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(b) for “emoluments” in the first place where it occurs substitute | |
“earnings”; and | |
(c) for “foreign emoluments within the meaning of section 192” | |
substitute “earnings and amounts treated as earnings to which | |
subsection (6D) applies”. | 5 |
(3) After subsection (6C) insert— | |
“(6D) This subsection applies to earnings and amounts treated as | |
earnings for a year of assessment if— | |
(a) the employer or office-holder is not domiciled in the United | |
Kingdom in that year, and | 10 |
(b) the employment is with a foreign employer. | |
(6E) If there is a dispute as to whether the employee or office-holder | |
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 | 15 |
mentioned in section 42(1) of that Act.” | |
(4) In subsection (7)— | |
(a) after “this section” insert— | |
““earnings and amounts treated as earnings” means earnings | |
and amounts treated as earnings which constitute | 20 |
employment income (see section 7(2)(a) or (b) of ITEPA 2003); | |
“foreign employer” has the meaning given by section 721 of that | |
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”. | 25 |
162 In section 178(2) (setting of rates of interest)— | |
(a) in paragraph (m) omit the words “160,”, | |
(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 | 30 |
(r) Chapter 7 of Part 3 of the Income Tax (Earnings and | |
Pensions) Act 2003.”. | |
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 | 35 |
Schedule 9 to the Taxes Act 1988” substitute “an SAYE option | |
scheme”, and | |
(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)— | 40 |
(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 | |
(b) in sub-paragraph (ii), for “that Schedule” substitute “Schedule 3 to | |
the Income Tax (Earnings and Pensions) Act 2003”. | 45 |
(4) In paragraph 10 (other features)— | |
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(a) for “savings-related share option schemes approved under Schedule | |
9 to the Taxes Act 1988” substitute “SAYE option schemes approved | |
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 |
(5) After paragraph 17 insert— | |
“18 For the purposes of this Schedule “SAYE option scheme” has the | |
same meaning as in the SAYE code (see section 516 of the Income | |
Tax (Earnings and Pensions) Act 2003) (approved SAYE option | |
schemes).” | 10 |
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 | |
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) | 15 |
Act 2003)”; and | |
(b) in sub-paragraph (2), for “section 203 of the Income and Corporation | |
Taxes Act 1988 (pay as you earn)” substitute “regulations made | |
under section 684 of that Act (PAYE regulations)”. | |
Finance Act 1990 (c. 29) | 20 |
165 The Finance Act 1990 is amended as follows. | |
166 (1) Amend section 25(2) (donations to charity by individuals) as follows. | |
(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 | 25 |
“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 | |
ICTA) as follows. | |
(2) In sub-paragraph (1) for “sections 322(1)(a) and (2) and 323(1)” substitute | |
“section 322(1)(a)”. | 30 |
(3) Omit sub-paragraph (2). | |
Finance Act 1991 (c. 31) | |
168 (1) Amend section 38 of the Finance Act 1991 (employee share-schemes: non- | |
discrimination) as follows. | |
(2) Omit subsection (2). | 35 |
(3) In subsection (6) for “Subsections (2) and” substitute “Subsection”. | |
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 | 40 |
“emoluments” substitute “general earnings”. | |
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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— | 5 |
“(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 | 10 |
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”. | 15 |
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 | 20 |
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, | 25 |
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”. | 30 |
(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 | 35 |
are taken”. | |
(9) For subsection (7) substitute— | |
“(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. | 40 |
This subsection does not apply in relation to a deduction if | |
subsection (7A) applies in relation to it. | |
(7A) Where— | |
(a) a deduction in respect of a matter is allowed under an | |
excluded provision, and | 45 |
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(b) the amount deductible is at least equal to the whole of any | |
corresponding amount which would (but for this section) fall | |
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 | 5 |
included. | |
(7B) For the purposes of subsections (7) and (7A) “excluded provision” | |
means— | |
(a) any provision of Chapter 2 of Part 5 of ITEPA 2003 | |
(deductions for employee’s expenses), other than section 352 | 10 |
(limited deduction for agency fees paid by entertainers), and | |
(b) any provision of Chapter 5 of Part 5 of ITEPA 2003 | |
(deductions for earnings representing benefits or reimbursed | |
expenses).” | |
(10) For subsection (8)(a) substitute— | 15 |
“(a) modify the effect of subsections (7) and (7A) above by | |
amending subsection (7B) so as to include any enactment | |
contained in the Income Tax Acts within the meaning of | |
“excluded provision”; or”. | |
(11) In subsection (8)(b)— | 20 |
(a) for “subsection (7)” substitute “subsections (7) to (7B)”; | |
(b) for “under Schedule E” substitute “on employment income”. | |
(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 | 25 |
follows. | |
(2) In subsection (1)(a) for “an emolument” substitute “general earnings”. | |
(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 | 30 |
of which”; | |
(b) for “consists” substitute “consist”. | |
(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 | 35 |
1988” substitute “section 721(5) of ITEPA 2003”. | |
176 (1) Amend section 10ZB (non-cash vouchers provided by third parties) as | |
follows. | |
(2) In subsection (2)(a) for the words from “employment” to the end of the | |
paragraph substitute “employment which is an excluded employment for | 40 |
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”. | |
(4) In subsection (2), in the words following paragraph (b) for “as if that | |
employment were employment to which that Chapter applied” substitute | 45 |
“as if that employment were not an excluded employment”. | |
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(5) In subsection (3) for “section 141 of the Income and Corporation Taxes Act | |
1988” substitute “section 84 of ITEPA 2003”. | |
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 | 5 |
earnings included”. | |
(4) In subsection (4) for “Emoluments are chargeable emoluments” substitute | |
“General earnings are chargeable emoluments”. | |
(5) In subsection (5) for “emoluments” in both places where it occurs substitute | |
“general earnings”. | 10 |
178 (1) Amend section 122(1) (interpretation of Parts 1 to 6 and supplementary | |
provisions) as follows. | |
(2) Insert the following definitions in the appropriate places— | |
““the benefits code” has the meaning given by section 63(1) of | |
ITEPA 2003;”. | 15 |
““the employment income Parts of ITEPA 2003” means Parts 2 | |
to 7 of that Act;”. | |
““excluded employment” has the meaning given by section | |
63(4) of ITEPA 2003;”. | |
““general earnings” has the meaning given by section 7 of | 20 |
ITEPA 2003 and accordingly sections 3 and 112 of this Act do | |
not apply in relation to the word “earnings” when used in the | |
expression “general earnings”;”. | |
““ITEPA 2003” means the Income Tax (Earnings and Pensions) | |
Act 2003;”. | 25 |
(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 | |
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)” | 30 |
substitute “taxable earnings (as defined by section 10 of the Income Tax | |
(Earnings and Pensions) Act 2003) under PAYE regulations”. | |
180 (1) Amend section 150(2) (interpretation of Part 10) as follows. | |
(2) In paragraph (b) of the definition of “unemployability supplement or | |
allowance”— | 35 |
(a) in sub-paragraph (ii) for “section 315(1) of the Income and | |
Corporation Taxes Act 1988” substitute “section 641 of the Income | |
Tax (Earnings and Pensions) Act 2003”; | |
(b) omit sub-paragraph (v). | |
(3) In paragraph (b) of the definition of “war disablement pension” for | 40 |
“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 | |
section 315” substitute “section 641(1)(e) or (f) of the Income Tax (Earnings | 45 |
and Pensions) Act 2003”. | |
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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 | |
(Earnings and Pensions) Act 2003)”. | |
182 In section 171(1) (interpretation of Part 12), in paragraph (a) of the definition | 5 |
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)”. | |
183 In section 171ZJ(2)(a) (Part 12ZA: supplementary) for “emoluments | |
chargeable to income tax under Schedule E” substitute “general earnings (as | 10 |
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 | |
defined by section 7 of the Income Tax (Earnings and Pensions) Act 2003)”. | |
185 In Schedule 1 (supplementary provisions relating to contributions of Classes | 15 |
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 | |
regulations”; | |
(b) in paragraph 6(1)(b) for “regulations under that section” substitute | 20 |
“PAYE regulations”; | |
(c) in paragraph 6(7) for “regulations made under section 203 of the | |
Income and Corporation Taxes Act 1988 (PAYE)” substitute “PAYE | |
regulations”. | |
(d) in paragraph 7(1)(a) for “regulations made by the Inland Revenue | 25 |
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 | |
and Corporation Taxes Act 1988 (PAYE)” substitute “PAYE | |
regulations”. | 30 |
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 | |
arrangements for council tax benefit) as follows. | |
(2) In paragraph (b) of the definition of “war disablement pension” for | 35 |
“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”. | |
(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) | 40 |
of the Income Tax (Earnings and Pensions) Act 2003”. | |
188 (1) Amend section 159B(6) (effect of alterations affecting state pension credit) 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” | 45 |
substitute “any of paragraphs (a) to (f) of section 641(1) of the Income Tax | |
(Earnings and Pensions) Act 2003”. | |
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|
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| |
(3) In paragraph (b) of the definition of “war widow’s or widower’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”. | |
189 (1) Amend section 162(5) (destination of national insurance contributions) as | 5 |
follows. | |
(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 | 10 |
is amended as follows. | |
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”. | 15 |
193 (1) Amend section 4 (payments treated as remuneration and earnings) as | |
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 | 20 |
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 | |
or 226 of ITEPA 2003”. | |
(4) In subsection (6)(a) for “Schedule E” substitute “the employment income | 25 |
Parts of ITEPA 2003”. | |
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. | 30 |
(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 | |
him from any employment (‘the relevant employment’),”. | |
(3) For subsection (1)(b) substitute— | 35 |
“(b) the relevant employment is both— | |
(i) employed earner’s employment, and | |
(ii) an employment, other than an excluded employment, | |
for the purposes of the benefits code (see Chapter 2 of | |
Part 3 of ITEPA 2003),”. | 40 |
(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”. | |
(6) In subsection (2)(b) for “emolument” substitute “general earnings”. | |
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