|
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| |
(4) If a disqualifying event occurs in relation to a qualifying option | |
(whether the original option or a replacement option), shares | |
acquired by the exercise of that option are qualifying shares only | |
if the option is exercised within 40 days of that event. | |
(5) References in this Part of this Schedule to “the original option”, | 5 |
where there has been one or more replacement options, are to the | |
option that the replacement option (or, if there has been more than | |
one, the first of them) replaced. | |
Taper relief on disposal of qualifying shares | |
15 For the purposes of computing taper relief on a disposal of | 10 |
qualifying shares, the shares are treated as if they had been | |
acquired when the original option was granted. | |
Rights issues in respect of qualifying shares | |
16 Where— | |
(a) an individual holds qualifying shares, and | 15 |
(b) there is, by virtue of any such allotment for payment as is | |
mentioned in section 126(2)(a) (allotment in proportion to | |
shareholdings), a reorganisation affecting that holding, | |
sections 127 to 130 (which relate to reorganisation or reduction of | |
share capital) shall not apply in relation to that holding.” | 20 |
Pension Schemes Act 1993 (c. 48) | |
222 In section 181(1) of the Pension Schemes Act 1993 (general interpretation), in | |
the definition of “employee” for “emoluments chargeable to tax under | |
Schedule E” substitute “general earnings (as defined by section 7 of the | |
Income Tax (Earnings and Pensions) Act 2003)”. | 25 |
Pension Schemes (Northern Ireland) Act 1993 (c. 49) | |
223 In section 176(1) of the Pension Schemes (Northern Ireland) Act 1993 | |
(general interpretation), in the definition of “employee” for “emoluments | |
chargeable to tax under Schedule E” substitute “general earnings (as defined | |
by section 7 of the Income Tax (Earnings and Pensions) Act 2003)”. | 30 |
Finance Act 1994 (c. 9) | |
224 (1) In the Finance Act 1994, paragraph 27 of Schedule 24 (provisions relating to | |
the Railways Act 1993 — employee benefits: transport vouchers) is amended | |
as follows. | |
(2) In sub-paragraph (3) for “Subsection (6) of section 141 of the Taxes Act 1988” | 35 |
substitute “Section 86 of ITEPA 2003”. | |
(3) In sub-paragraph (3)(c) for “paragraphs (a) to (d) of that subsection” | |
substitute “section 86(2)(a) to (d) of ITEPA 2003”. | |
(4) In sub-paragraph (12) after the definition of “the former transport voucher | |
benefits for comparable employees” insert— | 40 |
““ITEPA 2003” means the Income Tax (Earnings and | |
Pensions) Act 2003.” | |
| |
| |
|
| |
| |
(5) For sub-paragraph (13) substitute— | |
“(13) Subject to paragraph 1(1) and sub-paragraph (12) | |
above, expressions used in this paragraph and in | |
section 86 of ITEPA 2003 have the same meaning in | |
this paragraph as in that section. | 5 |
This does not apply in relation to the reference to a | |
transport voucher in sub-paragraph (1) above.” | |
Finance Act 1995 (c. 4) | |
225 The Finance Act 1995 is amended as follows. | |
226 (1) Amend section 128 (limit on income chargeable on non-residents: income | 10 |
tax) as follows. | |
(2) For subsection (3)(c) substitute— | |
“(cc) it is chargeable to tax under Part 9 of ITEPA 2003 (pension | |
income) because section 577 or 605 of that Act applies to it | |
(UK social security pensions and retirement annuity | 15 |
contracts); | |
(cd) it arises from a source in the United Kingdom and is | |
chargeable to tax under Part 9 of ITEPA 2003 because section | |
609, 610 or 611 of that Act applies to it (certain employment- | |
related annuities); | 20 |
(ce) it is a taxable benefit listed in Table A in section 660 of ITEPA | |
2003, other than income support or jobseeker’s allowance, | |
chargeable to tax under Part 10 of that Act (social security | |
income);” | |
(3) In subsection (3)(d) for “paragraphs (a) to (c)” substitute “paragraphs (a) to | 25 |
(ce)”. | |
(4) For subsection (11) substitute— | |
“(11) In this section— | |
“investment transaction” has the same meaning as in section | |
127 above; | 30 |
“ITEPA 2003” means the Income Tax (Earnings and Pensions) | |
Act 2003.” | |
227 In section 137(7) (part-time workers: miscellaneous provisions) for | |
“Subsections (2) to” substitute “Subsection”. | |
Jobseekers Act 1995 (c. 18) | 35 |
228 The Jobseekers Act 1995 is amended as follows. | |
229 In section 15(2)(c)(i) (effect on other claimants) 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 |
230 In section 26(3) (the back to work bonus) for the words from “Subject to | |
section 617” to “not to be taxable)” substitute “Subject to section 677 of the | |
Income Tax (Earnings and Pensions) Act 2003 (which provides for a back to | |
work bonus not to be taxable)”. | |
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|
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Child Support Act 1995 (c. 34) | |
231 For section 10(4) of the Child Support Act 1995 (child maintenance bonus) | |
substitute— | |
“(4) Subsection (3) is subject to section 677 of the Income Tax (Earnings | |
and Pensions) Act 2003 (which provides for a back to work bonus not | 5 |
to be taxable).” | |
Child Support (Northern Ireland) Order 1995 (S.I. 1995/2702 (N.I. 13)) | |
232 For Article 4(4) of the Child Support (Northern Ireland) Order 1995 (child | |
maintenance bonus) substitute— | |
“(4) Paragraph (3) is subject to section 677 of the Income Tax (Earnings | 10 |
and Pensions) Act 2003 (which provides for a back to work bonus not | |
to be taxable).” | |
Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/2705 (N.I. 15)) | |
233 The Jobseekers (Northern Ireland) Order 1995 is amended as follows. | |
234 In Article 17(2)(c)(i) (effect on other claimants) for “emoluments in | 15 |
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 regulations made under section | |
684 of that Act (PAYE regulations)”. | |
235 In Article 28(3) (the back to work bonus) for the words from “Subject to | 20 |
section 617” to “not to be taxable)” substitute “Subject to section 677 of the | |
Income Tax (Earnings and Pensions) Act 2003 (which provides for a back to | |
work bonus not to be taxable)”. | |
Teaching and Higher Education Act 1998 (c. 30) | |
236 In section 22 of the Teaching and Higher Education Act 1998 (new | 25 |
arrangements for giving financial support to students)— | |
(a) in subsection (5)(g) for “regulations under section 203 of the Income | |
and Corporation Taxes Act 1988” substitute “PAYE regulations”; and | |
(b) in subsection (6)(a) for “income assessable to income tax under | |
Schedule E” substitute “PAYE income”. | 30 |
Scotland Act 1998 (c. 46) | |
237 In section 79(3) of the Scotland Act 1998 (supplemental powers to modify | |
enactments) for “section 203 of the Income and Corporation Taxes Act 1988 | |
(PAYE)” substitute “PAYE regulations”. | |
Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14)) | 35 |
238 In Article 3 of the Education (Student Support) (Northern Ireland) Order | |
1998 (new arrangements for giving financial support to students)— | |
(a) in paragraph (5)(g) for “section 203 of the Income and Corporation | |
Taxes Act 1988” substitute “section 684 of the Income Tax (Earnings | |
and Pensions) Act 2003 (PAYE regulations)”; and | 40 |
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(b) in paragraph (6)(a) for “income assessable to income tax under | |
Schedule E” substitute “PAYE income (as defined in section 683 of | |
the Income Tax (Earnings and Pensions) Act 2003”. | |
Tax Credits Act 1999 (c. 10) | |
239 The Tax Credits Act 1999 is amended as follows. | 5 |
240 In section 6(1) (payment of tax credit by employers etc.) for “income | |
assessable to income tax under Schedule E” substitute “PAYE income”. | |
241 In paragraph 10(1) of Schedule 2 (transfer of functions), in paragraph (b) of the | |
subsection which, in any case where the overpayment was made in respect of tax | |
credit, is treated as substituted for— | 10 |
(a) subsection (8) of section 71 of the Social Security Administration Act 1992 | |
(c. 5); and | |
(b) subsection (8) of section 69 of the Social Security Administration (Northern | |
Ireland) Act 1992 (c. 8), | |
for “section 203(2)(a) of the Income and Corporation Taxes Act 1988 (PAYE)” | 15 |
substitute “PAYE regulations”. | |
Finance Act 2000 (c. 17) | |
242 The Finance Act 2000 is amended as follows. | |
243 (1) Amend section 38 (payroll deduction scheme) as follows. | |
(2) In subsection (1)— | 20 |
(a) for “under section 202 of the Taxes Act 1988” substitute “for the | |
purposes of section 714 of the Income Tax (Earnings and Pensions) | |
Act 2003”, | |
(b) for “an employer” substitute “a person”, | |
(c) for “employee” substitute “individual”, and | 25 |
(d) for “employer”, in the second place where it occurs, substitute | |
“person”. | |
(3) In subsection (4) for the definitions of “agent”, “employee” and “employer” | |
substitute— | |
““agent” means an agent approved for the purposes of section 714 of | 30 |
the Income Tax (Earnings and Pensions) Act 2003;”. | |
244 (1) Amend Schedule 12 (provision of services through an intermediary) as | |
follows. | |
(2) In paragraph 17— | |
(a) for “deemed Schedule E payment”, in each place, substitute “deemed | 35 |
employment payment”; and | |
(b) after sub-paragraph (3) insert— | |
“(4) In this paragraph and paragraph 18 expressions that are | |
also used in Chapter 8 of Part 2 of the Income Tax | |
(Earnings and Pensions) Act 2003 have the same meaning | 40 |
as in that Chapter.” | |
(3) In paragraph 18— | |
(a) in sub-paragraph (1) for “deemed Schedule E payment” substitute | |
“deemed employment payment”; and | |
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| |
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(b) in sub-paragraph (3)(a) for “Schedule E” substitute “the employment | |
income Parts of the Income Tax (Earnings and Pensions) Act 2003”. | |
245 (1) In Schedule 20 (tax relief for expenditure of research and development), | |
amend paragraph 5 as follows. | |
(2) For sub-paragraph (1)(a) substitute— | 5 |
“(a) the earnings paid by the company to directors or | |
employees of the company;” | |
(3) After sub-paragraph (1) insert— | |
“(1ZA) In sub-paragraph (1)(a) “earnings” means earnings or amounts | |
treated as earnings which constitute employment income (see | 10 |
section 7(2)(a) or (b) of the Income Tax (Earnings and Pensions) | |
Act 2003).” | |
Capital Allowances Act 2001 (c. 2) | |
246 The Capital Allowances Act 2001 is amended as follows. | |
247 (1) Amend section 4 (capital expenditure) as follows. | 15 |
(2) For subsection (2)(b) substitute— | |
“(b) any expenditure or sum that may be allowed as a | |
deduction under a relevant provision from the taxable | |
earnings from an employment or office held by the person.” | |
(3) After subsection (2) insert— | 20 |
“(2A) In subsection (2)— | |
“relevant provision” means any of the following— | |
(a) section 262; | |
(b) section 232 of ITEPA 2003 (giving effect to mileage | |
allowance relief); | 25 |
(c) Chapters 2 to 6 of Part 5 of that Act (general | |
deductions allowed from earnings); and | |
(d) sections 613(1), 619 and 639 of ICTA (contributions to | |
pensions funds etc.), and | |
“taxable earnings” has the meaning given by section 10 of | 30 |
ITEPA 2003.” | |
(4) In subsection (3) for “emoluments” substitute “earnings”. | |
248 (1) Amend section 20 (employments and offices) as follows. | |
(2) In subsection (2)— | |
(a) for “emoluments” substitute “earnings”; and | 35 |
(b) for “do not fall within Case I or II of Schedule E” substitute “fall | |
within section 22 or 26 of ITEPA 2003”. | |
(3) In subsection (3)— | |
(a) for “those emoluments” substitute “those earnings”; and | |
(b) for “other emoluments” substitute “other taxable earnings (as | 40 |
defined by section 10 of ITEPA 2003)”. | |
249 In section 61(2) (disposal events and disposal values), in entry 2(b) of the | |
Table, for “Schedule E” substitute “ITEPA 2003”. | |
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| |
|
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| |
250 In section 63(1) (cases in which disposal value is nil) for “Schedule E” | |
substitute “ITEPA 2003”. | |
251 In section 72(3) (disposal values), in entry 2(b) of the Table, for “Schedule E” | |
substitute “ITEPA 2003”. | |
252 In section 88(c) (sales at under-value), in entry 2(b) of the Table, for | 5 |
“Schedule E” substitute “ITEPA 2003”. | |
253 In section 262 (employments and offices)— | |
(a) in paragraph (a) for “an amount to be deducted from the | |
emoluments of” substitute “a deduction from the taxable earnings | |
from”; and | 10 |
(b) in paragraph (b) for “an emolument” substitute “earnings”. | |
254 In section 423(1) (disposal value for sections 421 and 422), in entry 2(b) of the | |
Table, for “Schedule E” substitute “ITEPA 2003”. | |
255 At the end of Part 1 of Schedule 1 (abbreviations) insert— | |
| | “ITEPA 2003 | The Income Tax (Earnings and Pensions) Act 2003 (c. 00)”. | | 15 |
|
256 In Part 2 of Schedule 1 (defined expressions used in the Act), in the entry | |
relating to “United Kingdom”, after “section 830 of ICTA” insert “and section | |
41 of ITEPA 2003”. | |
Finance Act 2001 (c. 9) | |
257 For section 95 of the Finance Act 2001 (exemptions in relation to employee | 20 |
share ownership plans) substitute— | |
“95 Exemptions in relation to approved share incentive plans | |
(1) This section forms part of the SIP code (see section 488 of the Income | |
Tax (Earnings and Pensions) Act 2003 (approved share incentive | |
plans)). | 25 |
(2) Accordingly, expressions used in this section and contained in the | |
index at the end of Schedule 2 to that Act (approved share incentive | |
plans) have the meaning indicated in that index. | |
(3) Where, under an approved share incentive plan, partnership shares | |
or dividend shares are transferred by the trustees to an employee— | 30 |
(a) no ad valorem stamp duty is chargeable on any instrument | |
by which the transfer is made, and | |
(b) no stamp duty reserve tax is chargeable on any agreement by | |
the trustees to make the transfer. | |
(4) But subsection (3) does not apply to— | 35 |
(a) any instrument executed (within the meaning of the Stamp | |
Act 1891 (c. 39)) before 6th April 2003, or | |
(b) any agreement to transfer shares made before that date.” | |
258 (1) In Schedule 22 (remediation of contaminated land), amend paragraph 5 as | |
follows. | 40 |
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|
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| |
(2) For sub-paragraph (1)(a) substitute— | |
“(a) the earnings paid by the company to directors or | |
employees of the company;” | |
(3) After sub-paragraph (1) insert— | |
“(1A) In sub-paragraph (1)(a) “earnings” means earnings or amounts | 5 |
treated as earnings which constitute employment income (see | |
section 7(2)(a) or (b) of the Income Tax (Earnings and Pensions) | |
Act 2003).” | |
Social Security Contributions (Share Options) Act 2001 (c. 20) | |
259 The Social Security Contributions (Share Options) Act 2001 is amended as | 10 |
follows. | |
260 In section 2(3)(b) (effect of notice under section 1) for “section 135(3)(a) of the | |
Income and Corporation Taxes Act 1988” substitute “section 479 of the | |
Income Tax (Earnings and Pensions) Act 2003”. | |
261 (1) Amend section 3 (special provision for roll-overs) as follows. | 15 |
(2) In subsection (4)(a) for “section 136(1) of the Income and Corporation Taxes | |
Act 1988” substitute “section 485(1) to (4) of the Income Tax (Earnings and | |
Pensions) Act 2003”. | |
(3) In subsection (4)(b)(i) for “section 135(3)(a)” substitute “section 479”. | |
(4) For subsection (6) substitute— | 20 |
“(6) Subject to subsection (7), in relation to the replacement right or | |
any subsequent right, section 485(1) to (3) of the Income Tax | |
(Earnings and Pensions) Act 2003 (application of Chapter 5 of Part 7 | |
where share option exchanged for another) shall be deemed to have | |
effect (or, as the case may be, to have had effect) for the purposes of | 25 |
the determination mentioned in subsection (5) of this section— | |
(a) as if that section had effect (or, as the case may be, had had | |
effect) in relation to that right to the extent only that it is a | |
right to acquire additional shares; and | |
(b) as if the value of the consideration for the grant of the original | 30 |
right had been nil.” | |
(5) In subsection (7)(b) for “section 135 of the Income and Corporation Taxes Act | |
1988” substitute “Chapter 5 of Part 7 of the Income Tax (Earnings and | |
Pensions) Act 2003”. | |
(6) In subsection (11)(a) for “section 135(3)(a) of the Income and Corporation | 35 |
Taxes Act 1988” substitute “section 479 of the Income Tax (Earnings and | |
Pensions) Act 2003”. | |
262 In section 5(2)(c) (interpretation)— | |
(a) for “subsection (8) of section 135 of the Income and Corporation | |
Taxes Act 1988” substitute “section 483(1) of the Income Tax | 40 |
(Earnings and Pensions) Act 2003”; and | |
(b) for “that section” substitute “Chapter 5 of Part 7 of that Act”. | |
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