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“16A Agency workers | |
(1) This section applies where— | |
(a) any services which an individual provides or is obliged to | |
provide under an agency contract are treated under section | |
44(2) of ITEPA 2003 as the duties of an office or employment | 5 |
held by him with the agency, or | |
(b) any remuneration receivable under or in consequence of | |
arrangements falling within section 45 of that Act is treated as | |
earnings from an office or employment held by him with the | |
agency. | 10 |
(2) Where this section applies— | |
(a) section 15 above shall apply as if the individual were | |
employed by the agency, and | |
(b) section 16 above shall not apply to any payments made to the | |
individual under or in consequence of the agency contract or | 15 |
the arrangements. | |
(3) In this section “agency contract” and “remuneration” have the same | |
meaning as in Chapter 7 of Part 2 of ITEPA 2003.” | |
128 In section 42(3) (procedure for making claims etc.) for “section 203 of the | |
principal Act” substitute “PAYE regulations”. | 20 |
129 In section 46B(5) (questions as to the application of provisions concerning | |
the territorial sea to be determined by Special Commissioners) at the end of | |
paragraph (b) insert— | |
“, or | |
(c) section 41 of ITEPA 2003,”. | 25 |
130 In section 59A (payments on account of income tax)— | |
(a) in subsection (8)(b) for “section 203 of the principal Act” substitute | |
“PAYE regulations”; and | |
(b) in subsection (10) for “Regulations under section 203 of the principal | |
Act (PAYE)” substitute “PAYE regulations”. | 30 |
131 (1) Amend section 59B (payment of income tax and capital gains tax) as follows. | |
(2) In subsection (1) for “, 547(5) or 599A(5) of the principal Act” substitute “or | |
547(5) of the principal Act or section 626 of ITEPA 2003”. | |
(3) In subsection (2)(a) for “section 203 of the principal Act” substitute “PAYE | |
regulations”. | 35 |
(4) In subsection (8) for “Regulations under section 203 of the principal Act | |
(PAYE)” substitute “PAYE regulations”. | |
132 In section 62(1A)(a) (priority of claim for tax)— | |
(a) for “emoluments” substitute “taxable earnings (as defined by section | |
10 of ITEPA 2003)”; | 40 |
(b) for “section 203 of the principal Act (pay as you earn)” substitute | |
“PAYE regulations”. | |
133 In section 63(3)(a) (recovery of tax in Scotland) for “section 203 of the | |
principal Act (pay as you earn)” substitute “PAYE regulations”. | |
134 In section 64(1A)(a) (priority of claim for tax in Scotland)— | 45 |
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(a) for “emoluments” substitute “taxable earnings (as defined by section | |
10 of ITEPA 2003)”; | |
(b) for “section 203 of the principal Act (pay as you earn)” substitute | |
“PAYE regulations”. | |
135 (1) Amend section 70 (evidence) as follows. | 5 |
(2) In subsection (2)(a) for “or the principal Act” substitute “, the principal Act | |
or ITEPA 2003”. | |
(3) In subsection (4) for “emoluments” in both places where it occurs substitute | |
“earnings or amounts treated as earnings”. | |
(4) After subsection (4) insert— | 10 |
“(5) In subsection (4) “earnings or amounts treated as earnings” means | |
earnings or amounts treated as earnings which constitute | |
employment income (see section 7(2)(a) or (b) of ITEPA 2003).” | |
136 In section 91(3)(c) (effect on interest of reliefs) for “section 203 of the | |
principal Act” substitute “PAYE regulations”. | 15 |
137 (1) Amend the Table in section 98 (special returns, etc.) as follows. | |
(2) Omit from the first column of the Table the entries relating to— | |
(a) regulations under section 202 of ICTA; | |
(b) paragraph 117 of Schedule 8 to the Finance Act 2000; | |
(c) paragraph 64 of Schedule 14 to the Finance Act 2000. | 20 |
(3) At the end of the first column of the Table insert the following entries— | |
| | “Regulations under | | | | | | section 589 of ITEPA 2003. | | | | | | Regulations under section | | | | | | 715 of ITEPA 2003. | | | 25 | | | Paragraph 93 of Schedule | | | | | | 2 to ITEPA 2003. | | | | | | Paragraph 45 of Schedule | | | | | | 3 to ITEPA 2003. | | | | | | Paragraph 33 of Schedule | | | 30 | | | 4 to ITEPA 2003. | | | | | | Paragraph 51 of Schedule | | | | | | 5 to ITEPA 2003.” | | | |
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(4) Omit from the second column of the Table the entries relating to— | |
(a) section 136(6) of ICTA; | 35 |
(b) section 140G of ICTA; | |
(c) regulations under section 202 of ICTA; | |
(d) regulations under section 203 of ICTA; | |
(e) section 313(5) of ICTA; | |
(f) section 85(1) and (2) of the Finance Act 1988; | 40 |
(g) paragraph 65 of Schedule 14 to the Finance Act 2000. | |
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(5) At the end of the second column of the Table insert the following entries— | |
| | | “Sections 432 and 433 of | | | | | | ITEPA 2003. | | | | | | Section 445 of ITEPA 2003. | | | | | | Sections 465 and 466 of | | 5 | | | | ITEPA 2003. | | | | | | Section 486 of ITEPA 2003 | | | | | | Regulations under section | | | | | | 589 of ITEPA 2003. | | | | | | Regulations under section | | 10 | | | | 715 of ITEPA 2003. | | | | | | PAYE regulations. | | | | | | Paragraph 52 of Schedule 5 | | | | | | to ITEPA 2003.” | | |
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138 In section 98A(1) (special penalties in the case of certain returns) for | 15 |
“Regulations under section 203 (PAYE) or” substitute “PAYE regulations or | |
regulations under section”. | |
139 In section 118 (interpretation) after the entry relating to “inspector” insert— | |
““ITEPA 2003” means the Income Tax (Earnings and Pensions) Act | |
2003,”. | 20 |
140 In section 119(3) (construction of the Act) after “1992 Act” insert “and ITEPA | |
2003”. | |
141 In paragraph 4(1A) of Schedule 1A (claims etc. not included in returns) for | |
“section 203 of the principal Act” substitute “PAYE regulations”. | |
142 In paragraph 3 of Schedule 3 (rules for assigning proceedings to General | 25 |
Commissioners) for “regulations under section 203 of the principal Act” | |
substitute “PAYE regulations”. | |
143 In Schedule 3A (electronic lodgement of tax returns etc.) in paragraph 2(4) | |
(returns to which the Schedule applies) after “the principal Act” insert “or | |
under ITEPA 2003”. | 30 |
Finance Act 1973 (c. 51) | |
144 Schedule 15 to the Finance Act 1973 (territorial extension of charge to tax — | |
supplementary provisions) is amended as follows. | |
145 In paragraph 2(b) for “emoluments” substitute “earnings or amounts treated | |
as earnings which constitute employment income (see section 7(2)(a) or (b) | 35 |
of the Income Tax (Earnings and Pensions) Act 2003)”. | |
146 In paragraph 5 for “Schedule E” substitute “the Income Tax (Earnings and | |
Pensions) Act 2003”. | |
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Finance Act 1974 (c. 30) | |
147 In section 24 of the Finance Act 1974 (returns of persons treated as | |
employees) for “any emoluments paid to him, whether or not tax is | |
chargeable on them” substitute “any general earnings paid to him”. | |
Interpretation Act 1978 (c. 30) | 5 |
148 In Schedule 1 to the Interpretation Act 1978 (words and expressions defined) | |
after the definition of “Parliamentary election” insert— | |
““PAYE income” has the meaning given by section 683 of the Income | |
Tax (Earnings and Pensions) Act 2003.” | |
“PAYE regulations” means regulations under section 684 of that Act.”. | 10 |
Education (Scotland) Act 1980 (c. 44) | |
149 In section 73B of the Education (Scotland) Act 1980 (grants and loans: | |
Scotland)— | |
(a) in subsection (3)(g) for “regulations under section 203 of the | |
principal Act (PAYE)” substitute “PAYE regulations”; and | 15 |
(b) in subsection (4) for “income assessable to income tax under | |
Schedule E” substitute “PAYE income”. | |
Inheritance Tax Act 1984 (c. 51) | |
150 The Inheritance Tax Act 1984 is amended as follows. | |
151 (1) Amend the following provisions as provided in sub-paragraph (2)— | 20 |
(a) section 13(4)(c) (dispositions by close companies for benefit of | |
employees), | |
(b) section 72(4A) (property leaving employee trusts and newspaper | |
trusts), and | |
(c) section 86(3)(c) (trusts for benefit of employees). | 25 |
(2) In each of those provisions, for “an employee share ownership plan | |
approved under Schedule 8 to the Finance Act 2000” substitute “a share | |
incentive plan approved under Schedule 2 to the Income Tax (Earnings and | |
Pensions) Act 2003”. | |
152 In section 14(1) (waiver of remuneration), for “would be assessable to | 30 |
income tax under Schedule E” substitute “would be earnings, or would be | |
treated as earnings, and would constitute employment income (see section | |
7(2)(a) or (b) of the Income Tax (Earnings and Pensions) Act 2003)”. | |
Bankruptcy (Scotland) Act 1985 (c. 66) | |
153 In paragraph 1(1) of Schedule 3 to the Bankruptcy (Scotland) Act 1985 | 35 |
(preferred debts) for “section 203 of the principal Act (pay as you earn)” | |
substitute “PAYE regulations”. | |
Insolvency Act 1986 (c. 45) | |
154 In paragraph 1 of Schedule 6 to the Insolvency Act 1986 (the categories of | |
preferential debts)— | 40 |
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(a) for “emoluments” substitute “taxable earnings (as defined by section | |
10 of the Income Tax (Earnings and Pensions) Act 2003)”; and | |
(b) for “section 203 of the principal Act (pay as you earn)” substitute | |
“PAYE regulations”. | |
Finance Act 1988 (c. 39) | 5 |
155 (1) Section 73 of the Finance Act 1988 (consideration for certain restrictive | |
undertakings) is amended as follows. | |
(2) In subsection (2) for “any sum to which section 313 of that Act applies” | |
substitute “any payment which is treated as earnings of an employee by | |
virtue of section 225 of the Income Tax (Earnings and Pensions) Act 2003 | 10 |
(payments for restrictive undertakings)”. | |
(3) In subsection (3) for “Any sum to which section 313 of the Taxes Act 1988 | |
applies” substitute “Any payment which is treated as earnings of an | |
employee by virtue of section 225 of the Income Tax (Earnings and Pensions) | |
Act 2003”. | 15 |
Finance Act 1989 (c. 26) | |
156 The Finance Act 1989 is amended as follows. | |
157 For section 43 substitute— | |
“43 Schedule D: computation | |
(1) In calculating profits or gains of a trade to be charged under | 20 |
Schedule D for a period of account, no deduction is allowed for an | |
amount charged in the accounts in respect of employees’ | |
remuneration, unless the remuneration is paid before the end of the | |
period of 9 months immediately following the end of the period of | |
account. | 25 |
(2) For the purposes of subsection (1) above an amount charged in the | |
accounts in respect of employees’ remuneration includes an | |
amount— | |
(a) for which provision is made in the accounts, or | |
(b) which is held by an intermediary, | 30 |
with a view to its becoming employees’ remuneration. | |
(3) Subsection (1) above applies whether the amount is in respect of | |
particular employments or in respect of employments generally. | |
(4) If the remuneration is paid after the end of the period of 9 months | |
mentioned in subsection (1) above, any deduction allowed in respect | 35 |
of it is allowed for the period of account in which it is paid and not | |
for any other period of account. | |
(5) If the profits of the trade are calculated before the end of the period | |
of 9 months mentioned in subsection (1) above— | |
(a) it must be assumed, in making the calculation, that any | 40 |
remuneration which is unpaid when the calculation is made | |
will not be paid before the end of that period, but | |
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(b) if the remuneration is subsequently paid before the end of | |
that period, the calculation is adjusted if a claim to adjust it is | |
made to an officer of the Board within 2 years beginning with | |
the end of the period of account. | |
(6) For the purposes of this section, remuneration is paid when it— | 5 |
(a) is treated as received by an employee for the purposes of the | |
Income Tax (Earnings and Pensions) Act 2003 by section 18, | |
19, 30 or 31 of that Act (receipt of money and non-money | |
earnings), or | |
(b) would be so treated if it were not exempt income. | 10 |
(7) In this section— | |
“employee” includes an office holder and “employment” | |
correspondingly includes an office, and | |
“remuneration” means an amount which is or is treated as | |
earnings for the purposes of the Income Tax (Earnings and | 15 |
Pensions) Act 2003.” | |
158 For section 44 substitute— | |
“44 Investment and insurance companies: computation | |
(1) In calculating the profits of an investment company for a period of | |
account, no deduction is allowed for an amount charged in the | 20 |
accounts in respect of employees’ remuneration, unless the | |
remuneration is paid before the end of the period of 9 months | |
immediately following the end of the period of account. | |
(2) For the purposes of subsection (1) above an amount charged in the | |
accounts in respect of employees’ remuneration includes an | 25 |
amount— | |
(a) for which provision is made in the accounts, or | |
(b) which is held by an intermediary, | |
with a view to its becoming employees’ remuneration. | |
(3) Subsection (1) above applies whether the amount is in respect of | 30 |
particular employments or in respect of employments generally. | |
(4) If the remuneration is paid after the end of the period of 9 months | |
mentioned in subsection (1) above, any deduction allowed in respect | |
of it is allowed for the period of account in which it is paid and not | |
for any other period of account. | 35 |
(5) If the profits of the trade are calculated before the end of the period | |
of 9 months mentioned in subsection (1) above— | |
(a) it must be assumed, in making the calculation, that any | |
remuneration which is unpaid when the calculation is made | |
will not be paid before the end of that period, but | 40 |
(b) if the remuneration is subsequently paid before the end of | |
that period, the calculation is adjusted if a claim to adjust it is | |
made to an officer of the Board by or on behalf of the | |
company within 2 years beginning with the end of the period | |
of account. | 45 |
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(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, | |
19, 30 or 31 of that Act (receipt of money and non-money | |
earnings), or | 5 |
(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 | |
in calculating the profits as it applies in calculating the profits of an | |
investment company; and in any such case— | 10 |
(a) subsection (4) above shall have effect subject to section 86 | |
below, and | |
(b) in construing section 86 below the remuneration shall be | |
treated as expenses for the accounting period. | |
(8) In this section— | 15 |
“employee” includes an office holder and “employment” | |
correspondingly includes an office; | |
“investment company” has the same meaning as in Part IV of | |
the Taxes Act 1988; and | |
“remuneration” means an amount which is or is treated as | 20 |
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 | |
section 167 of ICTA) for “sections 332(2)(c) and 418(3)(a)” substitute “section | |
418(3)(a)”. | 25 |
160 (1) Amend section 69 (chargeable events in relation to employee share | |
ownership trusts) as follows. | |
(2) In subsection (3AA)— | |
(a) in paragraph (a) for “an employee share ownership” substitute “a | |
share incentive”, and | 30 |
(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 | |
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 | 35 |
2003)”. | |
(4) In subsection (4ZA)(b)— | |
(a) for “a savings-related share option scheme within the meaning of | |
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 | 40 |
Income Tax (Earnings and Pensions) Act 2003)”, and | |
(b) in sub-paragraph (ii) for “that Schedule” substitute “Schedule 3 to | |
that Act”. | |
161 (1) Amend section 76 (non-approved retirement benefits schemes) as follows. | |
(2) In subsection (6C)— | 45 |
(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”; | |
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