151.-Income support etc.

(1) Subject to the following provisions of this section, payments to any person of income support under [Part VII of the Social Security Contributions and Benefits Act 1992⁷¹ in respect of any period shall be charged to income tax under Schedule E if during that period-

(a) his right to income support is subject to the condition specified in [section 124(1)(d)(i)⁷¹] of that Act (availability for employment); or
(b) he is one of a married or unmarried couple and [section 126⁷¹] of that Act (trade disputes) applies to him but not to the other person;

(2)
In this section "married couple" and "unmarried couple" have the same meaning as in [Part VII of the Social Security Contributions and Benefits Act 1992⁷¹].
(3)
Where the amount of income support paid to any person in respect of any week or part of a week exceeds the taxable maximum for that period as defined below, the excess shall not be taxable.
(4) Where payments of unemployment benefit and payments of income support are made to any person in respect of the same week or part of a week, the amount taxable in respect of that period in respect of those payments shall not exceed the taxable maximum for that period within the meaning of subsection (3) above.
(5)
For the purposes of subsections (3) and (4) above, the taxable maximum in respect of a week shall be determined in accordance with subsections (6) to (8) below and the taxable maximum in respect of part of a week shall be equal to one-sixth of the taxable maximum in respect of a week multiplied by the number of days in the part.
(6) Where the income support is paid to one of a married or unmarried couple in a case not falling within subsection (1)(b) above, the taxable maximum in respect of a week shall be equal to the aggregate of-

(a)

the weekly rate specified for the week in question in relation to unemployment benefit in paragraph 1 of Part I of Schedule 4 to the [Social Security Contributions and Benefits Act 1992⁷¹]; and

(b) the increase for an adult dependant specified for that week in paragraph 1(a) of Part IV of that Schedule.

(7) Where the income support is paid to one of a married or unmarried couple in a case falling within subsection (1)(b) above, the taxable maximum in respect of a week shall-

(a) if the applicable amount (within the meaning of [Part VII of the Social Security Contributions and Benefits Act 1992⁷¹] consists only of an amount in respect of them, be equal to one half of that amount; and
(b) if the applicable amount includes other amounts, be equal to one half of the portion of it which is included in respect of them.

(8) Where the income support is paid to a person who is not one of a married or unmarried couple, the taxable maximum in respect of a week shall be equal to the weekly rate referred to in subsection (6)(a) above.
(9)
In its application to Northern Ireland this section shall have effect as if-

(a)

for the references to the [Social Security Contributions and Benefits Act 1992⁷²], to [Part VII⁷²] of that Act and to sections [124(1)(d)(i) and 126⁷²] of that Act there were substituted respectively references to the [Social Security Contributions and Benefits (Northern Ireland) Act 1992, Part VII of that Act, and sections 123(1)(d) and 125 of that Act⁷²]; and

(b) for the references to paragraph 1 of Part I of Schedule 4 to the [Social Security Contributions and Benefits Act 1992⁷² and paragraph 1(a) of Part IV of that Schedule there were substituted respectively references to paragraph 1 of Part I of Schedule 4 to the [Social Security Contributions and Benefits (Northern Ireland) Act 1992⁷²] and paragraph 1(a) of Part IV of that Schedule.