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Income Tax (Earnings and Pensions) Bill


Income Tax (Earnings and Pensions) Bill
Schedule 6 — Consequential Amendments
Part 2 — Other enactments

    500

 

                    (b)                   company within 2 years beginning with the end of the period

of account.

              (6)             For the purposes of this section, remuneration is paid when it—

                    (a)                   is treated as received by an employee for the purposes of the

Income Tax (Earnings and Pensions) Act 2003 by section 18,

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19, 31 or 32 of that Act (receipt of money and non-money

earnings), or

                    (b)                   would be so treated if it were not exempt income.

              (7)             Where the profits of a company carrying on life assurance business

are not charged under Case I of Schedule D, this section shall apply

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in calculating the profits as it applies in calculating the profits of an

investment company; and in any such case—

                    (a)                   subsection (4) above shall have effect subject to section 86

below, and

                    (b)                   in construing section 86 below the remuneration shall be

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treated as expenses for the accounting period.

              (8)             In this section—

                                      “employee” includes an office-holder and “employment”

correspondingly includes an office;

                                      “investment company” has the same meaning as in Part IV of

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the Taxes Act 1988; and

                                      “remuneration” means an amount which is or is treated as

earnings for the purposes of Parts 2 to 7 of the Income Tax

(Earnings and Pensions) Act 2003.”

  159      In section 53(2)(f) (amendments consequential on the substitution of a new

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section 167 of ICTA) for “sections 332(2)(c) and 418(3)(a)” substitute “section

418(3)(a)”.

  160     (1)      Amend section 69 (chargeable events in relation to employee share

ownership trusts) as follows.

          (2)      In subsection (3AA)—

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              (a)             in paragraph (a) for “an employee share ownership” substitute “a

share incentive”, and

              (b)             in paragraph (b) for “Schedule 8 to the Finance Act 2000” substitute

“Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003”.

          (3)      In the definition of “market value” in subsection (3AC), for “in Schedule 8 to

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the Finance Act 2000” substitute “it has for the purposes of the SIP code (see

paragraph 92 of Schedule 2 to the Income Tax (Earnings and Pensions) Act

2003)”.

          (4)      In subsection (4ZA)(b)—

              (a)             for “a savings-related share option scheme within the meaning of

40

Schedule 9 to the Taxes Act 1988” substitute “an SAYE option scheme

within the meaning of the SAYE code (see section 516(4) of the

Income Tax (Earnings and Pensions) Act 2003)”, and

              (b)             in sub-paragraph (ii) for “that Schedule” substitute “Schedule 3 to

that Act”.

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  161     (1)      Amend section 76 (non-approved retirement benefits schemes) as follows.

          (2)      In subsection (6C)—

 

 

Income Tax (Earnings and Pensions) Bill
Schedule 6 — Consequential Amendments
Part 2 — Other enactments

    501

 

              (a)             for “paragraphs (a), (b) or (c) of section 596(1) of the Taxes Act 1988”

substitute “section 387(2) of the Income Tax (Earnings and Pensions)

Act 2003”;

              (b)             for “emoluments” in the first place where it occurs substitute

“earnings”; and

5

              (c)             for “foreign emoluments within the meaning of section 192”

substitute “earnings and amounts treated as earnings to which

subsection (6D) applies”.

          (3)      After subsection (6C) insert—

                              “(6D) This subsection applies to earnings and amounts treated as

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earnings for a year of assessment if—

                    (a)                   the employer or office-holder is not domiciled in the United

Kingdom in that year, and

                    (b)                   the employment is with a foreign employer.

                              (6E) If there is a dispute as to whether the employee or office-holder

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is not domiciled in the United Kingdom, sections 42 and 43 of the

Income Tax (Earnings and Pensions) Act 2003 (Board to determine

dispute as to domicile) apply to the dispute as they apply to a dispute

mentioned in section 42(1) of that Act.”

          (4)      In subsection (7)—

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              (a)             after “this section” insert—

                                      ““earnings and amounts treated as earnings” means earnings

and amounts treated as earnings which constitute

employment income (see section 7(2)(a) or (b) of ITEPA 2003),

                                      “foreign employer” has the meaning given by section 721 of that

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Act,”; and

              (b)             for “section 596(1)(a), (b) or (c) of the Taxes Act 1988” substitute

“section 387(2) of the Income Tax (Earnings and Pensions) Act 2003”.

  162      In section 178(2) (setting of rates of interest)—

              (a)             in paragraph (m) omit the words “160,”,

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              (b)             at the end of the first paragraph (p) omit the word “and”,

              (c)             renumber the second paragraph (p) as paragraph (q), and

              (d)             at the end of paragraph (q) insert “, and

                           (r)                             Chapter 7 of Part 3 of the Income Tax (Earnings and

Pensions) Act 2003.”.

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  163     (1)      Amend Schedule 5 (employee share ownership trusts) as follows.

          (2)      In paragraph 4(2A) (beneficiaries)—

              (a)             for “a savings-related share option scheme within the meaning of

Schedule 9 to the Taxes Act 1988” substitute “an SAYE option

scheme”, and

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              (b)             in paragraph (b), for “that Schedule” substitute “Schedule 3 to the

Income Tax (Earnings and Pensions) Act 2003”.

          (3)      In paragraph 9(2ZA)(b) (transfers of securities on qualifying terms)—

              (a)             for “a savings-related share option scheme within the meaning of

Schedule 9 to the Taxes Act 1988” substitute “an SAYE option

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scheme”, and

 

 

Income Tax (Earnings and Pensions) Bill
Schedule 6 — Consequential Amendments
Part 2 — Other enactments

    502

 

              (b)             in sub-paragraph (ii), for “that Schedule” substitute “Schedule 3 to

the Income Tax (Earnings and Pensions) Act 2003”.

          (4)      In paragraph 10 (other features)—

              (a)             for “savings-related share option schemes approved under Schedule

9 to the Taxes Act 1988” substitute “SAYE option schemes approved

5

under Schedule 3 to the Income Tax (Earnings and Pensions) Act

2003”; and

              (b)             for “that Schedule” substitute “Schedule 9 to the Taxes Act 1988”.

          (5)      After paragraph 17 insert—

          “18                  For the purposes of this Schedule “SAYE option scheme” has the

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same meaning as in the SAYE code (see section 516 of the Income

Tax (Earnings and Pensions) Act 2003) (approved SAYE option

schemes).”

Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19))

  164      In paragraph 1 of Schedule 4 to the Insolvency (Northern Ireland) Order

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1989 (the categories of preferential debts)—

              (a)             in sub-paragraph (1), for “emoluments” substitute “taxable earnings

(as defined by section 10 of the Income Tax (Earnings and Pensions)

Act 2003)”; and

              (b)             in sub-paragraph (2), for “section 203 of the Income and Corporation

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Taxes Act 1988 (pay as you earn)” substitute “regulations made

under section 684 of that Act (PAYE regulations)”.

Finance Act 1990 (c. 29)

  165      The Finance Act 1990 is amended as follows.

  166     (1)      Amend section 25(2) (donations to charity by individuals) as follows.

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          (2)      In paragraph (d) for “section 202(2) of the Taxes Act 1988” substitute “section

713(3) of the Income Tax (Earnings and Pensions) Act 2003”.

          (3)      In paragraph (i) for “section 132(4)(a) of the Taxes Act 1988” substitute

“section 28(2) of the Income Tax (Earnings and Pensions) Act 2003”.

  167     (1)      Amend paragraph 4 of Schedule 14 (amendments of sections 322 and 323 of

30

ICTA) as follows.

          (2)      In sub-paragraph (1) for “sections 322(1)(a) and (2) and 323(1)” substitute

“section 322(1)(a)”.

          (3)      Omit sub-paragraph (2).

Finance Act 1991 (c. 31)

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  168     (1)      Amend section 38 of the Finance Act 1991 (employee share-schemes: non-

discrimination) as follows.

          (2)      Omit subsection (2).

          (3)      In subsection (6) for “Subsections (2) and” substitute “Subsection”.

 

 

Income Tax (Earnings and Pensions) Bill
Schedule 6 — Consequential Amendments
Part 2 — Other enactments

    503

 

Social Security Contributions and Benefits Act 1992 (c. 4)

  169      The Social Security Contributions and Benefits Act 1992 is amended as

follows.

  170      In section 1 (outline of contributory system), in subsection (2)(bb) for

“emoluments” substitute “general earnings”.

5

  171      In section 2 (categories of earners), in subsection (1)(a) for “emoluments

chargeable to income tax under Schedule E” substitute “general earnings”.

  172     (1)      Amend section 4 (payments treated as remuneration and earnings) as

follows.

          (2)      For subsection (4)(a) substitute—

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                           “(a)                             the amount of any gain calculated under section 479

or 480 of ITEPA 2003 in respect of which an amount

counts as employment income of the earner under

section 476 or 477 of that Act;”.

          (3)      In subsection (4)(b) for “section 313 of the 1988 Act” substitute “section 225

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or 226 of ITEPA 2003”.

          (4)      In subsection (6)(a) for “Schedule E” substitute “the employment income

Parts of ITEPA 2003”.

  173      In section 7(1)(b) (meaning of “secondary contributor”) for “emoluments” in

both places where it occurs substitute “general earnings”.

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  174     (1)      Amend section 10 (Class 1A National Insurance contributions: benefits in

kind etc.) as follows.

          (2)      For subsection (1)(a) substitute—

                    “(a)                      for any tax year an earner is chargeable to income tax under

ITEPA 2003 on an amount of general earnings received by

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him from any employment (“the relevant employment”),”.

          (3)      For subsection (1)(b) substitute—

                    “(b)                      the relevant employment is both—

                           (i)                          employed earner’s employment, and

                           (ii)                         an employment, other than an excluded employment,

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within the meaning of the benefits code (see Chapter

2 of Part 3 of ITEPA 2003),”.

          (4)      In subsection (1)(c) for “emolument” substitute “general earnings”.

          (5)      In subsection (1) in the words after paragraph (c) for “emolument” substitute

“general earnings”.

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          (6)      In subsection (2)(b) for “emolument” substitute “general earnings”.

          (7)      In subsection (4)—

              (a)             for “emolument” substitute “general earnings”;

              (b)             for “it” substitute “them”.

          (8)      In subsection (6) for “emolument as is taken” substitute “general earnings as

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are taken”.

          (9)      For subsection (7) substitute—

 

 

 
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