The Tax Credits (Coronavirus, Miscellaneous Amendments) (No. 2) Regulations 2020

• Citation: S.I. 2020/941
• Sections: 3

Section 1 Citation and commencement

These Regulations may be cited as the Tax Credits (Coronavirus, Miscellaneous Amendments) (No. 2) Regulations 2020 and come into force on 25th September 2020.

Section 2 Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002

(1) The Tax Credits (Definition and Calculation of Income) Regulations 2002 are amended as follows.

(2) For regulation 6 (trading income) substitute—

Trading income

(6) The claimant’s (“C”) trading income is—

(a) the amount of C’s taxable profits for the tax year arising from—

(i) any trade carried on in the United Kingdom or elsewhere;

(ii) any profession or vocation the income from which does not fall under any other provision of these Regulations; or

(b) the amount of C’s taxable profits for the year arising from C’s share of the partnership trading or professional income where C is a partner in a trade, profession or vocation.

In this regulation “taxable profits” has the same meaning as it has in Part 2 of ITTOIA , but disregarding the relevant benefit amount in section 23E (tax treatment of relevant benefits) and Chapter 16 of that Part (averaging profits of farmers and creative artists).

(3) In regulation 19 (general disregards in the calculation of income) in Table 6 (sums disregarded in the calculation of income)—

(a) omit entry 36; and

(b) after entry 35 insert—

Section 3 Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

(1) The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 are amended as follows.

(2) In regulation 2 (interpretation) in the definition of “furloughed employee under the Coronavirus Job Retention Scheme” after “Coronavirus Act 2020” insert “or a person who is within paragraph 10.1 of the Schedule to the further direction given by the Chancellor under section 76 of that Act on 25th June 2020 ”.