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Income Tax (Earnings and Pensions) Bill


Income Tax (Earnings and Pensions) Bill
Part 10 — Social security income
Chapter 4 — Taxable UK social security benefits: exemptions

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 674   Taxable maximum: contribution-based jobseeker’s allowance

     (1)    A claimant’s taxable maximum for a week is determined under this section if—

           (a)           the claimant is paid a contribution-based jobseeker’s allowance for that

week, or

           (b)           the claimant is assumed under section 672(2) to be paid a contribution-

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based jobseeker’s allowance for that week.

     (2)    If the claimant is not a member of a married or unmarried couple, the

claimant’s taxable maximum for the week is equal to the age-related amount

which is applicable to the claimant for that week.

     (3)    If the claimant is a member of a married or unmarried couple, the claimant’s

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taxable maximum for the week is equal to the portion of the applicable amount

which would be included in the jobseeker’s allowance in respect of the couple

if an income-based jobseeker’s allowance were payable to the claimant for that

week.

 675   Interpretation

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     (1)    In sections 671 to 674, except in relation to Northern Ireland—

                    “age-related amount” and “applicable amount” mean the amounts

determined as such in accordance with regulations made under section

4 of JSA 1995;

                    “contribution-based jobseeker’s allowance” and “income-based

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jobseeker’s allowance” have the same meaning as in section 1(4) of JSA

1995;

                    “married couple” and “unmarried couple” have the same meaning as in

section 35(1) of JSA 1995.

     (2)    In sections 671 to 674, in relation to Northern Ireland—

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                    “age-related amount” and “applicable amount” mean the amounts

determined as such in accordance with regulations made under Article

6 of JS(NI)O 1995;

                    “contribution-based jobseeker’s allowance” and “income-based

jobseeker’s allowance” have the same meaning as in Article 3(4) of

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JS(NI)O 1995;

                    “married couple” and “unmarried couple” have the same meaning as in

Article 2(2) of JS(NI)O 1995.

Increases in respect of children

 676   Increases in respect of children

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No liability to income tax arises on a part of a taxable benefit listed in Table A

which is attributable to an increase in respect of a child.

 

 

Income Tax (Earnings and Pensions) Bill
Part 10 — Social security income
Chapter 5 — UK social security benefits wholly exempt from income tax

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Chapter 5

UK social security benefits wholly exempt from income tax

 677   UK social security benefits wholly exempt from tax: Table B

     (1)    No liability to income tax arises on the United Kingdom social security benefits

listed in Table B.

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TABLE B — PART 1

BENEFITS PAYABLE UNDER PRIMARY LEGISLATION

 

Social security benefit

Payable under

 
 

Attendance allowance

SSCBA 1992

Section 64

 

10

  

SSCB(NI)A 1992

Section 64

 
 

Back to work bonus

JSA 1995

Section 26

 
  

JS(NI)O 1995

Article 28

 
 

Bereavement payment

SSCBA 1992

Section 36

 
  

SSCB(NI)A 1992

Section 36

 

15

 

Child benefit

SSCBA 1992

Section 141

 
  

SSCB(NI)A 1992

Section 137

 
 

Child’s special allowance

SSCBA 1992

Section 56

 
  

SSCB(NI)A 1992

Section 56

 
 

Child tax credit

TCA 2002

Part 1

 

20

 

Council tax benefit

SSCBA 1992

Section 131

 
 

Disability living allowance

SSCBA 1992

Section 71

 
  

SSCB(NI)A 1992

Section 71

 
 

Guardian’s allowance

SSCBA 1992

Section 77

 
  

SSCB(NI)A 1992

Section 77

 

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Housing benefit

SSCBA 1992

Section 130

 
  

SSCB(NI)A 1992

Section 129

 
 

Industrial injuries benefit (apart

SSCBA 1992

Section 94

 
 

from industrial death benefit)

SSCB(NI)A 1992

Section 94

 
 

Pensioner’s Christmas bonus

SSCBA 1992

Section 148

 

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SSCB(NI)A 1992

Section 144

 
 

Payments out of the social fund

SSCBA 1992

Section 138

 
  

SSCB(NI)A 1992

Section 134

 
 

Severe disablement allowance

SSCBA 1992

Section 68

 
  

SSCB(NI)A 1992

Section 68

 

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Income Tax (Earnings and Pensions) Bill
Part 10 — Social security income
Chapter 6 — Taxable foreign benefits

    316

 
 

Social security benefit

Payable under

 
 

State maternity allowance

SSCBA 1992

Section 35

 
  

SSCB(NI)A 1992

Section 35

 
 

State pension credit

SPCA 2002

Section 1

 
  

SPCA(NI) 2002

Section 1

 

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Working tax credit

TCA 2002

Part 1

 
 

TABLE B — PART 2

BENEFITS PAYABLE UNDER REGULATIONS

 

Social security benefit

Payable under regulations made under

 
 

Compensation payments where

CSA 1995

Section 24

 

10

 

child support reduced because

CS(NI)O 1995

Article 17

 
 

of a change in legislation

   
 

Payments to reduce under-

WRPA 1999

Section 79

 
 

occupation by housing benefit

WRP(NI)O 1999

Article 70

 
 

claimants

   

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     (2)    Industrial death benefit is charged to tax under Part 9 (see section 577).

     (3)    In this section “industrial death benefit” means any benefit payable under—

           (a)           section 94 of, and Part 6 of Schedule 7 to, SSCBA 1992, or

           (b)           section 94 of, and Part 6 of Schedule 7 to, SSCB(NI)A 1992.

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Chapter 6

Taxable foreign benefits

 678   Taxable benefits: foreign benefits

     (1)    This section applies to any benefit which is payable under the law of a country

or territory outside the United Kingdom if—

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           (a)           it is substantially similar in character to a benefit listed in Table A, and

           (b)           it is payable to a person resident in the United Kingdom.

     (2)    But this section does not apply to a benefit which is charged to tax under Part

9 (pension income).

 679   Taxable social security income

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     (1)    If section 678 applies, the taxable social security income for a taxable benefit for

a tax year is the amount on which tax would be chargeable if the benefit were

chargeable to tax under Case V of Schedule D (see in particular the provisions

of ICTA listed in subsection (2)).

     (2)    Those provisions of ICTA are—

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Income Tax (Earnings and Pensions) Bill
Part 11 — Pay As You Earn
Chapter 1 — Introduction

    317

 

           (a)           sections 65 and 68 (calculation of the amount of the income on which

tax is to be charged in the tax year);

           (b)           section 584 (relief for unremittable overseas income);

           (c)           section 585 (relief on delayed remittances).

 680   Person liable for tax

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The person liable for any tax charged under this Part on a benefit to which

section 678 applies is the person receiving or entitled to the benefit.

Chapter 7

Taxable and other foreign benefits: exemptions

 681   Taxable and other foreign benefits: exemptions

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     (1)    No liability to income tax arises on a taxable foreign benefit if, or to the extent

that, the corresponding UK benefit is exempt income.

     (2)    No liability to income tax arises on a benefit which is payable under the law of

a country or territory outside the United Kingdom if it is substantially similar

in character to a United Kingdom social security benefit listed in Table B.

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     (3)    In this section—

                    “taxable foreign benefit” means a benefit to which section 678 applies;

                    “corresponding UK benefit”, in relation to a taxable foreign benefit, means

the taxable benefit listed in Table A to which the foreign benefit is

substantially similar in character (see section 678).

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Part 11

Pay As You Earn

Chapter 1

Introduction

 682   Scope of this Part

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     (1)    This Part provides for the assessment, collection and recovery of income tax in

respect of PAYE income.

     (2)    The provisions of this Part are contained in—

                    this Chapter (which gives the meaning of “PAYE income”),

                    Chapter 2 (PAYE: general),

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                    Chapter 3 (PAYE: special types of payer or payee),

                    Chapter 4 (PAYE: special types of income),

                    Chapter 5 (PAYE settlement agreements), and

                    Chapter 6 (miscellaneous and supplemental).

     (3)    Provision for PAYE regulations is made by Chapters 2 to 6.

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