) of the 1988 Act (deductions for expenses etc.); but (b) where an amount which is deductible in respect of any matter under any of those sections is at least equal to the whole of any corresponding amount which (but for this paragraph) would fall by reference to that matter to be included in those emoluments, the whole of the corresponding amount shall be treated as not so included. (8) The Treasury may by regulations— (a) modify the effect of subsection (7) above by adding any enactment contained in the Income Tax Acts to the list of sections of the 1988 Act contained in paragraph (a) of that subsection; or (b) make such amendments of subsection (7) above as appear to them to be necessary or expedient in consequence of any alteration of the provisions of the Income Tax Acts relating to the charge to tax under Schedule E. (9) The Treasury may by regulations provide— (a) for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or emoluments; (b) for reducing Class 1A contributions in prescribed circumstances. (10) In this section “the 1988 Act” means the Income and Corporation Taxes Act 1988.

  • (3) For subsection (6) of section 4 of that Act (power to treat emoluments in respect of share acquisitions etc. as earnings) there shall be substituted—

(6) Regulations may make provision for the purposes of this Part— (a) for treating any amount on which an employed earner is chargeable to income tax under Schedule E as remuneration derived from the earner’s employment; and (b) for treating any amount which in accordance with regulations under paragraph (a) above constitutes remuneration as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of his employment.

  • (4) In paragraph 5(b) of Schedule 1 to that Act (power to modify section 10 for cases where a car is made available by reason of more than one employment), for “a car is made available” there shall be substituted “something is provided or made available”.
  • (5) In paragraph 8(1)(ia) of that Schedule (power to provide by regulations for repayment in prescribed cases of the whole or a part of a Class 1B contribution), after “part” there shall be inserted “of a Class 1A or”.
  • (6) In section 120(4) of the Social Security Administration Act 1992 (proof of previous offences relating to Class 1A contributions), for “car” there shall be substituted “amount”.
  • (7) In section 162(5)(c) of that Act (appropriate national health service allocation of Class 1A contributions), for “cash equivalents of the benefits of the cars and car fuel” there shall be substituted “emoluments”.
  • (8) This section shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.
  • (9) Regulations made by statutory instrument under any power conferred by virtue of this section may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).

Third party providers of benefits in kind: Great Britain

75
  • (1) After section 10 of the Social Security Contributions and Benefits Act 1992 there shall be inserted—

(10ZA) (1) This section applies, where— (a) a Class 1A contribution is payable for any tax year in respect of the whole or any part of an emolument received by an earner; (b) the emolument, in so far as it is one in respect of which such a contribution is payable, consists in a benefit provided for the earner or a member of his family or household; (c) the person providing the benefit is a person other than the person (“the relevant employer”) by whom, but for this section, the Class 1A contribution would be payable in accordance with section 10(2) above; and (d) the provision of the benefit by that other person has not been arranged or facilitated by the relevant employer. (2) For the purposes of this Act if— (a) the person providing the benefit pays an amount for the purpose of discharging any liability of the earner to income tax for any tax year, and (b) the income tax in question is tax chargeable in respect of the provision of the benefit or of the making of the payment itself, the amount of the payment shall be treated as if it were an emolument consisting in the provision of a benefit to the earner in that tax year and falling, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner. (3) Subject to subsection (4) below, the liability to pay any Class 1A contribution in respect of— (a) the benefit provided to the earner, and (b) any further benefit treated as so provided in accordance with subsection (2) above, shall fall on the person providing the benefit, instead of on the relevant employer. (4) Subsection (3) above applies in the case of a Class 1A contribution for the tax year beginning with 6th April 2000 only if the person providing the benefit in question gives notice in writing to the Inland Revenue on or before 6th July 2001 that he is a person who provides benefits in respect of which a liability to Class 1A contributions is capable of falling by virtue of this section on a person other than the relevant employer. (5) The Treasury may by regulations make provision specifying the circumstances in which a person is or is not to be treated for the purposes of this Act as having arranged or facilitated the provision of any benefit. (6) In this section references to a member of a person’s family or household shall be construed in accordance with section 168(4) of the Income and Corporation Taxes Act 1988. (10ZB) (1) In section 10ZA above references to the provision of a benefit include references to the provision of a non-cash voucher. (2) Where— (a) a non-cash voucher is received by any person from employment to which Chapter II of Part V of the Income and Corporation Taxes Act 1988 does not apply, and (b) the case would be one in which the conditions in section 10ZA(1)(a) to (d) above would be satisfied in relation to the provision of that voucher if that Chapter did apply to that employment, sections 10 and 10ZA above shall have effect in relation to the provision of that voucher, and to any such payment in respect of the provision of that voucher as is mentioned in section 10ZA(2) above, as if that employment were employment to which that Chapter applied. (3) In this section “non-cash voucher” has the same meaning as in section 141 of the Income and Corporation Taxes Act 1988.

  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) Subsection (1) shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.
  • (4) Regulations made by virtue of this section under section 10ZA(5) of the Social Security Contributions and Benefits Act 1992 may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).

Collection etc. of NICs: Great Britain

76
  • (1) Schedule 1 to the Social Security Contributions and Benefits Act 1992 (supplementary provisions relating to contributions) shall be amended in accordance with subsections (2) to (5).
  • (2) In paragraph 7(2)(b) (application of sections 100 to 100D and 102 to 104 of the Taxes Management Act 1970 in relation to certain penalties), for “104” there shall be substituted “105”.
  • (3) For sub-paragraph (2)(e) of paragraph 7B (power to provide for interest to be charged on late payment in the case of payment outside the PAYE system) there shall be substituted—

(e) require interest to be paid on contributions that are not paid by the due date, and provide for determining the date from which such interest is to be calculated;

.

  • (4) After sub-paragraph (5) of that paragraph there shall be inserted—

(5A) Regulations under this paragraph may, in relation to any penalty imposed by such regulations, make provision applying (with or without modifications) any enactment applying for the purposes of income tax that is contained in Part X of the Taxes Management Act 1970 (penalties).

  • (5) After that paragraph there shall be inserted—

(7BA) The Inland Revenue may by regulations provide for amounts in respect of contributions or interest that fall to be paid or repaid in accordance with any regulations under this Schedule to be set off, or to be capable of being set off, in prescribed circumstances and to the prescribed extent, against any such liabilities under regulations under this Schedule of the person entitled to the payment or repayment as may be prescribed.

  • (6) In section 8(1) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (decisions to be made by an Inland Revenue officer and appealable under section 11)—
  • (a) paragraph (j) (interest under regulations made by virtue of paragraph 7B(2)(e) of Schedule 1 to the Social Security Contributions and Benefits Act 1992) shall cease to have effect; and
  • (b) in paragraph (l), for “paragraphs (j) and (k)” there shall be substituted “paragraph (k)”, and the words “amount of interest or” shall be omitted.
  • (7) Subsection (6) has effect in relation to interest accruing on sums becoming due in respect of the tax year beginning with 6th April 2000 or any subsequent tax year.

Liability of earner for secondary contributions: Great Britain

77
  • (1) In paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (prohibition on deduction or recovery of Class 1 contributions), sub-paragraph (2) shall be omitted.
  • (2) After that paragraph there shall be inserted—

(3A) (1) Subject to sub-paragraph (2) below, a person who is or has been liable to pay any secondary Class 1 or any Class 1A or Class 1B contributions shall not— (a) make, from earnings paid by him, any deduction in respect of any such contributions for which he or any other person is or has been liable; (b) otherwise recover any such contributions (directly or indirectly) from any person who is or has been a relevant earner; or (c) enter into any agreement with any person for the making of any such deduction or otherwise for the purpose of so recovering any such contributions. (2) Sub-paragraph (1) above does not apply to the extent that an agreement between— (a) a secondary contributor, and (b) any person (“the earner”) in relation to whom the secondary contributor is, was or will be such a contributor in respect of the contributions to which the agreement relates, allows the secondary contributor to recover (whether by deduction or otherwise) the whole or any part of any secondary Class 1 contribution payable in respect of a gain that is treated as remuneration derived from that earner’s employment by virtue of section 4(4)(a) above. (3) Sub-paragraph (2) above does not authorise any recovery (whether by deduction or otherwise)— (a) in pursuance of any agreement entered into before 19th May 2000; or (b) in respect of any liability to a contribution arising before the day of the passing of the Child Support, Pensions and Social Security Act 2000. (4) In this paragraph— - “agreement” includes any arrangement or understanding (whether or not legally enforceable); and - “relevant earner”, in relation to a person who is or has been liable to pay any contributions, means an earner in respect of whom he is or has been so liable. 3B.—(1) This paragraph applies where— (a) an election is jointly made by— (i) a secondary contributor, and (ii) a person (“the earner”) in relation to whom the secondary contributor is or will be such a contributor in respect of contributions on share option gains by the earner, for the whole or a part of any liability of the secondary contributor to contributions on any such gains to be transferred to the earner; and (b) the election is one in respect of which the Inland Revenue have, before it was made, given by notice to the secondary contributor their approval to both— (i) the form of the election; and (ii) the arrangements made in relation to the proposed election for securing that the liability transferred by the election will be met. (2) Any liability which— (a) arises while the election is in force, and (b) is a liability to pay the contributions on share option gains by the earner, or the part of them, to which the election relates, shall be treated for the purposes of this Act, the Administration Act and Part II of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 as a liability falling on the earner, instead of on the secondary contributor. (3) Subject to sub-paragraph (7)(b) below, an election made for the purposes of sub-paragraph (1) above shall continue in force from the time when it is made until whichever of the following first occurs, namely— (a) it ceases to have effect in accordance with its terms; (b) it is revoked jointly by both parties to the election; (c) notice is given to the earner by the secondary contributor terminating the effect of the election. (4) An approval given to the secondary contributor for the purposes of sub-paragraph (1)(b) above may be given either— (a) for an election to be made by the secondary contributor and a particular person; or (b) for all elections to be made, or to be made in particular circumstances, by the secondary contributor and particular persons or by the secondary contributor and persons of a particular description. (5) The grounds on which the Inland Revenue shall be entitled to refuse an approval for the purposes of sub-paragraph (1)(b) above shall include each of the following— (a) that it appears to the Inland Revenue that adequate arrangements have not been made for securing that the liabilities transferred by the proposed election or elections will be met by the person or persons to whom they would be so transferred; and (b) that it appears to the Inland Revenue that they do not have sufficient information to determine whether or not grounds falling within paragraph (a) above exist. (6) If, at any time after they have given an approval for the purposes of sub-paragraph (1)(b) above, it appears to the Inland Revenue— (a) that the arrangements that were made or are in force for securing that liabilities transferred by elections to which the approval relates are met are proving inadequate or unsatisfactory in any respect, or (b) that any election to which the approval relates has resulted, or is likely to result, in the avoidance or non-payment of the whole or any part of any secondary Class 1 contributions, the Inland Revenue may withdraw the approval by notice to the secondary contributor. (7) The withdrawal by the Inland Revenue of any approval given for the purposes of sub-paragraph (1)(b) above— (a) may be either general or confined to a particular election or to particular elections; and (b) shall have the effect that the election to which the withdrawal relates has no effect on contributions on share option gains in respect of any right to acquire shares obtained after— (i) the date on which notice of the withdrawal of the approval is given; or (ii) such later date as the Inland Revenue may specify in that notice. (8) Where the Inland Revenue have refused or withdrawn their approval for the purposes of sub-paragraph (1)(b) above, the person who applied for it or, as the case may be, to whom it was given may appeal to the Special Commissioners against the Inland Revenue’s decision. (9) On an appeal under sub-paragraph (8) above the Special Commissioners may— (a) dismiss the appeal; (b) remit the decision appealed against to the Inland Revenue with a direction to make such decision as the Special Commissioners think fit; or (c) in the case of a decision to withdraw an approval, quash that decision and direct that that decision is to be treated as never having been made. (10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of gains realised before it was made. (11) Regulations made by the Inland Revenue may make provision with respect to the making of elections for the purposes of this paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, in particular— (a) prescribe the matters that must be contained in such an election; (b) provide for the manner in which such an election is to be capable of being made and of being confined to particular liabilities or the part of particular liabilities; and (c) provide for the making of applications for such approvals and for the manner in which those applications are to be dealt with. (12) Where— (a) an election is made under this paragraph before the end of the period of three months beginning with the date of the passing of the Child Support, Pensions and Social Security Act 2000, and (b) that election is expressed to relate to liabilities for contributions arising on or after 19th May 2000 and before the making of the election, this paragraph shall have effect in relation to those liabilities as if sub-paragraph (2) above provided for them to be deemed to have fallen on the earner (instead of on the secondary contributor); and the secondary contributor shall accordingly be entitled to reimbursement from the earner for any payment made by that contributor in or towards the discharge of any of those liabilities. (13) In this paragraph references to contributions on share option gains by the earner are references to any secondary Class 1 contributions payable in respect of a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above. (14) In this paragraph “the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts.

  • (3) In section 6(4) of that Act (persons by whom Class 1 contributions are payable), for the words from “paragraph 3” onwards there shall be substituted “paragraphs 3 to 3B of Schedule 1 to this Act.”
  • (4) In paragraph 8(1) of Schedule 1 to that Act (general regulations), after paragraph (c) there shall be inserted—

(ca) for requiring a secondary contributor to notify a person to whom any of his liabilities are transferred by an election under paragraph 3B above of— (i) any transferred liability that arises; (ii) the amount of any transferred liability that arises; and (iii) the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to that election;

.

  • (5) In section 8(1) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (decisions to be taken by officers of the Inland Revenue), after paragraph (i) there shall be inserted—

(ia) to decide whether to give or withdraw an approval for the purposes of paragraph 3B(1)(b) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;

.

  • (6) In section 10 of that Act of 1999 (regulations about varying or superseding decisions), at the beginning of subsection (1) there shall be inserted “Subject to subsection (2A) below,”, and after subsection (2) there shall be inserted—

(2A) The decisions in relation to which provision may be made by regulations under this section shall not include decisions falling within section 8(1)(ia) above.

  • (7) In section 12(4) of that Act of 1999 (appeals to be heard by General Commissioners), after “Subject to” there shall be inserted “paragraph 3B(8) of Schedule 1 to theSocial Security Contributions and Benefits Act 1992 (which provides for appeals under that paragraph to be heard by the Special Commissioners), to”.

Northern Ireland

Contributions in respect of benefits in kind: Northern Ireland

78
  • (1) In section 1(2)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 1A contributions), the words “in respect of cars made available for private use and car fuel” shall be omitted.
  • (2) For section 10 of that Act (Class 1A contributions) there shall be substituted—

(10) (1) Where— (a) for any tax year an earner is chargeable to income tax under Schedule E on an amount which for the purposes of the Income Tax Acts is or falls to be treated as an emolument received by him from any employment (“the relevant employment”), (b) the relevant employment is both employed earner’s employment and employment to which Chapter II of Part V of the 1988 Act (employment as a director or with annual emoluments of more than £8,500) applies, and (c) the whole or a part of the emolument falls, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner, a Class 1A contribution shall be payable for that tax year, in accordance with this section, in respect of that earner and so much of the emolument as falls to be so left out of account. (2) Subject to section 10ZA below, a Class 1A contribution for any tax year shall be payable by— (a) the person who is liable to pay the secondary Class 1 contribution relating to the last (or only) relevant payment of earnings in that tax year in relation to which there is a liability to pay such a Class 1 contribution; or (b) if paragraph (a) above does not apply, the person who, if the emolument in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution. (3) In subsection (2) above “relevant payment of earnings” means a payment which for the purposes of Class 1 contributions is a payment of earnings made to or for the benefit of the earner in respect of the relevant employment. (4) The amount of the Class 1A contribution in respect of any emolument shall be the Class 1A percentage of so much of it as falls to be left out of account as mentioned in subsection (1)(c) above. (5) In subsection (4) above “the Class 1A percentage” means a percentage rate equal to the percentage rate specified as the secondary percentage in section 9(2) above for the tax year in question. (6) No Class 1A contribution shall be payable for any tax year in respect of so much of any emolument as is taken for the purposes of the making of Class 1B contributions for that year to be included in a PAYE settlement agreement. (7) For the purposes of this section— (a) the amounts which for the purposes of the Income Tax Acts are or fall to be treated as emoluments received by an earner from any employment shall be determined (subject to paragraph (b) below) disregarding sections 198, 201, 201AA and 332(3) of the 1988 Act (deductions for expenses etc.); but (b) where an amount which is deductible in respect of any matter under any of those sections is at least equal to the whole of any corresponding amount which (but for this paragraph) would fall by reference to that matter to be included in those emoluments, the whole of the corresponding amount shall be treated as not so included. (8) The Treasury may by regulations— (a) modify the effect of subsection (7) above by adding any enactment contained in the Income Tax Acts to the list of sections of the 1988 Act contained in paragraph (a) of that subsection; or (b) make such amendments of subsection (7) above as appear to them to be necessary or expedient in consequence of any alteration of the provisions of the Income Tax Acts relating to the charge to tax under Schedule E. (9) The Treasury may by regulations provide— (a) for Class 1A contributions not to be payable, in prescribed circumstances, by prescribed persons or in respect of prescribed persons or emoluments; (b) for reducing Class 1A contributions in prescribed circumstances. (10) In this section “the 1988 Act” means the Income and Corporation Taxes Act 1988.

  • (3) For subsection (6) of section 4 of that Act (power to treat emoluments in respect of share acquisitions etc. as earnings) there shall be substituted—

(6) Regulations may make provision for the purposes of this Part— (a) for treating any amount on which an employed earner is chargeable to income tax under Schedule E as remuneration derived from the earner’s employment; and (b) for treating any amount which in accordance with regulations under paragraph (a) above constitutes remuneration as an amount of remuneration paid, at such time as may be determined in accordance with the regulations, to or for the benefit of the earner in respect of his employment.

  • (4) In paragraph 5(b) of Schedule 1 to that Act (power to modify section 10 for cases where a car is made available by reason of more than one employment), for “a car is made available” there shall be substituted “something is provided or made available”.
  • (5) In paragraph 8(1)(ia) of that Schedule (power to provide by regulations for repayment in prescribed cases of the whole or a part of a Class 1B contribution), after “part” there shall be inserted “of a Class 1A or”.
  • (6) In section 114(4) of the Social Security Administration (Northern Ireland) Act 1992 (proof of previous offences relating to Class 1A contributions), for “car” there shall be substituted “amount”.
  • (7) In section 142(5)(c) of that Act (appropriate health service allocation of Class 1A contributions), for “cash equivalents of the benefits of the cars and car fuel” there shall be substituted “emoluments”.
  • (8) This section shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.
  • (9) Regulations made by statutory instrument under any power conferred by virtue of this section may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).

Third party providers of benefits in kind: Northern Ireland

79
  • (1) After section 10 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 there shall be inserted—

(10ZA) (1) This section applies, where— (a) a Class 1A contribution is payable for any tax year in respect of the whole or any part of an emolument received by an earner; (b) the emolument, in so far as it is one in respect of which such a contribution is payable, consists in a benefit provided for the earner or a member of his family or household; (c) the person providing the benefit is a person other than the person (“the relevant employer”) by whom, but for this section, the Class 1A contribution would be payable in accordance with section 10(2) above; and (d) the provision of the benefit by that other person has not been arranged or facilitated by the relevant employer. (2) For the purposes of this Act if— (a) the person providing the benefit pays an amount for the purpose of discharging any liability of the earner to income tax for any tax year, and (b) the income tax in question is tax chargeable in respect of the provision of the benefit or of the making of the payment itself, the amount of the payment shall be treated as if it were an emolument consisting in the provision of a benefit to the earner in that tax year and falling, for the purposes of Class 1 contributions, to be left out of account in the computation of the earnings paid to or for the benefit of the earner. (3) Subject to subsection (4) below, the liability to pay any Class 1A contribution in respect of— (a) the benefit provided to the earner, and (b) any further benefit treated as so provided in accordance with subsection (2) above, shall fall on the person providing the benefit, instead of on the relevant employer. (4) Subsection (3) above applies in the case of a Class 1A contribution for the tax year beginning with 6th April 2000 only if the person providing the benefit in question gives notice in writing to the Inland Revenue on or before 6th July 2001 that he is a person who provides benefits in respect of which a liability to Class 1A contributions is capable of falling by virtue of this section on a person other than the relevant employer. (5) The Treasury may by regulations make provision specifying the circumstances in which a person is or is not to be treated for the purposes of this Act as having arranged or facilitated the provision of any benefit. (6) In this section references to a member of a person’s family or household shall be construed in accordance with section 168(4) of the Income and Corporation Taxes Act 1988. (10ZB) (1) In section 10ZA above references to the provision of a benefit include references to the provision of a non-cash voucher. (2) Where— (a) a non-cash voucher is received by any person from employment to which Chapter II of Part V of the Income and Corporation Taxes Act 1988 does not apply, and (b) the case would be one in which the conditions in section 10ZA(1)(a) to (d) above would be satisfied in relation to the provision of that voucher if that Chapter did apply to that employment, sections 10 and 10ZA above shall have effect in relation to the provision of that voucher, and to any such payment in respect of the provision of that voucher as is mentioned in section 10ZA(2) above, as if that employment were employment to which that Chapter applied. (3) In this section “non-cash voucher” has the same meaning as in section 141 of the Income and Corporation Taxes Act 1988.

  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) Subsection (1) shall have effect in relation to the tax year beginning with 6th April 2000 and subsequent tax years.
  • (4) Regulations made by virtue of this section under section 10ZA(5) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 may be made so as to have retrospective effect in relation to any time in the tax year in which they are made (including, in the case of regulations made in the tax year in which this Act is passed, any time in that tax year before the passing of this Act).
80
  • (1) Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (supplementary provisions relating to contributions) shall be amended in accordance with subsections (2) to (5).
  • (2) In paragraph 7(2)(b) (application of sections 100 to 100D and 102 to 104 of the Taxes Management Act 1970 in relation to certain penalties), for “104” there shall be substituted “105”.
  • (3) For sub-paragraph (2)(e) of paragraph 7B (power to provide for interest to be charged on late payment in the case of payment outside the PAYE system) there shall be substituted—

(e) require interest to be paid on contributions that are not paid by the due date, and provide for determining the date from which such interest is to be calculated;

.

  • (4) After sub-paragraph (5) of that paragraph there shall be inserted—

(5A) Regulations under this paragraph may, in relation to any penalty imposed by such regulations, make provision applying (with or without modifications) any enactment applying for the purposes of income tax that is contained in Part X of the Taxes Management Act 1970 (penalties).

  • (5) After that paragraph there shall be inserted—

(7BA) The Inland Revenue may by regulations provide for amounts in respect of contributions or interest that fall to be paid or repaid in accordance with any regulations under this Schedule to be set off, or to be capable of being set off, in prescribed circumstances and to the prescribed extent, against any such liabilities under regulations under this Schedule of the person entitled to the payment or repayment as may be prescribed.

  • (6) In Article 7(1) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (decisions to be made by an Inland Revenue officer and appealable under Article 10)—
  • (a) sub-paragraph (j) (interest under regulations made by virtue of paragraph 7B(2)(e) of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992) shall cease to have effect; and
  • (b) in sub-paragraph (l), for “sub-paragraphs (j) and (k)” there shall be substituted “sub-paragraph (k)”, and the words “amount of interest or” shall be omitted.
  • (7) Subsection (6) has effect in relation to interest accruing on sums becoming due in respect of the tax year beginning with 6th April 2000 or any subsequent tax year.

Liability of earner for secondary contributions: Northern Ireland

81
  • (1) In paragraph 3 of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (prohibition on deduction or recovery of Class 1 contributions), sub-paragraph (2) shall be omitted.
  • (2) After that paragraph there shall be inserted—

(3A) (1) Subject to sub-paragraph (2) below, a person who is or has been liable to pay any secondary Class 1 or any Class 1A or Class 1B contributions shall not— (a) make, from earnings paid by him, any deduction in respect of any such contributions for which he or any other person is or has been liable; (b) otherwise recover any such contributions (directly or indirectly) from any person who is or has been a relevant earner; or (c) enter into any agreement with any person for the making of any such deduction or otherwise for the purpose of so recovering any such contributions. (2) Sub-paragraph (1) above does not apply to the extent that an agreement between— (a) a secondary contributor, and (b) any person (“the earner”) in relation to whom the secondary contributor is, was or will be such a contributor in respect of the contributions to which the agreement relates, allows the secondary contributor to recover (whether by deduction or otherwise) the whole or any part of any secondary Class 1 contribution payable in respect of a gain that is treated as remuneration derived from that earner’s employment by virtue of section 4(4)(a) above. (3) Sub-paragraph (2) above does not authorise any recovery (whether by deduction or otherwise)— (a) in pursuance of any agreement entered into before 19th May 2000; or (b) in respect of any liability to a contribution arising before the day of the passing of the Child Support, Pensions and Social Security Act 2000. (4) In this paragraph— - “agreement” includes any arrangement or understanding (whether or not legally enforceable); and - “relevant earner”, in relation to a person who is or has been liable to pay any contributions, means an earner in respect of whom he is or has been so liable. (3B) (1) This paragraph applies where— (a) an election is jointly made by— (i) a secondary contributor, and (ii) a person (“the earner”) in relation to whom the secondary contributor is or will be such a contributor in respect of contributions on share option gains by the earner, for the whole or a part of any liability of the secondary contributor to contributions on any such gains to be transferred to the earner; and (b) the election is one in respect of which the Inland Revenue have, before it was made, given by notice to the secondary contributor their approval to both— (i) the form of the election; and (ii) the arrangements made in relation to the proposed election for securing that the liability transferred by the election will be met. (2) Any liability which— (a) arises while the election is in force, and (b) is a liability to pay the contributions on share option gains by the earner, or the part of them, to which the election relates, shall be treated for the purposes of this Act, the Administration Act and Part III of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 as a liability falling on the earner, instead of on the secondary contributor. (3) Subject to sub-paragraph (7)(b) below, an election made for the purposes of sub-paragraph (1) above shall continue in force from the time when it is made until whichever of the following first occurs, namely— (a) it ceases to have effect in accordance with its terms; (b) it is revoked jointly by both parties to the election; (c) notice is given to the earner by the secondary contributor terminating the effect of the election. (4) An approval given to the secondary contributor for the purposes of sub-paragraph (1)(b) above may be given either— (a) for an election to be made by the secondary contributor and a particular person; or (b) for all elections to be made, or to be made in particular circumstances, by the secondary contributor and particular persons or by the secondary contributor and persons of a particular description. (5) The grounds on which the Inland Revenue shall be entitled to refuse an approval for the purposes of sub-paragraph (1)(b) above shall include each of the following— (a) that it appears to the Inland Revenue that adequate arrangements have not been made for securing that the liabilities transferred by the proposed election or elections will be met by the person or persons to whom they would be so transferred; and (b) that it appears to the Inland Revenue that they do not have sufficient information to determine whether or not grounds falling within paragraph (a) above exist. (6) If, at any time after they have given an approval for the purposes of sub-paragraph (1)(b) above, it appears to the Inland Revenue— (a) that the arrangements that were made or are in force for securing that liabilities transferred by elections to which the approval relates are met are proving inadequate or unsatisfactory in any respect, or (b) that any election to which the approval relates has resulted, or is likely to result, in the avoidance or non-payment of the whole or any part of any secondary Class 1 contributions, the Inland Revenue may withdraw the approval by notice to the secondary contributor. (7) The withdrawal by the Inland Revenue of any approval given for the purposes of sub-paragraph (1)(b) above— (a) may be either general or confined to a particular election or to particular elections; and (b) shall have the effect that the election to which the withdrawal relates has no effect on contributions on share option gains in respect of any right to acquire shares obtained after— (i) the date on which notice of the withdrawal of the approval is given; or (ii) such later date as the Inland Revenue may specify in that notice. (8) Where the Inland Revenue have refused or withdrawn their approval for the purposes of sub-paragraph (1)(b) above, the person who applied for it or, as the case may be, to whom it was given may appeal to the Special Commissioners against the Inland Revenue’s decision. (9) On an appeal under sub-paragraph (8) above the Special Commissioners may— (a) dismiss the appeal; (b) remit the decision appealed against to the Inland Revenue with a direction to make such decision as the Special Commissioners think fit; or (c) in the case of a decision to withdraw an approval, quash that decision and direct that that decision is to be treated as never having been made. (10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respect of gains realised before it was made. (11) Regulations made by the Inland Revenue may make provision with respect to the making of elections for the purposes of this paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, in particular— (a) prescribe the matters that must be contained in such an election; (b) provide for the manner in which such an election is to be capable of being made and of being confined to particular liabilities or the part of particular liabilities; and (c) provide for the making of applications for such approvals and for the manner in which those applications are to be dealt with. (12) Where— (a) an election is made under this paragraph before the end of the period of three months beginning with the date of the passing of the Child Support, Pensions and Social Security Act 2000, and (b) that election is expressed to relate to liabilities for contributions arising on or after 19th May 2000 and before the making of the election, this paragraph shall have effect in relation to those liabilities as if sub-paragraph (2) above provided for them to be deemed to have fallen on the earner (instead of on the secondary contributor); and the secondary contributor shall accordingly be entitled to reimbursement from the earner for any payment made by that contributor in or towards the discharge of any of those liabilities. (13) In this paragraph references to contributions on share option gains by the earner are references to any secondary Class 1 contributions payable in respect of a gain that is treated as remuneration derived from the earner’s employment by virtue of section 4(4)(a) above. (14) In this paragraph “the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts.

  • (3) In section 6(4) of that Act (persons by whom Class 1 contributions are payable), for the words from “paragraph 3” onwards there shall be substituted “paragraphs 3 to 3B of Schedule 1 to this Act.”
  • (4) In paragraph 8(1) of Schedule 1 to that Act (general regulations), after paragraph (c) there shall be inserted—

(ca) for requiring a secondary contributor to notify a person to whom any of his liabilities are transferred by an election under paragraph 3B above of— (i) any transferred liability that arises; (ii) the amount of any transferred liability that arises; and (iii) the contents of any notice of withdrawal by the Inland Revenue of any approval that relates to that election;

.

  • (5) In Article 7(1) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (decisions to be taken by officers of the Inland Revenue), after sub-paragraph (i) there shall be inserted—

(ia) to decide whether to give or withdraw an approval for the purposes of paragraph 3B(1)(b) of Schedule 1 to the Contributions and Benefits Act;

.

  • (6) In Article 9 of that Order (regulations about varying or superseding decisions), at the beginning of paragraph (1) there shall be inserted “Subject to paragraph (2A) below,”, and after paragraph (2) there shall be inserted—

(2A) The decisions in relation to which provision may be made by regulations under this Article shall not include decisions falling within Article 7(1)(ia) of this Order.

  • (7) In Article 11(4) of that Order (appeals to be heard by General Commissioners), after “Subject to” there shall be inserted “paragraph 3B(8) of Schedule 1 to the Contributions and Benefits Act (which provides for appeals under that paragraph to be heard by the Special Commissioners), to”.

Part V — Miscellaneous and supplemental

Miscellaneous

Tests for determining parentage

82
  • (1) Part III of the Family Law Reform Act 1969 (tests for determining parentage) shall be amended in accordance with subsections (2) to (4).
  • (2) In section 20 (power of the court to require tests)—
  • (a) for subsections (1A) and (1B) (nomination of the person by whom tests are to be carried out) there shall be substituted—

(1A) Tests required by a direction under this section may only be carried out by a body which has been accredited for the purposes of this section by— (a) the Lord Chancellor, or (b) a body appointed by him for the purpose.

;

  • (b) in subsection (2)—
  • (i) for “person responsible for” there shall be substituted “individual”, and
  • (ii) after “this section” there shall be inserted “(“the tester”)”;
  • (c) in subsection (4), for “the person who made the report” there shall be substituted “the tester”; and
  • (d) in subsection (5)—
  • (i) for “the person responsible for carrying out the tests taken for the purpose of giving effect to the direction, or any” there shall be substituted “the tester, or any other”,
  • (ii) for “that person” there shall be substituted “the tester or that other person”, and
  • (iii) after “and where” there shall be inserted “the tester or”.
  • (3) In section 21 (consents, etc, required for the taking of blood samples), in subsection (3), for the words “if the person who has the care and control of him consents” there shall be substituted—

(a) if the person who has the care and control of him consents; or (b) where that person does not consent, if the court considers that it would be in his best interests for the sample to be taken.

  • (4) In section 22(1) (power of Lord Chancellor to make further provision relating to tests for determining parentage)—
  • (a) in paragraph (a) (power to provide that bodily samples are not to be taken except by such medical practitioners as may be appointed by the Lord Chancellor), for the words from “such medical practitioners” to the end there shall be substituted “registered medical practitioners or members of such professional bodies as may be prescribed by the regulations;”, and
  • (b) for paragraph (e) (power to provide that scientific tests are not to be carried out except by persons appointed by the Lord Chancellor) there shall be substituted—

(e) prescribe conditions which a body must meet in order to be eligible for accreditation for the purposes of section 20 of this Act;

.

  • (5) The amendments made by this section shall not have effect in relation to any proceedings pending at the commencement of this section.

Declarations of status

83
  • (1) Part III of the Family Law Act 1986 (declarations of status) shall be amended as follows.
  • (2) After section 55 there shall be inserted—

(55A) (1) Subject to the following provisions of this section, any person may apply to the High Court, a county court or a magistrates’ court for a declaration as to whether or not a person named in the application is or was the parent of another person so named. (2) A court shall have jurisdiction to entertain an application under subsection (1) above if, and only if, either of the persons named in it for the purposes of that subsection— (a) is domiciled in England and Wales on the date of the application, or (b) has been habitually resident in England and Wales throughout the period of one year ending with that date, or (c) died before that date and either— (i) was at death domiciled in England and Wales, or (ii) had been habitually resident in England and Wales throughout the period of one year ending with the date of death. (3) Except in a case falling within subsection (4) below, the court shall refuse to hear an application under subsection (1) above unless it considers that the applicant has a sufficient personal interest in the determination of the application (but this is subject to section 27 of the Child Support Act 1991). (4) The excepted cases are where the declaration sought is as to whether or not— (a) the applicant is the parent of a named person; (b) a named person is the parent of the applicant; or (c) a named person is the other parent of a named child of the applicant. (5) Where an application under subsection (1) above is made and one of the persons named in it for the purposes of that subsection is a child, the court may refuse to hear the application if it considers that the determination of the application would not be in the best interests of the child. (6) Where a court refuses to hear an application under subsection (1) above it may order that the applicant may not apply again for the same declaration without leave of the court. (7) Where a declaration is made by a court on an application under subsection (1) above, the prescribed officer of the court shall notify the Registrar General, in such a manner and within such period as may be prescribed, of the making of that declaration.

  • (3) Section 58(5)(b) (prohibition of declarations of illegitimacy) shall be omitted.
  • (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) Schedule 8 (which makes amendments consequential on subsection (1)) shall have effect.
  • (6) Nothing in this Act shall affect any proceedings pursuant to an application under—
  • (a) section 56(1)(a) of the Family Law Act 1986, or
  • (b) section 27 of the Child Support Act 1991,

which are pending immediately before the commencement of this section.

Supplemental

Expenses

84

There shall be paid out of money provided by Parliament—

  • (a) any expenditure incurred by the Secretary of State for or in connection with the carrying out of his functions under this Act; and
  • (b) any increase attributable to this Act in the sums which are payable out of money so provided under any other Act.

Repeals

85
  • (1) The enactments mentioned in Schedule 9 (which include some spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.
  • (2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained, or referred to, in the notes set out in that Schedule.

Commencement and transitional provisions

86
  • (1) This section applies to the following provisions of this Act—
  • (a) Part I (other than section 24);
  • (b) Part II (other than sections 38 and 39 and paragraphs 4 to 6, 8(1), (3) and (4) and 13 of Schedule 5);
  • (c) Part III;
  • (d) sections 82 and 83 and Schedule 8;
  • (e) Parts I to VII and IX of Schedule 9.
  • (2) The provisions of this Act to which this section applies shall come into force on such day as may be appointed by order made by statutory instrument; and different days may be appointed under this section for different purposes.
  • (3) The power to make an order under subsection (2) shall be exercisable—
  • (a) except in a case falling within paragraph (b), by the Secretary of State; and
  • (b) in the case of an order bringing into force any of the provisions of sections 82 and 83, Schedule 8 or Part IX of Schedule 9, by the Lord Chancellor.
  • (4) In the case of Part I (other than section 24) and of sections 62 to 66, the power under subsection (2) to appoint different days for different purposes includes power to appoint different days for different areas.

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