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Income Tax (Earnings and Pensions) Bill


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

    504

 

              “(7)                In calculating for the purposes of this section the amount of general

earnings received by an earner from an employment, a deduction

under any of the excluded provisions is to be disregarded.

                              This subsection does not apply in relation to a deduction if

subsection (7A) applies in relation to it.

5

              (7A)                Where—

                    (a)                   a deduction in respect of a matter is allowed under an

excluded provision, and

                    (b)                   the amount deductible is at least equal to the whole of any

corresponding amount which would (but for this section) fall

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by reference to that matter to be included in the general

earnings mentioned in subsection (7),

                              the whole of the corresponding amount shall be treated as not

included.

              (7B)                For the purposes of subsections (7) and (7A) “excluded provision”

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means—

                    (a)                   any provision of Chapter 2 of Part 5 of ITEPA 2003

(deductions for employee’s expenses), other than section 352

(limited deduction for agency fees paid by entertainers), and

                    (b)                   any provision of Chapter 5 of Part 5 of ITEPA 2003

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(deductions for earnings representing benefits or reimbursed

expenses).”

          (10)     For subsection (8)(a) substitute—

                    “(a)                      modify the effect of subsections (7) and (7A) above by

amending subsection (7B) so as to include any enactment

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contained in the Income Tax Acts within the meaning of

“excluded provision”; or”.

          (11)     In subsection (8)(b)—

              (a)             for “subsection (7)” substitute “subsections (7) to (7B)”;

              (b)             for “under Schedule E” substitute “on employment income”.

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          (12)     In subsection (9)(a) for “emoluments” substitute “general earnings”.

          (13)     Omit subsection (10).

  175     (1)      Amend section 10ZA (liability of third party provider of benefits in kind) as

follows.

          (2)      In subsection (1)(a) for “an emolument” substitute “general earnings”.

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          (3)      Amend subsection (1)(b) as follows—

              (a)             for “the emolument, in so far as it is one in respect of which”

substitute “the general earnings, in so far as they are ones in respect

of which”;

              (b)             for “consists” substitute “consist”.

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          (4)      In subsection (2), in the words after paragraph (b) for “an emolument”

substitute “general earnings”.

          (5)      In subsection (6) for “section 168(4) of the Income and Corporation Taxes Act

1988” substitute “section 721(5) of ITEPA 2003”.

  176     (1)      Amend section 10ZB (non-cash vouchers provided by third parties) as

45

follows.

 

 

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

    505

 

          (2)      In subsection (2)(a) for the words from “employment” to the end of the

paragraph substitute “employment which is an excluded employment for

the purposes of the benefits code, and”.

          (3)      In subsection (2)(b) for “if that Chapter did apply to that employment”

substitute “if that employment were not an excluded employment”.

5

          (4)      In subsection (2), in the words following paragraph (b) for “as if that

employment were employment to which that Chapter applied” substitute

“as if that employment were not an excluded employment”.

          (5)      In subsection (3) for “section 141 of the Income and Corporation Taxes Act

1988” substitute “section 84 of ITEPA 2003”.

10

  177     (1)      Amend section 10A (Class 1B National Insurance contributions) as follows.

          (2)      In subsection (1) for “emoluments” substitute “general earnings”.

          (3)      In subsection (2)(a) for “the emoluments included” substitute “the general

earnings included”.

          (4)      In subsection (4) for “Emoluments are chargeable emoluments” substitute

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“General earnings are chargeable emoluments”.

          (5)      In subsection (5) for “emoluments” in both places where it occurs substitute

“general earnings”.

  178     (1)      Amend section 122(1) (interpretation of Parts 1 to 6 and supplementary

provisions) as follows.

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          (2)      Insert the following definitions in the appropriate places—

                                      ““the benefits code” has the meaning given by section 63(1) of

ITEPA 2003;”.

                                      ““the employment income Parts of ITEPA 2003” means Parts 2

to 7 of that Act;”.

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                                      ““excluded employment” has the meaning given by section

63(4) of ITEPA 2003;”.

                                      ““general earnings” has the meaning given by section 7 of

ITEPA 2003 and accordingly sections 3 and 112 of this Act do

not apply in relation to the word “earnings” when used in the

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expression “general earnings”;”.

                                      ““ITEPA 2003” means the Income Tax (Earnings and Pensions)

Act 2003;”.

          (3)      In the definition of “PAYE settlement agreement” for “section 206A of the

Income and Corporation Taxes Act 1988” substitute “Chapter 5 of Part 11 of

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ITEPA 2003”.

  179      In section 126(5)(a)(ii) (trade disputes) for “emoluments in pursuance of

section 203 of the Income and Corporation Taxes Act 1988 (PAYE)”

substitute “taxable earnings (as defined by section 10 of the Income Tax

(Earnings and Pensions) Act 2003) under PAYE regulations”.

40

  180     (1)      Amend section 150(2) (interpretation of Part 10) as follows.

          (2)      In paragraph (b) of the definition of “unemployability supplement or

allowance”—

              (a)             in sub-paragraph (ii) for “section 315(1) of the Income and

Corporation Taxes Act 1988” substitute “section 641 of the Income

45

Tax (Earnings and Pensions) Act 2003”;

              (b)             omit sub-paragraph (v).

 

 

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

    506

 

          (3)      In paragraph (b) of the definition of “war disablement pension” for

“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988”

substitute “any of paragraphs (a) to (f) of section 641(1) of the Income Tax

(Earnings and Pensions) Act 2003”.

          (4)      In the definition of “war widow’s pension” for “subsection (2)(e) of the said

5

section 315” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings

and Pensions) Act 2003”.

  181      In section 163(1) (interpretation of Part 11), in paragraph (a) of the definition

of “employee” for “emoluments chargeable to income tax under Schedule E”

substitute “general earnings (as defined by section 7 of the Income Tax

10

(Earnings and Pensions) Act 2003)”.

  182      In section 171(1) (interpretation of Part 12), in paragraph (a) of the definition

of “employee” for “emoluments chargeable to income tax under Schedule E”

substitute “general earnings (as defined by section 7 of the Income Tax

(Earnings and Pensions) Act 2003)”.

15

  183      In section 171ZJ(2)(a) (Part 12ZA: supplementary) for “emoluments

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

defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)”.

  184      In section 171ZS(2)(a) (Part 12ZB: supplementary) for “emoluments

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

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defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)”.

  185      In Schedule 1 (supplementary provisions relating to contributions of Classes

1, 1A, 1B, 2 and 3)—

              (a)             in paragraph 6(1)(a) for “regulations under section 203 of the Income

and Corporation Taxes Act 1988 (PAYE)” substitute “PAYE

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regulations”;

              (b)             in paragraph 6(1)(b) for “regulations under that section” substitute

“PAYE regulations”;

              (c)             in paragraph 6(7) for “regulations made under section 203 of the

Income and Corporation Taxes Act 1988 (PAYE)” substitute “PAYE

30

regulations”.

              (d)             in paragraph 7(1)(a) for “regulations made by the Inland Revenue

under section 203(2) or” substitute “PAYE regulations or regulations

made under section”; and

              (e)             in paragraph 7B(1) for “regulations under section 203 of the Income

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and Corporation Taxes Act 1988 (PAYE)” substitute “PAYE

regulations”.

Social Security Administration Act 1992 (c. 5)

  186      The Social Security Administration Act 1992 is amended as follows.

  187     (1)      Amend section 139(11) (definitions used in provisions relating to

40

arrangements for council tax benefit) as follows.

          (2)      In paragraph (b) of the definition of “war disablement pension” for

“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988”

substitute “any of paragraphs (a) to (f) of section 641(1) of the Income Tax

(Earnings and Pensions) Act 2003”.

45

 

 

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

    507

 

          (3)      In the definition of “war widow’s pension” for “section 315(2)(e) of the

Income and Corporation Taxes Act 1988” substitute “section 641(1)(e) or (f)

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

  188     (1)      Amend section 159B(6) (effect of alterations affecting state pension credit) as

follows.

5

          (2)      In paragraph (b) of the definition of “war disablement pension” for

“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988

(c. 1)” substitute “any of paragraphs (a) to (f) of section 641(1) of the Income

Tax (Earnings and Pensions) Act 2003”.

          (3)      In paragraph (b) of the definition of “war widow’s or widower’s pension”

10

for “section 315(2)(e) of the Income and Corporation Taxes Act 1988”

substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions)

Act 2003”.

  189     (1)      Amend section 162(5) (destination of national insurance contributions) as

follows.

15

          (2)      In paragraph (c) for “emoluments” substitute “general earnings”.

          (3)      In paragraph (ca) for “emoluments” substitute “general earnings”.

Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

  190      The Social Security Contributions and Benefits (Northern Ireland) Act 1992

is amended as follows.

20

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

“emoluments” substitute “general earnings”.

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

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

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

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follows.

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

                           “(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

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section 476 or 477 of that Act;”.

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

or 226 of ITEPA 2003”.

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

Parts of ITEPA 2003”.

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

both places where it occurs substitute “general earnings”.

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

kind etc.) as follows.

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

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

ITEPA 2003 on an amount of general earnings received by

him from any employment (‘the relevant employment’),”.

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

 

 

 
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