1997 No. 820
The Social Security (Contributions) Amendment (No. 3) Regulations 1997
13th March 1997
Laid before Parliament
14th March 1997
Coming into force
6th April 1997
The Secretary of State for Social Security, with the concurrence of the Inland Revenue in so far as required(1), in exercise of powers conferred by sections 3(2) and (3), 122(1) and 175(1) to (3) of, and paragraph 6(1) of Schedule 1 to, the Social Security Contributions and Benefits Act 1992(2) and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it(3), hereby makes the following Regulations:
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Social Security (Contributions) Amendment (No. 3) Regulations 1997 and shall come into force on 6th April 1997.
(2) In these Regulations “the principal Regulations” means the Social Security (Contributions) Regulations 1979(4) and “Schedule 1” means Schedule 1 to the principal Regulations (containing the provisions of the Income Tax (Employments) Regulations 1973(5) as (with extensions and modifications) they apply to earnings-related contributions and Class 1A contributions under the Social Security Contributions and Benefits Act 1992(6)).
Amendment of regulation 19 of the principal Regulations
2.—(1) Paragraph (1) of regulation 19 of the principal Regulations (payments to be disregarded)(7) shall be amended in accordance with the following provisions of this regulation.
(2) In sub-paragraphs (w) and (x) for “pilot”, substitute “(including a pilot)”.
(3) After sub-paragraph (y), add—
“(z)a payment by way of an allowance—
(i)which by virtue of section 319 of the Income and Corporation Taxes Act 1988 (Crown Servants: foreign service allowance)(8) is not regarded as income for any income tax purpose; or
(ii)made to any person in the service of the Commonwealth War Graves Commission or the British Council with a view to compensating him for the extra cost of having to live outside the United Kingdom in order to perform his duties.”.
Amendment of Schedule 1
3. In regulation 26D(5)(b) of Schedule 1 (payment of Class 1A contributions on succession to, or cessation of, business)(9) for “6th April or 6th May”, substitute “6th April, 6th May or 6th June”.
Signed by authority of the Secretary of State for Social Security.
A. J. B. Mitchell
Parliamentary Under-Secretary of State,
Department of Social Security
13th March 1997
The Commissioners of Inland Revenue hereby concur.
A. M. W. Battishill
G. H. Bush
Two of the Commissioners of Inland Revenue
13th March 1997
(This note is not part of the Regulations)
These Regulations further amend the Social Security (Contributions) Regulations 1979 (“the principal Regulations”).
Regulation 2 amends regulation 19(1) of the principal Regulations (payments to be disregarded). It widens the disregard in respect of Jobmatch Schemes to cover the permanent Scheme as well as pilots (regulation 19(1)(w) and (x)) and adds a new disregard in respect of allowances which are not taxable income by virtue of section 319 of the Income and Corporation Taxes Act 1988, and similar allowances paid to those in the service of the Commonwealth War Graves Commission and the British Council.
Regulation 3 amends regulation 26D of Schedule 1 to the principal Regulations to provide new time limits for the payment, by a former employer, of Class 1A contributions upon the succession to, or cessation of, a business.
These Regulations do not impose any costs on business.
See the Social Security Contributions and Benefits Act 1992 (c. 4), Schedule 1, paragraph 6(1).
Section 122(1) is cited because of the meaning ascribed to the word “prescribe”.
See the Social Security Administration Act 1992 (c. 5), section 173(1)(b).
S.I. 1979/591; the relevant amending instruments are S.I. 1992/1440 and 1996/700.
S.I. 1973/334; this and its subsequent amending instruments were consolidated as S.I. 1993/744.
The Social Security Contributions and Benefits Act 1992 consolidated, inter alia, the Social Security Act 1975 (c. 14) (“the 1975 Act”). Schedule 1 to the Social Security (Contributions) Regulations 1979 which was made, inter alia, pursuant to powers in Schedule 1 to the 1975 Act, contained provisions of the Income Tax (Employments) Regulations 1973 as they applied (with extensions and modifications) to earnings-related and Class 1A contributions under the 1975 Act.
The relevant amending instrument is S.I. 1996/700.
1988 c. 1.
Regulation 26D was inserted by regulation 9 of S.I. 1992/1440.