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Income Tax (Earnings and Pensions) Bill


Income Tax (Earnings and Pensions) Bill

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Apportionment of cash equivalent

      108        Cash equivalent: accommodation provided for more than one employee

Other tax implications

      109        Priority of this Chapter over Chapter 1 of this Part

Supplementary

      110        Meaning of “annual value”

      111        Disputes as to annual value

      112        Meaning of “person involved in providing the accommodation”

      113        Meaning of “the property”

Chapter 6

Taxable benefits: cars, vans and related benefits

General

      114        Cars, vans and related benefits

      115        Meaning of “car” and “van”

      116        Meaning of when car or van is available to employee

      117        Meaning of car or van made available by reason of employment

      118        Availability for private use

      119        Where alternative to benefit of car offered

Cars: benefit treated as earnings

      120        Benefit of car treated as earnings

      121        Method of calculating the cash equivalent of the benefit of a car

Cars: the price of a car

      122        The price of the car

      123        The list price of a car

      124        The notional price of a car with no list price

Cars: treatment of accessories

      125        Meaning of “accessory” and related terms

      126        Amounts taken into account in respect of accessories

      127        The list price of an accessory

      128        Accessory: published price of the car manufacturer etc.

      129        Accessory: published price of the accessory manufacturer etc.

      130        The notional price of an accessory

      131        Replacement accessories

Cars: capital contributions by employee

      132        Capital contributions by employee

 
 

Income Tax (Earnings and Pensions) Bill

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Cars: the appropriate percentage

      133        How to determine the “appropriate percentage”

      134        Meaning of car with or without a CO2 emissions figure

Cars: appropriate percentage: first registered on or after 1st January 1998

      135        Car with a CO2 emissions figure: pre-October 1999 registration

      136        Car with a CO2 emissions figure: post-September 1999 registration

      137        Car with a CO2 emissions figure: bi-fuel cars

      138        Car with a CO2 emissions figure: automatic car for a disabled employee

      139        Car with a CO2 emissions figure: the appropriate percentage

      140        Car without a CO2 emissions figure: the appropriate percentage

      141        Diesel cars: the appropriate percentage

Cars: appropriate percentage: first registered before 1st January 1998

      142        Car first registered before 1st January 1998: the appropriate percentage

Cars: unavailability or payments for private use

      143        Deduction for periods when car unavailable

      144        Deduction for payments for private use

      145        Modification of provisions where car temporarily replaced

Cars: special cases

      146        Cars that run on road fuel gas

      147        Classic cars: 15 years of age or more

Cars: reduction where shared car

      148        Reduction of cash equivalent where car is shared

Car fuel: benefit treated as earnings

      149        Benefit of car fuel treated as earnings

      150        Car fuel: calculating the cash equivalent

      151        Car fuel: nil cash equivalent

      152        Car fuel: proportionate reduction of cash equivalent

      153        Car fuel: reduction of cash equivalent

Vans: benefit treated as earnings

      154        Benefit of van treated as earnings

      155        Method of calculating the cash equivalent of the benefit of a van

      156        Meaning of “shared van”

Vans: value of exclusive availability

      157        Value of exclusive availability

      158        Deduction for periods of unavailability or shared use

      159        Deduction for payments for private use

 
 

Income Tax (Earnings and Pensions) Bill

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Vans: value of shared availability

      160        Value of shared availability

      161        Value of shared availability: normal calculation

      162        Shared van: meaning of “participating employee”

      163        Shared van: basic value

      164        Value of shared availability: alternative calculation

      165        Deduction for payments for private use

Vans: limit of cash equivalent

      166        Vans: limit of cash equivalent

Cars and vans: exceptions

      167        Pooled cars

      168        Pooled vans

      169        Car available to more than one member of family or household employed by

same employer

Orders

      170        Orders etc. relating to this Chapter

Supplementary

      171        Minor definitions: general

      172        Minor definitions: equipment to enable a disabled person to use a car

Chapter 7

Taxable benefits: loans

Introduction

      173        Loans to which this Chapter applies

      174        Employment-related loans

Benefit of taxable cheap loan treated as earnings

      175        Benefit of taxable cheap loan treated as earnings

      176        Exception for loans on ordinary commercial terms

      177        Exceptions for loans at fixed rate of interest

      178        Exception for loans where interest qualifies for tax relief

      179        Exception for certain advances for necessary expenses

      180        Threshold for benefit of loan to be treated as earnings

Calculation of amount of interest at official rate

      181        The official rate of interest

      182        Normal method of calculation: averaging

      183        Alternative method of calculation

 
 

Income Tax (Earnings and Pensions) Bill

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Supplementary provisions relating to taxable cheap loans

      184        Interest treated as paid

      185        Apportionment of cash equivalent in case of joint loan etc.

      186        Replacement loans

      187        Aggregation of loans by close company to director

Loan released or written off

      188        Loan released or written off: amount treated as earnings

      189        Exception where double charge

General supplementary provisions

      190        Exclusion of charge after death of employee

      191        Claim for relief to take account of event after assessment

Chapter 8

Taxable benefits: notional loans in respect of acquisitions of shares

Introduction

      192        Application of this Chapter

Acquisition of shares for less than market value

      193        Notional loan where acquisition for less than market value

      194        The amount of the notional loan

      195        Discharge of notional loan: amount treated as earnings

Supplementary provisions

      196        Effects on other income tax charges

      197        Minor definitions

Chapter 9

Taxable benefits: disposals of shares for more than market value

      198        Shares to which this Chapter applies

      199        Disposal for more than market value: amount treated as earnings

      200        Minor definitions

Chapter 10

Taxable benefits: residual liability to charge

Introduction

      201        Employment-related benefits

      202        Excluded benefits

 
 

Income Tax (Earnings and Pensions) Bill

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Cash equivalent of benefit treated as earnings

      203        Cash equivalent of benefit treated as earnings

Determination of the cost of the benefit

      204        Cost of the benefit: basic rule

      205        Cost of the benefit: asset made available without transfer

      206        Cost of the benefit: transfer of used or depreciated asset

Supplementary provisions

      207        Meaning of “annual rental value”

      208        Meaning of “market value”

      209        Meaning of “persons providing benefit”

      210        Power to exempt minor benefits

Special rules for scholarships

      211        Special rules for scholarships: introduction

      212        Scholarships provided under arrangements entered into by employer or

connected person

      213        Exception for certain scholarships under trusts or schemes

      214        Scholarships: cost of the benefit

      215        Limitation of exemption for scholarship income in section 331 of ICTA

Chapter 11

Taxable benefits: exclusion of lower-paid employments from parts of benefits

code

Introduction

      216        Provisions not applicable to lower-paid employments

What is lower-paid employment

      217        Meaning of “lower-paid employment”

      218        Calculation of earnings rate for a tax year

      219        Extra amounts to be added in connection with a car

Treatment of related employments

      220        Related employments

Chapter 12

Payments treated as earnings

      221        Payments where employee absent because of sickness or disability

      222        Payments by employer on account of tax where deduction not possible

      223        Payments on account of director’s tax other than by the director

      224        Payments to non-approved personal pension arrangements

      225        Payments for restrictive undertakings

      226        Valuable consideration given for restrictive undertakings

 
 

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Part 4

Employment income: exemptions

Chapter 1

Exemptions: general

      227        Scope of Part 4

      228        Effect of exemptions on liability under provisions outside Part 2

Chapter 2

Exemptions: mileage allowances and passenger payments

Mileage allowances

      229        Mileage allowance payments

      230        The approved amount for mileage allowance payments

      231        Mileage allowance relief

      232        Giving effect to mileage allowance relief

Passenger payments

      233        Passenger payments

      234        The approved amount for passenger payments

Supplementary

      235        Vehicles to which this Chapter applies

      236        Interpretation of this Chapter

Chapter 3

Exemptions: other transport, travel and subsistence

      237        Parking provision and expenses

      238        Modest private use of heavy goods vehicles

      239        Payments and benefits connected with taxable cars and vans and exempt

heavy goods vehicles

      240        Incidental overnight expenses and benefits

      241        Incidental overnight expenses and benefits: overall exemption limit

      242        Works transport services

      243        Support for public bus services

      244        Cycles and cyclist’s safety equipment

      245        Travelling and subsistence during public transport strikes

      246        Transport between work and home for disabled employees: general

      247        Provision of cars for disabled employees

      248        Transport home: late night working and failure of car-sharing arrangements

      249        Interpretation of this Chapter

 
 

Income Tax (Earnings and Pensions) Bill

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Chapter 4

Exemptions: education and training

Work-related training

      250        Exemption of work-related training provision

      251        Meaning of “work-related training”

      252        Exception for non-deductible travel expenses

      253        Exception where provision for excluded purposes

      254        Exception where unrelated assets are provided

Individual learning account training

      255        Exemption for contributions to individual learning account training

      256        Meaning of “individual learning account training”

      257        Exception for non-deductible travel expenses

      258        Exception where provision for excluded purposes

      259        Exception where unrelated assets are provided

      260        Exception where training not generally available to staff

Chapter 5

Exemptions: recreational benefits

Recreational facilities

      261        Exemption of recreational benefits

      262        Benefits not exempted by section 261

      263        Power to alter benefits to which section 261 applies

Annual parties and functions

      264        Annual parties and functions

Entertainment

      265        Third party entertainment

Chapter 6

Exemptions: non-cash vouchers and credit-tokens

General exemptions: use for exempt benefits

      266        Exemption of non-cash vouchers for exempt benefits

      267        Exemption of credit-tokens used for exempt benefits

Exemptions for particular non-cash vouchers and credit-tokens

      268        Exemption of vouchers and tokens for incidental overnight expenses

      269        Exemption where benefits or money obtained in connection with taxable car

or van or exempt heavy goods vehicle

      270        Exemption for small gifts of vouchers and tokens from third parties

 
 

 
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Revised 17 February 2003