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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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Class 3 NICs: Restrictions on the right to pay: precluded Class 3 NICs: qualification to circumstances in NIM25014: female to male transsexual issued with a full gender recognition certificate

Regulation 49(2A), (2B) and (2C) Social Security (Contributions) Regulations 2001

Section 126 of, and Part 1 of Schedule 4 to, Pensions Act 1995

Article 123 of, and Part 1 of Schedule 2 to, Pensions (Northern Ireland) Order 1995

NIM25014 explains that a person is precluded from paying Class 3 NICs for:

  • the tax year in which they reach state pension age; and
  • any subsequent tax year.But that preclusion is subject to the following qualification.

From 6th April 2005, a person may still pay if:

  • they are age 60 or over; and
  • they have a full gender recognition certificate (“GRC”)* issued under the Gender Recognition Act 2004; and
  • their acquired gender is male.Where someone satisfies those conditions, they are not precluded from paying Class 3 NICs for:

  • the tax year in which they reached age 60;
  • any subsequent tax year before the one in which the full GRC is issued; and
  • the tax year in which the full GRC is issued.

ExampleA transsexual man was born on 21st May 1945. He is aged 62 when he gets his full GRC in June 2007 (ie, in the 2007/08 tax year).

If he needs to do so, he is entitled to pay Class 3 NICs for:

  • the tax year in which he reached age 60 ie, the 2005/06 tax year; and
  • a year after the one in which he was age 60 but before the one in which the full GRC was issued ie, the 2006/07 tax year; and
  • the tax year in which the full GRC was issued ie, the 2007/08 tax year.For details of:

  • the rate of Class 3 NICs payable in respect of:

 

  • the tax year in which the full GRC is issued; or
  • the following tax year,see

NIM25029.

  • the other circumstances in which a person is precluded from paying Class 3 NICs, see NIM25006 – NIM25013 and NIM25015 – NIM25017.* The Gender Recognition Act 2004 provides for the issue of two types of GRC: interim or full. It is only the latter that is relevant for the purposes of the above.