Council Tax Reduction Scheme 2021/22 S13A and Schedule 1A of the Local Government Finance Act 1992
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Welwyn Hatfield Borough Council Council Tax Reduction Scheme 2021/22 S13A and Schedule 1a of the Local Government Finance Act 1992 Date of publication: April 2021 1.0 Introduction to the Council Tax Reduction Scheme ......................................................... 6 2.0 Interpretation – an explanation of the terms used within this scheme ............................ 13 3.0 Definition of non-dependant ........................................................................................... 22 4.0 Requirement to provide a National Insurance Number .................................................. 23 5.0 Persons who have attained the qualifying age for state pension credit .......................... 23 6.0 Remunerative work ......................................................................................................... 23 7.0 Persons treated as not being in Great Britain and Persons Subject to Immigration Control ..................................................................................................................................... 24 8.0 Temporary Absence (period of absence) ....................................................................... 27 9.0 Membership of a family .................................................................................................. 31 10.0 Circumstances in which a person is to be treated as responsible (or not responsible) for a child or young person. ................................................................................................. 31 11.0 Circumstances in which a child or young person is to be treated as being or not being a member of the household ............................................................................................... 32 12.0 Applicable amounts ........................................................................................................ 35 13.0 Polygamous marriages ................................................................................................... 35 14.0 Applicable amount: persons who are not pensioners who have an award of universal credit .............................................................................................................................. 36 15.0 Calculation of income and capital of members of applicant’s family and of a polygamous marriage ......................................................................................................................... 38 16.0 Circumstances in which capital and income of non-dependant is to be treated as applicant’s ....................................................................................................................... 39 17.0 Calculation of income on a weekly basis ........................................................................ 39 18.0 Treatment of child care charges ..................................................................................... 40 19.0 Average weekly earnings of employed earners .............................................................. 44 20.0 Average weekly earnings of self-employed earners ....................................................... 45 21.0 Average weekly income other than earnings .................................................................. 45 22.0 Calculation of average weekly income from tax credits .................................................. 45 23.0 Calculation of weekly income ......................................................................................... 46 24.0 Disregard of changes in tax, contributions etc. ............................................................... 46 25.0 Earnings of employed earners ........................................................................................ 46 26.0 Calculation of net earnings of employed earners ........................................................... 47 27.0 Earnings of self-employed earners ................................................................................. 48 28.0 Calculation of net profit of self-employed earners .......................................................... 49 29.0 Deduction of tax and contributions of self-employed earners ......................................... 51 30.0 Calculation of income other than earnings ..................................................................... 51 31.0 Capital treated as income ............................................................................................... 53 32.0 Notional income .............................................................................................................. 54 2 Welwyn Hatfield - Council Tax Reduction Scheme 2021/22 33.0 Capital limit ..................................................................................................................... 58 34.0 Calculation of capital ...................................................................................................... 58 35.0 Disregard of capital of child and young person .............................................................. 58 36.0 Income treated as capital ............................................................................................... 58 37.0 Calculation of capital in the United Kingdom .................................................................. 59 38.0 Calculation of capital outside the United Kingdom ......................................................... 59 39.0 Notional capital ............................................................................................................... 59 40.0 Diminishing notional capital rule ..................................................................................... 61 41.0 Capital jointly held .......................................................................................................... 63 42.0 Calculation of tariff income from capital .......................................................................... 63 43.0 Student related definitions .............................................................................................. 66 44.0 Treatment of students ..................................................................................................... 69 45.0 Students who are excluded from entitlement to Council Tax Reduction ........................ 69 46.0 Calculation of grant income ............................................................................................ 71 47.0 Calculation of covenant income where a contribution is assessed ................................ 72 48.0 Covenant income where no grant income or no contribution is assessed .................... 72 49.0 Student Covenant Income and Grant income – non disregard ...................................... 73 50.0 Other amounts to be disregarded ................................................................................... 73 51.0 Treatment of student loans ............................................................................................. 73 51A.0 Treatment of fee loans ................................................................................................. 75 52.0 Treatment of payments from access funds .................................................................... 75 53.0 Disregard of contribution ................................................................................................ 75 54.0 Further disregard of student’s income ............................................................................ 75 55.0 Income treated as capital ............................................................................................... 76 56.0 Disregard of changes occurring during summer vacation .............................................. 76 57.0 Maximum Council Tax Reduction ................................................................................... 78 58.0 Non-dependant deductions ............................................................................................ 78 59.0 Council Tax Reduction taper (applies to persons defined within Class E) ..................... 80 60.0 Extended reductions ....................................................................................................... 81 60A.0 Duration of extended reduction period ......................................................................... 81 60B.0 Amount of extended reduction ..................................................................................... 82 60C Extended reductions – movers ....................................................................................... 82 60D.0 Relationship between extended reduction and entitlement to Council Tax Reduction under the general conditions of entitlement .................................................................. 83 61.0 Extended reductions (qualifying contributory benefits) ................................................... 83 61A.0 Duration of extended reduction period (qualifying contributory benefits) .................... 84 61B.0 Amount of extended reduction (qualifying contributory benefits) ................................. 84 61C.0 Extended reductions (qualifying contributory benefits) – movers ................................. 84 3 Welwyn Hatfield - Council Tax Reduction Scheme 2021/22 61D.0 Relationship between extended reduction (qualifying contributory benefits) and entitlement to Council Tax Reduction under the general conditions of entitlement ...... 85 62.0 Not used. .....................................................................................................................