Income Tax (Earnings and Pensions) Bill

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House of Commons

Session 2002 - 03
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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 CO 2 emissions figure
Cars: appropriate percentage: first registered on or after 1st January 1998
      135         Car with a CO 2 emissions figure: pre-October 1999 registration
      136         Car with a CO 2 emissions figure: post-September 1999 registration
      137         Car with a CO 2 emissions figure: bi-fuel cars
      138         Car with a CO 2 emissions figure: automatic car for a disabled employee
      139         Car with a CO 2 emissions figure: the appropriate percentage
      140         Car without a CO 2 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

Income Tax (Earnings and Pensions) Bill
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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

© Parliamentary copyright 2002
Revised 4 December 2002