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Income Tax (Earnings and Pensions) Bill


Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

    145

 

 292   Overnight expenses allowances of MPs

     (1)    No liability to income tax arises in respect of an overnight expenses allowance

paid to a Member of the House of Commons in accordance with a resolution of

that House.

     (2)    “Overnight expenses allowance” means an allowance expressed to be in

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respect of additional expenses necessarily incurred by the Member in staying

overnight away from the Member’s only or main residence, for the purpose of

performing parliamentary duties—

           (a)           in the London area, as defined in such a resolution, or

           (b)           in the member’s constituency.

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 293   Overnight expenses of other elected representatives

     (1)    No liability to income tax arises in respect of a payment to which this section

applies if it is expressed to be made in respect of a member’s necessary

overnight expenses.

     (2)    This section applies to payments—

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           (a)           made to members of the Scottish Parliament under section 81(2) of the

Scotland Act 1998 (c. 46),

           (b)           made to members of the National Assembly for Wales under section

16(2) of the Government of Wales Act 1998 (c. 38), or

           (c)           made to members of the Northern Ireland Assembly under section

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47(2) of the Northern Ireland Act 1998 (c. 47).

     (3)    In this section “a member’s necessary overnight expenses” means additional

expenses necessarily incurred by a member for the purpose of performing

duties as a member in staying overnight away from the member’s only or main

residence—

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           (a)           in the area in which the Parliament or Assembly to which the member

belongs sits, or

           (b)           in the constituency or region which the member represents.

 294   EU travel expenses of MPs and other representatives

     (1)    No liability to income tax arises in respect of a sum that is—

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           (a)           paid to a Member of the House of Commons in accordance with a

resolution of that House providing for members of that House to be

reimbursed EU travel expenses, or

           (b)           paid to a member of—

                  (i)                 the Scottish Parliament under section 81(2) of the Scotland Act

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1998,

                  (ii)                the National Assembly for Wales under section 16(2) of the

Government of Wales Act 1998, or

                  (iii)               the Northern Ireland Assembly under section 47(2) of the

Northern Ireland Act 1998,

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                         and expressed to be made in respect of EU travel expenses.

     (2)    “EU travel expenses” means the cost of, and any additional expenses incurred

in, travelling between the United Kingdom and—

           (a)           a European Union institution in Brussels, Luxembourg or Strasbourg,

or

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Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

    146

 

           (b)           the national parliament of another member State or of a candidate

country.

     (3)    In subsection (2) “candidate country” means Bulgaria, Cyprus, the Czech

Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, the

Slovak Republic, Slovenia or Turkey.

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     (4)    The Treasury shall by order make such amendments of the definition in

subsection (3) as are necessary to secure that the countries listed are those that

are from time to time candidates for membership of the European Union.

 295   Transport and subsistence for Government ministers etc.

     (1)    No liability to income tax arises in respect of the provision of transport or

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subsistence provided or made available by or on behalf of the Crown to—

           (a)           the holder of a ministerial office, or

           (b)           a member of the family or household of the holder of a ministerial

office.

     (2)    No liability to income tax arises in respect of payments and reimbursements by

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or on behalf of the Crown of expenses incurred in connection with the

provision of transport or subsistence to a person within subsection (1).

     (3)    “Ministerial office” means—

           (a)           an office in Her Majesty’s Government in the United Kingdom,

           (b)           any other office which is one of the offices and positions in respect of

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which salaries are payable under section 1 of the Ministerial and other

Salaries Act 1975 (c. 27), and

           (c)           an office under one of the following Acts which corresponds to an office

within paragraph (a) or (b)—

                  (i)                 the Scotland Act 1998 (c. 46),

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                  (ii)                the Government of Wales Act 1998 (c. 38), or

                  (iii)               the Northern Ireland Act 1998 (c. 47).

     (4)    In determining whether a particular person holds an office within subsection

(3)(b), it is irrelevant whether or not a salary is paid or payable to that person

under the Ministerial and other Salaries Act 1975.

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     (5)    In this section references to the provision of transport to a person include

references to—

           (a)           the provision or making available to that person of a vehicle with or

without a driver,

           (b)           the provision of fuel for a vehicle provided or made available to that

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person, and

           (c)           the provision of any other benefit in connection with such a vehicle.

     (6)    In this section—

           (a)           “subsistence” includes food and drink and temporary living

accommodation, and

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           (b)           “vehicle” means a mechanically propelled road vehicle.

 

 

Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

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Armed forces

 296   Armed forces’ leave travel facilities

     (1)    No liability to income tax arises in respect of—

           (a)           the provision of travel facilities for a member of the armed forces of the

Crown going on or returning from leave, or

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           (b)           a payment made in respect of such travel.

     (2)    In subsection (1) “travel facilities” does not include a vehicle.

 297   Armed forces’ food, drink and mess allowances

     (1)    No liability to income tax arises in respect of allowances if—

           (a)           they are payable out of the public revenue to any description of

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members of the armed forces of the Crown, and

           (b)           the Treasury certifies that they are payable to them instead of food or

drink normally supplied to members of the armed forces.

     (2)    No liability to income tax arises in respect of allowances if—

           (a)           they are payable out of the public revenue in respect of any description

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of members of the armed forces of the Crown, and

           (b)           the Treasury certifies that they are so payable as a contribution to the

expenses of a mess.

 298   Reserve and auxiliary forces’ training allowances

No liability to income tax arises in respect of the following sums if they are

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payable out of the public revenue to members of the reserve and auxiliary

forces of the Crown—

           (a)           training expenses allowances, and

           (b)           bounties payable in consideration of the members undertaking certain

training and attaining a particular standard of efficiency.

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Crown employees

 299   Crown employees’ foreign service allowances

     (1)    No liability to income tax arises in respect of an allowance paid to a person in

employment under the Crown if it is certified to represent compensation for

the extra cost of being obliged to live outside the United Kingdom in order to

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perform the duties of the employment.

     (2)    A certificate under subsection (1) may only be given by—

           (a)           the Treasury,

           (b)           the Secretary of State,

           (c)           the Lord Chancellor,

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           (d)           the Chancellor of the Exchequer,

           (e)           the Minister for the Civil Service,

           (f)           the Lord President of the Council,

           (g)           the Lord Privy Seal, or

           (h)           the Attorney General.

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Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

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Consuls, foreign agents etc.

 300   Consuls

     (1)    No liability to income tax arises in respect of income arising from the office of

a consul in the United Kingdom in the service of a foreign state.

     (2)    Such income is also to be disregarded in estimating the amount of income for

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any income tax purposes.

     (3)    In this section “consul” means a person recognised by Her Majesty as being a

consul-general, consul, vice-consul or consular agent.

 301   Official agents

     (1)    No liability to income tax arises in respect of income arising from employment

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as an official agent in the United Kingdom for a foreign state if conditions A

and B are met.

     (2)    Condition A is that the employee is neither—

           (a)           a Commonwealth citizen, nor

           (b)           a citizen of the Republic of Ireland.

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     (3)    Condition B is that the functions of the employment are not exercised in

connection with a trade, business or other undertaking carried on for the

purposes of profit.

     (4)    Such income is also to be disregarded in estimating the amount of income for

any income tax purposes.

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     (5)    In this section “official agent” means a person who is not a consul (as defined

in section 300) but is employed on the staff of—

           (a)           a consulate, or

           (b)           an official department or agency of a foreign state.

     (6)    Subsection (5)(b) does not apply to a department or agency which carries on a

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trade, business or other undertaking for the purposes of profit.

 302   Consular employees

     (1)    No liability to income tax arises in respect of income arising from employment

in the United Kingdom as a consular employee for a foreign state if—

           (a)           Her Majesty by Order in Council directs that this section applies to the

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foreign state for the purpose of giving effect to a reciprocal

arrangement with that state, and

           (b)           condition A or B is met.

     (2)    Condition A is that the employee is a national of the foreign state.

     (3)    Condition B is that the employee is not a British citizen, a British overseas

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territories citizen, a British National (Overseas) or a British Overseas citizen.

     (4)    In this section—

                    “consular employee” includes any person employed for the purposes of

the official business of a consular officer at—

                  (a)                 any consulate,

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Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

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                  (b)                 any consular establishment, or

                  (c)                 any other premises used for those purposes, and

                    “reciprocal arrangement” means a consular convention or other

arrangement with a foreign state, making similar provision to that

made by this section and section 322 of ICTA in the case of Her

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Majesty’s consular officers or employees in that state.

     (5)    An Order in Council under subsection (1) may limit the operation of this

section in relation to a state in any way appearing to Her Majesty necessary or

expedient having regard to the arrangement with the state.

     (6)    Such an Order—

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           (a)           may be made so as to have effect from a date earlier than that on which

it is made, but not earlier than the arrangement in question comes into

force, and

           (b)           may contain such transitional provisions as appear to Her Majesty

necessary or expedient.

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     (7)    A statutory instrument containing such an Order is subject to annulment in

pursuance of a resolution of the House of Commons.

     (8)    This section does not affect section 301 (official agents).

Visiting forces and staff of designated allied headquarters

 303   Visiting forces and staff of designated allied headquarters

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     (1)    No liability to income tax arises in respect of earnings if—

           (a)           they are paid by the government of a designated country to a member

of a visiting force of that country or of a civilian component of such a

force, and

           (b)           that person is not a British citizen, a British overseas territories citizen,

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a British National (Overseas) or a British Overseas citizen.

     (2)    For the purposes of subsection (1)—

           (a)           members of the armed forces of a designated country who are attached

to a designated allied headquarters are treated as a visiting force of that

country, and

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           (b)           whether a person is a member of a civilian component of such a force is

to be determined accordingly.

     (3)    No liability to income tax arises in respect of earnings if they are paid by a

designated allied headquarters to an employee of a category for the time being

agreed between Her Majesty’s government in the United Kingdom and the

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other members of the North Atlantic Council.

     (4)    But where the employee is a British citizen, a British overseas territories citizen,

a British National (Overseas) or a British Overseas citizen, subsection (3) only

applies if it is necessary for it to do so to give effect to an agreement between

parties to the North Atlantic Treaty.

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     (5)    Subsections (1) and (2) are to be interpreted as if—

           (a)           they were in Part 1 of the Visiting Forces Act 1952 (c. 67), and

           (b)           references in that Act to a country to which a provision of that Act

applies were references to a designated country.

 

 

Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 8 — Exemptions: special kinds of employees

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     (6)    In this section—

                    “allied headquarters” means an international military headquarters

established under the North Atlantic Treaty, and

                    “designated” means designated for the purpose in question by or under

an Order in Council made for giving effect to an international

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agreement.

Detached national experts

 304   Experts seconded to European Commission

     (1)    No liability to income tax arises in respect of daily subsistence allowances paid

by the European Commission to persons whose services are made available to

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the Commission by their employers under the detached national experts

scheme.

     (2)    “The detached national experts scheme” means—

           (a)           the scheme relating to national experts seconded to the European

Commission which was established by the Commission on 26th July

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1988, as it has effect for the time being, or

           (b)           any scheme having effect for the time being which replaces that

scheme.

Offshore oil and gas workers

 305   Offshore oil and gas workers: mainland transfers

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     (1)    No liability to income tax arises in respect of—

           (a)           the provision for an employee who has a permanent workplace at an

offshore installation of—

                  (i)                 transfer transport,

                  (ii)                related accommodation and subsistence, or

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                  (iii)               local transport, or

           (b)           the payment or reimbursement of reasonable expenses incurred by

such an employee on such transport or accommodation and

subsistence.

     (2)    Subsection (1)(a)(ii) only applies if the related accommodation and subsistence

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is provided at reasonable cost.

     (3)    In this section “transfer transport” means transport by sea or air between the

mainland of Great Britain or Northern Ireland and the offshore installation,

which meets conditions A and B.

     (4)    Condition A is that the place of arrival or departure on the mainland is one to

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or from which transport between the mainland and the offshore installation is

provided for employees generally.

     (5)    Condition B is that the cost of the transport would not be deductible under Part

5 if the employee incurred and paid it.

     (6)    In this section—

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                      “related accommodation and subsistence” means overnight

accommodation and subsistence in the vicinity of the place of

 

 

Income Tax (Earnings and Pensions) Bill
Part 4 — Employment income: exemptions
Chapter 9 — Exemptions: pension provision

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                      departure or arrival on the mainland, which is necessary because of the

time at which transfer transport is to be taken,

                      “local transport” means transport between a place where the employee is

provided with related accommodation and subsistence and the place of

departure or arrival on the mainland,

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                      “offshore installation” means anything falling within section 40(5)(b)(i) or

(ii), and

                      “workplace” and “permanent workplace” have the meaning given by

section 339.

Miners etc.

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 306   Miners etc: coal and allowances in lieu of coal

     (1)    No liability to income tax arises in respect of the provision of coal or smokeless

fuel or an allowance paid in lieu of such provision if the employee is a colliery

worker and the condition in subsection (2) is met.

     (2)    That condition is that the amount of coal or fuel provided or in respect of which

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the allowance is paid does not substantially exceed the amount reasonably

required for personal use.

     (3)    That condition is assumed to be met unless the contrary is shown.

     (4)    In this section “colliery worker” means a coal miner or any other person

employed at or about a colliery otherwise than in clerical, administrative or

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technical work.

Chapter 9

Exemptions: pension provision

 307   Death or retirement benefit provision

     (1)    No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable

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benefits: residual liability to charge) in respect of provision made by an

employee’s employer for a retirement or death benefit.

     (2)    In subsection (1) “retirement or death benefit” means a pension, annuity, lump

sum, gratuity or other similar benefit which will be paid or given to the

employee or a member of the employee’s family or household in the event of

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the employee’s retirement or death.

 308   Exemption of contributions to approved personal pension arrangements

     (1)    No liability to income tax arises in respect of earnings where an employer

makes contributions under approved personal pension arrangements made by

an employee.

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     (2)    In this section “approved” and “personal pension arrangements” have the

meaning given by section 630(1) of ICTA.

 

 

 
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