Commentary on provisions of Act Section 1: Health and Social Care Levy
Section 1(1) states that every person who is liable to pay a qualifying National Insurance contribution, or would be liable if the pension age restrictions are ignored, will also be liable to pay a new tax. This tax is to be known as the Health and Social Care Levy (Section 1(2)). This tax will be charged on the same amount of earnings (for employees and employers) or profits (for the self-employed) that the contribution is payable on. It will be equal to 1.25% of the amount of earnings or profits.
	Section 1(3) defines "qualifying National Insurance contribution" as:
Primary Class 1 contributions (employees),
Secondary Class 1 contributions (employers),
Class 1A contributions (employers),
Class 1B contributions (employers),
Class 4 contributions (self-employed).
	Section 1(4) specifies the "pension age restriction provisions" that are to be ignored for the purpose of this Levy are any provisions made by or under any enactment that provides for an exemption from liability to pay a qualifying National Insurance contribution by reference to a person having attained pensionable age.
	Section 1(5) specifies that when determining the amount of the Levy chargeable in relation to a contribution, where the relevant percentage in respect of secondary Class 1 contributions is 0%, those earnings are to be ignored. This means that where relief is provided from secondary Class 1 contributions by way of a 0% rate (for example, in relation to certain apprentices), that relief will also apply to the Levy.
	Section 1(6) stipulates that the new Levy will have effect in relation to qualifying National Insurance contributions payable on or after 6 April 2023.