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State Pension Credit Act 2002 (c. 16) | |
263 (1) Section 17(1) of the State Pension Credit Act 2002 (other interpretation | |
provisions) is amended as follows. | |
(2) In paragraph (b) of the definition of “foreign war disablement pension” for | |
“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 | 5 |
(c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act | |
2003”. | |
(3) In paragraph (b) of the definition of “foreign 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 | 10 |
Pensions) Act 2003”. | |
(4) 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”. | 15 |
(5) 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”. | |
Tax Credits Act 2002 (c. 21) | 20 |
264 The Tax Credits Act 2002 is amended as follows. | |
265 (1) Amend section 25 (payments of working tax credit by employers) as follows. | |
(2) In subsection (1) for “Schedule E payments” substitute “payments of, or on | |
account of, PAYE income”. | |
(3) In subsection (5) for “Schedule E payments” substitute “payments of, or on | 25 |
account of, PAYE income”. | |
(4) Omit subsection (6). | |
266 In section 29(5) (recovery of overpayments) for “regulations under section | |
203 of the Income and Corporation Taxes Act 1988 (PAYE)” substitute | |
“PAYE regulations”. | 30 |
State Pension Credit Act (Northern Ireland) 2002 (c. 14 (N.I.)) | |
267 (1) Section 17(1) of the State Pension Credit Act (Northern Ireland) 2002 (other | |
interpretation provisions) is amended as follows. | |
(2) In paragraph (b) of the definition of “foreign war disablement pension” for | |
“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 | 35 |
(c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act | |
2003”. | |
(3) In paragraph (b) of the definition of “foreign 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 | 40 |
Pensions) Act 2003”. | |
(4) In paragraph (b) of the definition of “war disablement pension”, for | |
“subsection (1) of section 315 of the Income and Corporation Taxes Act 1988 | |
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(4) (c. 1)” substitute “any of paragraphs (a) to (f) of section 641(1) of the Income | |
Tax (Earnings and Pensions) Act 2003”. | |
(5) 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) | 5 |
Act 2003”. | |
Certain corresponding Northern Ireland provision | |
268 (1) This paragraph applies if provision is made for Northern Ireland which | |
corresponds to section 171ZJ of the Social Security Contributions and | |
Benefits Act 1992 (c. 4) (Part 12ZA — statutory paternity pay: | 10 |
supplementary) (which was inserted by section 2 of the Employment Act | |
2002 (c. 22)). | |
(2) In the Northern Ireland provision any reference to emoluments chargeable | |
to income tax under Schedule E is to be construed as a reference to general | |
earnings (as defined by section 7 of this Act). | 15 |
269 (1) This paragraph applies if provision is made for Northern Ireland which | |
corresponds to section 171ZS of the Social Security Contributions and | |
Benefits Act 1992 (Part 12ZA — statutory adoption pay: supplementary) | |
(which was inserted by section 4 of the Employment Act 2002). | |
(2) In the Northern Ireland provision any reference to emoluments chargeable | 20 |
to income tax under Schedule E is to be construed as a reference to general | |
earnings (as defined by section 7 of this Act). | |
Schedule 7 | |
Section 723 | |
Transitionals and savings | |
Part 1 | 25 |
Continuity of the law | |
1 The repeal of provisions and their enactment in a rewritten form in this Act | |
does not affect the continuity of the law. | |
2 Paragraph 1 does not apply to any change in the law made by this Act. | |
3 Any subordinate legislation or other thing which— | 30 |
(a) has been made or done, or has effect as if made or done, under or for | |
the purposes of a repealed provision, and | |
(b) is in force or effective immediately before the commencement of the | |
corresponding rewritten provision, | |
has effect after that commencement as if made or done under or for the | 35 |
purposes of the rewritten provision. | |
4 Any reference (express or implied) in any enactment, instrument or | |
document to— | |
(a) a rewritten provision, or | |
(b) things done or falling to be done under or for the purposes of a | 40 |
rewritten provision, | |
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is to be read as including, in relation to times, circumstances or purposes in | |
relation to which any corresponding repealed provision had effect, a | |
reference to the repealed provision or (as the case may be) things done or | |
falling to be done under or for the purposes of the repealed provision. | |
5 Any reference (express or implied) in any enactment, instrument or | 5 |
document to— | |
(a) a repealed provision, or | |
(b) things done or falling to be done under or for the purposes of a | |
repealed provision, | |
is to be read as including, in relation to times, circumstances or purposes in | 10 |
relation to which any corresponding rewritten provision has effect, a | |
reference to the rewritten provision or (as the case may be) things done or | |
falling to be done under or for the purposes of the rewritten provision. | |
6 Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act | |
1978 (c. 30) (but are without prejudice to any other provision of that Act). | 15 |
7 Paragraphs 4 and 5 apply only in so far as the context permits. | |
Part 2 | |
Employment income: charge to tax | |
Taxable earnings | |
8 (1) The charging provisions of Chapters 4 and 5 of Part 2— | 20 |
(a) apply for the purpose of determining taxable earnings from an | |
employment in the tax year 2003-04 or any later tax year, and | |
(b) accordingly apply where (for the purposes of those Chapters) | |
general earnings are received, or remitted to the United Kingdom, in | |
that or any later tax year. | 25 |
(2) But they apply to general earnings for a tax year before the tax year 2003-04, | |
as well as to those for that or any later year. | |
This is subject to sub-paragraph (3). | |
(3) If— | |
(a) any general earnings within subsection (1) of section 22 (chargeable | 30 |
overseas earnings) or 26 (foreign earnings of resident employee) are | |
for a tax year before 1989-90, | |
(b) the earnings are remitted to the United Kingdom in the tax year 2003- | |
04 or any later tax year (“the remittance year”), and | |
(c) the employee is not resident in the United Kingdom in the remittance | 35 |
year, | |
subsection (2) of section 22 or 26 does not apply to the earnings. | |
Relief for delayed remittances | |
9 (1) This paragraph applies where one or more of the earlier tax years referred to | |
in section 35(3)(b) (treatment of delayed remittances as taxable earnings in | 40 |
earlier tax years) is a tax year before the tax year 2003-04. | |
(2) References (whether express or implied) in sections 35 and 36 to earnings | |
constituting or being treated as taxable earnings from the employment | |
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(2) under section 22(2) or 26(2) in such an earlier tax year are to be construed for | |
the purposes of the charging of income tax under Case III of Schedule E in | |
that year as references to earnings constituting or being treated as | |
emoluments of the employment falling within that Case and received in the | |
United Kingdom in that year. | 5 |
(3) For the purposes of this paragraph the reference in sub-paragraph (2) to the | |
receipt of income in the United Kingdom is to be construed in accordance | |
with section 132(5) of ICTA (meaning of emoluments received in the United | |
Kingdom). | |
10 Section 36(2) (the definition of “blocked earnings”) applies in relation to | 10 |
emoluments of the employment received in a country or territory outside | |
the United Kingdom in a tax year before the tax year 2003-04 with the | |
substitution of— | |
(a) “Emoluments” for “General earnings”, and | |
(b) the following paragraph for paragraph (c)— | 15 |
“(c) would have constituted emoluments of the | |
employment on which income tax would have | |
been charged under Case III of Schedule E in that | |
year if they had been so transferred.”. | |
11 (1) This paragraph applies where a claimant— | 20 |
(a) makes an election under section 36 for the purposes of a claim for | |
relief under section 35, and | |
(b) has made a previous claim for relief under section 585 of ICTA (relief | |
from tax on delayed remittances) in respect of delayed remittances | |
from the same employment. | 25 |
(2) Section 36(6) (limit on amount of remittances allocated to a previous tax | |
year) applies as if, in the definition of “PC”, the reference to the amount of | |
remittances treated as taxable earnings from the employment in the tax year | |
in question as a result of a previous claim by the claimant under section 35 | |
includes a reference to the amount of remittances treated as income from the | 30 |
employment received in the United Kingdom in that year as a result of a | |
previous claim by the claimant under section 585 of ICTA. | |
(3) For the purposes of this paragraph the reference in sub-paragraph (2) to the | |
receipt of income in the United Kingdom is to be construed in accordance | |
with section 132(5) of ICTA (meaning of emoluments received in the United | 35 |
Kingdom). | |
Disputes as to domicile or ordinary residence | |
12 (1) Nothing in sections 42 and 43 (disputes as to domicile or ordinary residence) | |
has effect where the dispute relates to the amount of income charged to tax | |
for the tax year 2002-03 or any earlier tax year. | 40 |
(2) Nothing in those sections— | |
(a) as applied by section 645(4C) of ICTA (earnings from pensionable | |
employment) or section 76(6E) of FA 1989 (non-approved retirement | |
benefits schemes) has effect where the dispute relates to the amount | |
of income charged to tax for the tax year 2002-03 or any earlier tax | 45 |
year, or | |
(b) as applied by section 9(2) of TCGA 1992 (residence, including | |
temporary residence) has effect where the dispute relates to the | |
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(b) amount of capital gains tax charged for the tax year 2002-03 or any | |
earlier tax year. | |
(3) Accordingly, section 207 of ICTA (disputes as to domicile or ordinary | |
residence) continues to apply to the disputes mentioned in sub-paragraphs | |
(1) and (2) whether they arise before or after 6th April 2003. | 5 |
Application of provisions to agency workers | |
13 In relation to times before 6th April 2003, Chapter 7 of Part 2 applies with the | |
following modifications— | |
(a) references to “employment income of the worker” are to be read as | |
references to “income of the worker chargeable to tax under | 10 |
Schedule E”, | |
(b) references to “earnings” are to be read as references to | |
“emoluments”, and | |
(c) references to “this Chapter” are to be read as references to “section | |
134 of ICTA”. | 15 |
14 Section 44(2) does not apply in relation to— | |
(a) payments made before 6th April 1998 other than payments made in | |
respect of services provided on or after that date, or | |
(b) payments made on or after that date in respect of services provided | |
before that date, | 20 |
if in providing the services the worker is or would be a sub-contractor within | |
the meaning of section 560 of ICTA (sub-contractors in the construction | |
industry). | |
Part 3 | |
Employment income: earnings and benefits etc. treated as earnings | 25 |
Taxable benefits: dispensations relating to benefits within provisions not applicable to lower- | |
paid employments | |
15 (1) An existing notification— | |
(a) is not affected by any of the repeals made by this Act, but | |
(b) continues in force as if it were a dispensation given under section 65 | 30 |
(dispensations relating to benefits within provisions not applicable | |
to lower-paid employment), | |
and accordingly, where an existing notification is revoked under that section | |
for any period before 6th April 2003, subsection (8) or (9) of that section | |
extends to tax years before the tax year 2003-04. | 35 |
(2) In this paragraph an “existing notification”— | |
(a) means a notification which, immediately before 6th April 2003, was | |
in force under section 166(1) of ICTA (notice of nil liability in respect | |
of payments, benefits or facilities); and | |
(b) includes a notification whose validity was preserved by subsection | 40 |
(4) of that section (notifications given under section 199 of FA 1970); | |
but a notification within paragraph (b) only continues to have effect under | |
this paragraph in respect of any liability to tax arising by virtue of Chapter 3 | |
(expenses) or 10 (residual liability to charge) of Part 3. | |
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16 (1) This paragraph applies if— | |
(a) mileage allowance payments are made to an employee in respect of | |
the use of a vehicle that is not a company vehicle, or | |
(b) mileage allowance relief is available in respect of the use by an | |
employee of a vehicle. | 5 |
(2) Any notification under section 166(1) of ICTA (notice of nil liability in | |
respect of payments, benefits or facilities) which— | |
(a) was in force immediately before 6th April 2002, and | |
(b) has effect as a dispensation under section 65 (dispensations relating | |
to benefits within provisions not applicable to lower-paid | 10 |
employment), | |
does not apply in relation to payments made, or benefits or facilities | |
provided, in respect of expenses incurred in connection with the use of the | |
vehicle by the employee for business travel. | |
(3) In this paragraph “business travel”, “company vehicle” and “mileage | 15 |
allowance payment” have the same meanings as in Chapter 2 of Part 4. | |
Taxable benefits: the benefits code | |
17 (1) In relation to times before 6th April 2003, references in the benefits code to | |
“employment”, “employed”, “employee” and “employer” are to be read in | |
accordance with this paragraph. | 20 |
(2) In relation to the Chapters of the benefits code listed in section 216(4) | |
(provisions not applicable to lower-paid employments), the references | |
mentioned in sub-paragraph (1) are to be read in accordance with section 66 | |
(meaning of employment and related expressions) but as if in subsection | |
(1)(a) there were substituted “an employment to which Chapter 2 of Part 5 | 25 |
of ICTA applies” for “a taxable employment under Part 2”. | |
(3) In relation to any other Chapters of the benefits code, the references | |
mentioned in sub-paragraph (1) are to be read in accordance with section 66 | |
but as if in subsection (1)(a) there were substituted “an employment the | |
emoluments of which fall to be assessed under Schedule E” for “a taxable | 30 |
employment under Part 2”. | |
(4) Where this paragraph applies, Chapter 11 of Part 3 (exclusion of lower-paid | |
employments from parts of benefits code) does not apply. | |
(5) This paragraph is subject to paragraphs 18(2), 24, 27(3), 29(4) and 31(2) of this | |
Schedule. | 35 |
Taxable benefits: vouchers and credit-tokens | |
18 (1) For the purpose of applying sections 82 to 89 (non-cash vouchers) in relation | |
to times before 6th April 2003, Chapter 4 of Part 3 applies with the following | |
modification. | |
(2) In section 89(1)(c) (reduction for meal vouchers) substitute “an employment | 40 |
which is not an employment within the meaning of section 167(1)(b) of | |
ICTA” for “lower-paid employment within the meaning of Chapter 11 of this | |
Part (see section 217)”. | |
19 (1) This paragraph applies to a notification which, immediately before 6th April | |
2003, was in force under section 144(1) of ICTA (notice of nil liabilities in | 45 |
respect of vouchers or credit-tokens). | |
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(2) The notification— | |
(a) is not affected by any repeals made by this Act, but | |
(b) continues in force as if it were a dispensation given under section 96 | |
(dispensations relating to vouchers or credit-tokens), | |
and accordingly, where the notification is revoked under that section for any | 5 |
period before 6th April 2003, subsection (7) or (8) of that section extends to | |
tax years before the tax year 2003-04. | |
20 (1) This paragraph applies if— | |
(a) mileage allowance payments are made to an employee in respect of | |
the use of a vehicle that is not a company vehicle, or | 10 |
(b) mileage allowance relief is available in respect of the use by an | |
employee of a vehicle. | |
(2) Any notification under section 144(1) of ICTA (notice of nil liability in | |
respect of vouchers or credit-tokens) which— | |
(a) was in force immediately before 6th April 2002, and | 15 |
(b) has effect as a dispensation under section 96 (dispensations relating | |
to vouchers or credit-tokens), | |
does not apply in relation to cash vouchers, non-cash vouchers or credit- | |
tokens provided in respect of expenses incurred in connection with the use | |
of the vehicle by the employee for business travel. | 20 |
(3) In this paragraph “business travel”, “company vehicle” and “mileage | |
allowance payment” have the same meanings as in Chapter 2 of Part 4. | |
Taxable benefits: living accommodation | |
21 (1) Section 107 (special rule for calculating cost of providing accommodation) | |
does not apply if the employee first occupied the living accommodation | 25 |
before 31st March 1983. | |
(2) Nothing in this paragraph affects the operation of section 107 as applied by | |
section 398(2)(b) or 415(2)(b). | |
Taxable benefits: cars, vans and related benefits | |
22 (1) In relation to a capital sum contributed by the employee before 6th April | 30 |
2003, section 132 (cars: capital contributions by employee) applies with the | |
following modifications. | |
(2) In subsection (1)(b) substitute “under sections 168A to 168C of ICTA in | |
determining the price of the car as regards a year” for “in calculating the cash | |
equivalent of the benefit of the car”. | 35 |
(3) In subsection (2)— | |
(a) omit paragraph (a), and | |
(b) in paragraph (b) substitute “the tax years after the tax year in which | |
the contribution was made which are” for “subsequent”. | |
23 (1) In relation to a capital sum contributed by the employee before 6th April | 40 |
2003, section 147 (classic cars: 15 years of age or more) applies with the | |
following modifications. | |
(2) In subsection (5)(b) substitute “under section 168F(3) of ICTA in determining | |
the price of the car as regards a year” for “in determining the market value | |
of the car”. | 45 |
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