1 Citation and commencement

These Regulations may be cited as the Social Security (Miscellaneous Amendments) (No 3) Regulations 2007 and shall come into force on 16th July 2007.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see above.

State Pensions94 Pensions Law94

2 Amendment of the Income Support (General) Regulations 1987

2Amendment of the Income Support (General) Regulations 1987

(1)    The Income Support (General) Regulations 1987 are amended as follows.

(2)    In regulation 2(1) (interpretation)—

(a)    in the definition of “pension fund holder”—

(i)    for “retirement annuity contract” substitute “an occupational pension scheme”;

(ii)    omit “or contract”;

(b)    for the definition of “personal pension scheme”, substitute—

““personal pension scheme” means—

(a)    a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993;

(b)    an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;

(c)    a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)    omit the definition of “retirement annuity contract”;

(d)    in the definition of “war widower's pension”, for “section 315(2)(e) of the Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.

(3)    In regulation 38 (calculation of net profit of self-employed earners), in paragraphs (1)(b)(ii), (3)(c) and (9)(b) omit “a retirement annuity contract or”.

(4)    In regulation 39(1) (deduction of tax and contributions for self-employed earners)—

(a)    for “personal relief” in each place substitute “personal allowance”;

(b)    for “sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970” substitute “section 257(1) of the Income and Corporation Taxes Act 1988”.

(5)    In regulation 39D (deduction in respect of tax for participants in the self-employment route)—

(a)    for paragraph (1)(b) substitute—

“(b)    the personal allowance applicable to the person receiving assistance under the self-employment route by virtue of section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowance) is allowable against that income;”;

(b)    in paragraph (2), for “personal relief” substitute “personal allowance”.

(6)    In regulation 42 (notional income)—

(a)    in paragraph (2)(g), omit “, retirement annuity contract”;

(b)    in paragraph (2ZA)(a), omit “, a retirement annuity contract”;

(c)    for paragraph (2A), substitute—

“(2A)    This paragraph applies where a person aged not less than 60—

(a)    is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(2AA)    Where paragraph (2A) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(d)    in paragraph (2B), for “to which either head (2A)(a)(i) or (ii)” substitute “where paragraph (2A)(c)(i) or (ii)”;

(e)    in paragraph (2C)—

(i)    for “to which either head (2A)(a)(iii) or sub-paragraph (2A)(b)” substitute “where paragraph (2A)(c)(iii)”;

(ii)    omit “or retirement annuity contract”;

(f)    in paragraph (8)(a)—

(i)    for “personal relief” in each place substitute “personal allowance”;

(ii)    for “sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970” substitute “section 257(1) of the Income and Corporation Taxes Act 1988”.

(7)    In regulation 51(2)(d) (notional capital), omit “or retirement annuity contract”.

(8)    In paragraph 23A of Schedule 10 (capital to be disregarded), omit “or retirement annuity contract”.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Income Tax Allowances, Deductions & Reliefs94 Pensions Law95 Company Law & Business Entities93 Companies & Corporate Bodies93 Income Tax95 State Pensions94 Pensions Taxation95 Pensions Income95 Council Tax99 Employment & Labour Law94 Tax Law99 Personal Taxes95 Council Tax Benefit99 Employment Taxes94 Employment Income94

3 Amendment of the Jobseeker's Allowance Regulations 1996

3Amendment of the Jobseeker's Allowance Regulations 1996

(1)    The Jobseeker's Allowance Regulations 1996 are amended as follows.

(2)    In regulation 1(3) (interpretation), in the definition of “war widower's pension” insert at the end “or a pension or allowance for a widower or surviving civil partner granted under any scheme mentioned in section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) Act 2003”.

(3)    In regulation 102(1) (deduction of tax and contributions for self-employed earners), regulation 102D (deduction in respect of tax for participants in the self-employment route) and regulation 105(15) (notional income)—

(a)    for “personal relief” or “personal reliefs” in each place substitute “personal allowance”;

(b)    for “sections 257(1), 257A(1) and 259” in each place substitute “section 257(1)”.

(4)    In regulation 105 (notional income)—

(a)    for paragraph (3), substitute—

“(3)    This paragraph applies where a person aged not less than 60—

(a)    is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(3A)    Where paragraph (3) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(b)    in paragraph (4) for “to which either head (3)(a)(i) or (ii)” substitute “where paragraph (3)(c)(i) or (ii)”;

(c)    in paragraph (5), for “to which either head (iii) of paragraph (3)(a), or paragraph (3)(b)” substitute “where paragraph (3)(c)(iii)”;

(d)    in paragraph (16) in the definition of “pension fund holder”, after “personal pension scheme” insert “or an occupational pension scheme”.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Income Tax Allowances, Deductions & Reliefs92 Pensions Law96 Income Tax96 State Pensions94 Pensions Taxation96 Pensions Income96 Council Tax99 Employment & Labour Law94 Tax Law99 Personal Taxes96 Council Tax Benefit99 Employment Taxes94 Employment Income94

4 Amendment of the Housing Benefit Regulations 2006

4Amendment of the Housing Benefit Regulations 2006

(1)    The Housing Benefit Regulations 2006 are amended as follows.

(2)    In regulation 2(1) (interpretation)—

(a)    in the definition of “pension fund holder”—

(i)    for “retirement annuity contract” substitute “an occupational pension scheme”, and

(ii)    omit “or contract”;

(b)    for the definition of “personal pension scheme”, substitute—

““personal pension scheme” means—

(a)    a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993;

(b)    an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;

(c)    a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)    omit the definition of “retirement annuity contract”.

(3)    In regulation 38(12) (calculation of net profit of self-employed earners), omit “a retirement annuity contract or”.

(4)    In regulation 42 (notional income)—

(a)    in paragraph (2)(c), omit “, retirement annuity contract”;

(b)    for paragraph (3) substitute—

“(3)    This paragraph applies where a person aged not less than 60—

(a)    is a member of, or a person deriving entitlement to a pension under, a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(3A)    Where paragraph (3) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(c)    in paragraph (4) for “to which either head (3)(a)(i) or (ii)” substitute “where paragraph (3)(c)(i) or (ii)”;

(d)    in paragraph (5)—

(i)    for “to which either paragraph (3)(a)(iii) or paragraph (3)(b)” substitute “where paragraph (3)(c)(iii)”;

(ii)    omit “or retirement annuity contract”.

(5)    In regulation 49(2)(d) (notional capital), omit “, retirement annuity contract”.

(6)    In regulation 86 (evidence and information)—

(a)    in paragraph (5), omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)    in paragraphs (5)(b) and (6), omit “or retirement annuity contract”;

(c)    in paragraph (7)(b)(ii), omit “or a retirement annuity contract,”.

(7)    In paragraph 32 of Schedule 6 (capital to be disregarded), omit “or retirement annuity contract”.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Pensions Law94 Company Law & Business Entities94 Council Tax Benefit96 Companies & Corporate Bodies94 State Pensions94 Council Tax96 Tax Law96

5 Amendment of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006

5Amendment of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006

(1)    The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 are amended as follows.

(2)    In regulation 2(1) (interpretation)—

(a)    in the definition of “pension fund holder”—

(i)    for “retirement annuity contract” substitute “an occupational pension scheme”;

(ii)    omit “or contract”;

(b)    for the definition of “personal pension scheme”, substitute—

““personal pension scheme” means—

(a)    a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993;

(b)    an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;

(c)    a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)    omit the definition of “retirement annuity contract”.

(3)    In regulation 39(11) (calculation of net profit of self-employed earners), omit “a retirement annuity contract or”.

(4)    In regulation 41 (notional income)—

(a)    for paragraph (4) substitute—

“(4)    This paragraph applies where a person aged not less than 60—

(a)    is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(4A)    Where paragraph (4) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(b)    in paragraph (5), for “to which either head (i) or (ii) of paragraph (4)(a)” substitute “where paragraph (4)(c)(i) or (ii)”;

(c)    in paragraph (6)—

(i)    for “to which either head (iii) of paragraph (4)(a) or paragraph (4)(b)” substitute “where paragraph (4)(c)(iii)”;

(ii)    omit “or retirement annuity contract”.

(5)    In regulation 67 (evidence and information)—

(a)    in paragraph (5), omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)    in paragraphs (5)(b) and (6), omit “ or retirement annuity contract”;

(c)    in paragraph (7)(b)(ii), omit “or a retirement annuity contract,”.

(6)    In Schedule 6 (capital to be disregarded), omit paragraph 25.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Pensions Law94 Company Law & Business Entities94 Benefits96 Companies & Corporate Bodies94 Personal & Occupational Pensions95 State Pensions94 Council Tax96 Welfare, Housing & Social Security Law96 Tax Law96 Council Tax Benefit96

6 Amendment of the Council Tax Benefit Regulations 2006

6Amendment of the Council Tax Benefit Regulations 2006

(1)    The Council Tax Benefit Regulations 2006 are amended as follows.

(2)    In regulation 2(1) (interpretation)—

(a)    in the definition of “pension fund holder”—

(i)    for “retirement annuity contract” substitute “an occupational pension scheme”;

(ii)    omit “or contract”;

(b)    for the definition of “personal pension scheme”, substitute—

““personal pension scheme” means—

(a)    a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993;

(b)    an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;

(c)    a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)    omit the definition of “retirement annuity contract”.

(3)    In regulation 28(12) (calculation of net profit of self-employed earners), omit “a retirement annuity contract or”.

(4)    In regulation 32 (notional income)—

(a)    in paragraph (2)(c), omit “, retirement annuity contract”;

(b)    for paragraph (3) substitute—

“(3)    This paragraph applies where a person aged not less than 60—

(a)    is a member of, or a person deriving entitlement to a pension under, a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(3A)    Where paragraph (3) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(c)    in paragraph (4) for “to which either head (3)(a)(i) or (ii)” substitute “where paragraph (3)(c)(i) or (ii)”;

(d)    in paragraph (5)—

(i)    for “to which either head (3)(a)(iii) or sub-paragraph (3)(b)” substitute “where paragraph (3)(c)(iii)”;

(ii)    omit “or retirement annuity contract”.

(5)    In regulation 39(2)(d) (notional capital), omit “, retirement annuity contract”.

(6)    In regulation 72 (evidence and information)—

(a)    in paragraph (5), omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)    in paragraphs (5)(b) and (6), omit “ or retirement annuity contract”;

(c)    in paragraph (7)(b)(ii), omit “or a retirement annuity contract,”.

(7)    In paragraph 32 of Schedule 5 (capital to be disregarded), omit “or retirement annuity contract”.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Pensions Law94 Company Law & Business Entities92 Council Tax Benefit96 Companies & Corporate Bodies92 State Pensions94 Council Tax96 Tax Law96

7 Amendment of the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006

7Amendment of the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006

(1)    The Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 is amended as follows.

(2)    In regulation 2(1) (interpretation)—

(a)    in the definition of “pension fund holder”—

(i)    for “retirement annuity contract” substitute “an occupational pension scheme”;

(ii)    omit “or contract”;

(b)    for the definition of “personal pension scheme”, substitute—

““personal pension scheme” means—

(a)    a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993;

(b)    an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988 or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004;

(c)    a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;”;

(c)    omit the definition of “retirement annuity contract”.

(3)    In regulation 29(11) (calculation of net profit of self-employed earners), omit “a retirement annuity contract or”.

(4)    In regulation 31 (notional income)—

(a)    for paragraph (4) substitute—

“(4)    This paragraph applies where a person aged not less than 60—

(a)    is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

(b)    fails to purchase an annuity with the funds available in that scheme; and

(c)    either—

(i)    defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

(ii)    fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

(iii)    income withdrawal is not available to him under that scheme.

(4A)    Where paragraph (4) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(b)    in paragraph (5), for “to which either head (i) or (ii) of paragraph (4)(a)” substitute “where paragraph (4)(c)(i) or (ii)”;

(c)    in paragraph (6)—

(i)    for “to which either head (iii) of paragraph (4)(a) or paragraph (4)(b)” substitute “either paragraph (4)(c)(iii)”;

(ii)    omit “or retirement annuity contract”.

(5)    In regulation 57 (evidence and information)—

(a)    in paragraph (5), omit “or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract,”;

(b)    in paragraphs (5)(b) and (6), omit “or retirement annuity contract”;

(c)    in paragraph (7)(b)(ii), omit “or a retirement annuity contract,”.

(6)    In Schedule 4 (capital disregards), omit paragraph 25.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Pensions Law94 Company Law & Business Entities92 Benefits96 Companies & Corporate Bodies92 Personal & Occupational Pensions94 State Pensions94 Council Tax96 Welfare, Housing & Social Security Law96 Tax Law96 Council Tax Benefit96

8 Amendment of the Social Security (Credits) Regulations 1975

8Amendment of the Social Security (Credits) Regulations 1975

(1)    The Social Security (Credits) Regulations 1975 are amended as follows.

(2)    In regulation 2 (definitions) in paragraph (a) of the definition of “reckonable year”, after “widowed mother's allowance,” insert “widowed parent's allowance, bereavement benefits,”.

(3)    In regulation 8B(2)(a)(i) (which specifies weeks in respect of which a person is entitled to be credited with earnings in respect of incapacity for work), omit the words from “or would” to the end.

NOTES
Initial Commencement
Specified date

Specified date: 16 July 2007: see reg 1.

Pensions Law94 Council Tax Benefit96 State Pensions94 Council Tax96 Tax Law96

Signature

Signed by authority of the Secretary of State for Work and Pensions

James Plaskitt

Parliamentary Under-Secretary of State,

Department for Work and Pensions

19th June 2007

Pensions Law93 Council Tax Benefit99 State Pensions93 Council Tax99 Tax Law99

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Regulations)

These Regulations amend—

the Income Support (General) Regulations 1987 (SI 1987/1967),

the Jobseeker's Allowance Regulations 1996 (SI 1996/207),

the Housing Benefit Regulations 2006 (SI 2006/213),

the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214),

the Council Tax Benefit Regulations 2006 (SI 2006/215), and

the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/216),

in consequence of changes to the tax system in relation to pensions schemes made by Part 4 of the Finance Act 2004.

These Regulations also amend—

the Income Support (General) Regulations 1987 and the Jobseeker's Allowance Regulations 1995 so as to replace obsolete references (concerning personal reliefs and war widowers' pensions) under repealed provisions of the Income and Corporation Taxes Acts 1970 and 1988; and

the Social Security (Credits) Regulations 1975 (SI 1975/556) by inserting references to “widowed parent's allowance” and “bereavement benefits” in the definition of “reckonable year” in regulation 2 and by omitting superfluous words in regulation 8B(2).

A full Regulatory Impact Assessment has not been produced for this instrument because it has no impact on the costs of business, charities or voluntary bodies.

Pensions Law93 Welfare, Housing & Social Security Law99 Company Law & Business Entities92 Council Tax Benefit99 Benefits99 Companies & Corporate Bodies92 State Pensions93 Council Tax99 Tax Law99