Family Income Benefit meaning

This quick-reference checklist supports calculating whether an applicant meets the relevant thresholds for eligibility under family immigration routes. It specifically helps with reviewing both the main financial requirement and the adequate maintenance requirement for routes under Appendix FM of the Immigration Rules... Which financial requirement applies? New application from 11 April 2024: £29,000 Renewal or extension from 11 April 2024 (including fiancés converting to partner): £18,600 (plus applicant child increment, capped at £29,000) Pending application made before 11 April 2024: £18,600 (plus applicant child increment, no cap) Sponsoring applicant in receipt of a specified benefit or applying on a specified route (e.g. as a parent): Adequate maintenance based on current income support rates (see below) Where applicable, child increments are: +£3,800 for the first child and +£2,400 for each extra child; e.g. +1 child = £22,400, +2 children = £24,800, +3 children = £27,200, and +4 children = £29,600 (unless capped at £29,000). British children and those with leave under...

In this issue: Employee benefit trusts Budgets, Autumn Statements and Finance Bills Remuneration issues for financial services firms Useful Information Weekly highlights from other practice areas Employee benefit trusts JTC Employer Solutions Trustee Ltd (as trustee of the Henderson Family Benefit Trust) Garnett [2024] EWHC 3128 (Ch) This claim sought rescission of a number of deeds of appointment made under two employee benefit trusts (EBTs). The appointments established sub-trusts for named employees and their families under each trust and, in HMRC’s assessment, caused the appointed assets to fall outside the exemption in section 86 of the Inheritance Tax Act 1984 (Section 86), thereby creating potential inheritance tax exposures. The claimants argued that the appointments were executed on the mistaken assumption that the assets would remain within the Section 86 exemption, and that this error was sufficiently serious to justify setting the deeds aside. HMRC, in correspondence, raised objections that included the prospect of refusing relief on public policy...

What is a captive insurance company? A captive insurer is a fully owned subsidiary set up to manage and mitigate the risks of its parent and related entities. When the parent cannot secure appropriate cover from the traditional market for certain risks Premiums paid into the captive can generate savings for the parent or related parties Ability to place cover with reinsurers that the parent cannot access directly Addresses specific risks not available in the wider insurance market Funds the deductibles on policies purchased by the parent Investment income available to offset losses Improved control over claims Cover tailored to your needs Reduced reliance on commercial insurance Stabilisation of pricing Key takeaways A captive insurer is a wholly owned subsidiary that mitigates risk for its parent and related entities Benefits can include lower insurance costs, potential tax advantages, underwriting earnings, and tighter control over its cover Captive insurance companies...

Summary of changes From 1 April 2024: new rules for calculating holiday entitlement and pay for irregular hours and part‑year workers (including 12.07% accrual and an option to use rolled‑up holiday pay); annual National Living Wage/National Minimum Wage uplift and removal of the live‑in domestic worker exemption; higher Agricultural Minimum Wage rates in Wales; and increased VAT registration (£90,000) and deregistration (£88,000) limits. From 6 April 2024: flexible working becomes a day‑one right with revised processes and an updated Acas Code; paternity leave/pay reformed so two separate one‑week blocks can be taken within the first year; introduction of unpaid carer’s leave; extended redundancy protection during pregnancy and for a period after family leave; Employment Tribunal rule changes and higher compensation caps; uplifted Vento bands; higher SSP; Class 1 main employee NIC cut to 8% while weekly thresholds (including the £123 LEL) remain static; veterans’ employer NIC relief extended; van benefit and car/van fuel benefits frozen; higher high income child benefit charge threshold with tapered application; and...

Where a sponsoring partner receives one or more specified benefits, partners and dependent children applying under Appendix FM are not required to meet a minimum income threshold for the five-year route to settlement; instead, the applicable financial assessment is the test of 'adequate maintenance'. The 'adequate maintenance' criterion also applies to the following categories: parents applying under Appendix FM, other family members applying under Appendix Adult Dependent Relative, applications under Appendix Child Relative (Sponsors with Protection), and children of settled parents applying under Part 8 of the Immigration Rules, however, under Part 8 there are important differences regarding the treatment of third-party support and offers of employment. It remains unlikely that partners or other family members will now apply under Part 8 of the Immigration Rules; nevertheless, advisers may still encounter someone who has, for whatever reason, remained on that route without obtaining settlement and who may therefore be able to benefit from the transitional provisions. For more information...

For income tax rates and allowances relevant to the current tax year, refer to Practice Note: Key UK tax rates, thresholds and allowances for Private Client. For differences in the income tax rates and allowances for individuals in Scotland and Wales, and for links to additional material, see Practice Note: Tax—devolution tracker. Why this is important Personal allowance As a general rule, the personal allowance cannot be transferred to another person or carried into a future tax year, although in limited cases part of certain allowances can be shifted to a spouse or civil partner (see below). If an individual does not have sufficient taxable income to absorb the allowance in that tax year, the benefit for that year is lost. The personal allowance is also removed or reduced in the following circumstance: Where the taxpayer elects to use the remittance basis, they forfeit any UK personal allowance, blind person’s allowance, or married couple’s allowance for that tax year. Note that the remittance...

FORTHCOMING CHANGES At the Budget on 26 November 2025, the government outlined small corrective updates to the residence-based tax rules introduced by Finance Act 2025. Key measures are: Newcomers seeking access to the foreign income and gains (FIG) regime must be at least 10 years of age at the start of the tax year. Claims for FIG relief are confined to offsetting the particular foreign income, foreign employment income or foreign gains to which they directly relate. Aligning the qualifying asset holding company (QAHC) framework so carried-interest-style returns connected with services provided to a QAHC benefit from FIG relief. Amending the capital gains tax (CGT) residence test for personal representatives so they are not UK resident where the deceased was UK non-resident but was a long-term UK resident for inheritance tax purposes. Introducing a requirement to file a tax return where an individual is not entitled to the annual exempt amount for CGT under the FIG regime. Minor revisions to the...

Income Payments Agreement This Agreement is entered into by: [ FULL NAME ] of [ ADDRESS ] (the Bankrupt) [ FULL NAME ] of [ FIRM AND FIRM’S ADDRESS ], serving as [ joint ] trustee of the Bankrupt’s estate, together with any successor[ s ] in office, without personal liability (the Trustee) Background On [ DATE ], the [ COURT ] made a bankruptcy order against the Bankrupt under case number [ CASE NO ]; on [ DATE ], the Trustee was appointed to act as trustee of the Bankrupt’s estate. The Bankrupt has supplied the Trustee with a statement of monthly income and expenditure and, having considered the reasonable domestic needs of the Bankrupt and [ his OR her OR family ], the Trustee is of the view that the Bankrupt has surplus monthly income that can be claimed for the benefit of the Bankrupt’s estate...