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(3) The amount of the donations is allowed as a deduction in calculating the | |
amount of the individual’s income which is charged to tax in accordance with | |
subsection (4). | |
(4) In the case of a payment of, or on account of— | |
(a) taxable earnings from an employment, the deduction is allowed from | 5 |
the taxable earnings from the employment in calculating the net taxable | |
earnings from the employment for the relevant tax year for the | |
purposes of Part 2 (see section 11(1)); | |
(b) taxable specific income from an employment, the deduction is allowed | |
from that taxable specific income in calculating the net taxable specific | 10 |
income from the employment for the relevant tax year for the purposes | |
of Part 2 (see section 12(1)); | |
(c) taxable pension income for a pension, annuity or other item of pension | |
income, the deduction is allowed from that taxable pension income in | |
calculating the net taxable pension income for that income for the | 15 |
relevant tax year for the purposes of Part 9 (see section 567(3)); | |
(d) taxable social security income for a taxable benefit, the deduction is | |
allowed from that taxable social security income in calculating the net | |
taxable social security income for that benefit for the relevant tax year | |
for the purposes of Part 10 (see section 658(3)). | 20 |
(5) For the purposes of subsection (4) “relevant tax year” means— | |
(a) in the case of paragraphs (a) and (b), the tax year in which the donation | |
is withheld, and | |
(b) in the case of paragraphs (c) and (d), the tax year for which the income | |
referred to in subsection (1)(a) is taxable pension income or taxable | 25 |
social security income, as the case may be. | |
714 Meaning of “donations” | |
(1) For the purposes of this Part “donations” means sums which— | |
(a) are withheld by the payer under a scheme which is an approved | |
scheme at the time of the withholding, | 30 |
(b) constitute gifts by the individual to one or more specified charities | |
under the scheme, and | |
(c) satisfy the conditions (if any) set out in the scheme. | |
(2) In this section— | |
“approved scheme” means a scheme which is approved (or is of a kind | 35 |
approved) by the Inland Revenue and under which— | |
(a) the payer is required to pay sums withheld to a body which is | |
an approved agent at the time of the withholding, and | |
(b) the approved agent is required— | |
(i) to pay sums withheld to the specified charity or charities, | 40 |
or | |
(ii) in a case where the agent is itself a specified charity, to | |
retain any sum due to itself; | |
“charity” means any body of persons or trust established for charitable | |
purposes only and includes each of the bodies mentioned in section 507 | 45 |
of ICTA; | |
“specified charity” means a charity specified by the individual. | |
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(3) For the purposes of this section a body is an “approved agent” if it is approved | |
by the Inland Revenue for the purpose of paying donations to one or more | |
charities. | |
715 Approval of schemes: regulation by Treasury | |
(1) The Treasury may by regulations prescribe the circumstances in which the | 5 |
Inland Revenue may grant or withdraw approval of any— | |
(a) scheme, | |
(b) kind of scheme, or | |
(c) agent. | |
(2) The circumstances, whether relating to the terms of schemes or the | 10 |
qualifications of agents or otherwise, are to be such as the Treasury think fit. | |
(3) The Treasury may by regulations make provision— | |
(a) requiring a payer or agent who participates (or has at any time | |
participated) in an approved scheme under this Part— | |
(i) to comply, within a prescribed period, with any notice which | 15 |
the Inland Revenue give to the payer or agent to make available | |
for their inspection documents or records of a prescribed kind, | |
(ii) in prescribed circumstances, to furnish to the Inland Revenue | |
prescribed information; | |
(b) for, and in relation to, appeals to the Special Commissioners against the | 20 |
Inland Revenue’s refusal to approve, or their withdrawal of approval | |
from, any— | |
(i) scheme, | |
(ii) kind of scheme, or | |
(iii) agent; | 25 |
(c) generally for giving effect to sections 713 and 714. | |
In this subsection “prescribed” means prescribed by the regulations. | |
Part 13 | |
Supplementary provisions | |
Alteration of amounts | 30 |
716 Alteration of amounts by Treasury order | |
(1) The Treasury may by order increase or further increase the sums of money | |
specified in any of the following provisions. | |
(2) They are— | |
(a) section 179(2)(a) (limit on exception for advances for necessary | 35 |
expenses), | |
(b) section 241(3)(a) and (b) (incidental overnight expenses: overall | |
exemption limit), | |
(c) section 264(2) and (3) (annual parties and functions), | |
(d) section 287(1) (limit on exemption under Chapter 7 of Part 4: removal | 40 |
benefits and expenses), | |
(e) section 322(1) and (4) (suggestion awards: “the permitted maximum”), | |
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(f) section 323(2) (long service awards), | |
(g) section 324(6) (small gifts from third parties), and | |
(h) section 358(3)(b) (business entertainment and gifts: other exceptions). | |
(3) An order relating to section 241(3)(a) or (b) may make provision for | |
determining what earnings are treated as received on or after the date when the | 5 |
order comes into force. | |
(4) An order relating to section 287(1) applies to a change of an employee’s | |
residence where the employment change occurs on or after the day specified in | |
the order for the purpose. | |
“The employment change” here has the same meaning as in Chapter 7 of Part | 10 |
4 (see section 275). | |
Orders and regulations | |
717 Orders and regulations made by Treasury or Board | |
(1) Any power of the Treasury or the Board of Inland Revenue to make any order | |
or regulations under this Act is exercisable by statutory instrument. | 15 |
This is subject to subsection (2). | |
(2) Subsection (1) does not apply to the power conferred by section 28(5) (overseas | |
Crown employment: order excepting certain earnings). | |
(3) Any statutory instrument containing any order or regulations made by the | |
Treasury or the Board of Inland Revenue under this Act is subject to annulment | 20 |
in pursuance of a resolution of the House of Commons. | |
This is subject to subsection (4). | |
(4) Subsection (3) does not apply to any statutory instrument made under section | |
343(3) (deduction for professional membership fees: order adding certain fees). | |
Interpretation | 25 |
718 Connected persons | |
Section 839 of ICTA (how to tell whether persons are connected) applies for the | |
purposes of this Act. | |
719 Control in relation to a body corporate | |
Section 840 of ICTA (meaning of control in relation to a body corporate) applies | 30 |
for the purposes of this Act, unless otherwise indicated. | |
720 Meaning of “the Inland Revenue” etc. | |
(1) In this Act “the Inland Revenue” means any officer of the Board of Inland | |
Revenue. | |
(2) In this Act “the Board of Inland Revenue” means the Commissioners of Inland | 35 |
Revenue (as to which, see in particular the Inland Revenue Regulation Act 1890 | |
(c. 21)). | |
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(3) Functions conferred on the Board of Inland Revenue by this Act are within | |
section 4A of that Act (functions of Board exercisable by officer acting with | |
their authority). | |
721 Other definitions | |
(1) In this Act— | 5 |
“cash voucher” has the same meaning as in Chapter 4 of Part 3 (see section | |
75), | |
“credit-token” has the same meaning as in Chapter 4 of Part 3 (see section | |
92), | |
“foreign employer” means— | 10 |
(a) in the case of an employee resident in the United Kingdom, an | |
individual, partnership or body of persons resident outside the | |
United Kingdom and not resident in the United Kingdom or the | |
Republic of Ireland, and | |
(b) in the case of an employee not resident in the United Kingdom, | 15 |
an individual, partnership or body of persons resident outside | |
and not resident in the United Kingdom, | |
“non-cash voucher” has the same meaning as in Chapter 4 of Part 3 (see | |
section 84), | |
“the normal self-assessment filing date”, in relation to a tax year, means | 20 |
the 31st January following the tax year, | |
“personal representatives”, in relation to a person who has died, means— | |
(a) in the United Kingdom, persons responsible for administering | |
the estate of the deceased, and | |
(b) in a country or territory outside the United Kingdom, those | 25 |
persons having functions under its law equivalent to those of | |
administering the estate of the deceased, | |
“tax year” means, in relation to income tax, a year for which any Act | |
provides for income tax to be charged, and | |
“the tax year 2003–04” means the tax year beginning on 6th April 2003 | 30 |
(and any corresponding expression in which two years are similarly | |
mentioned is to be read in the same way). | |
(2) In the application of this Act to Scotland, “assignment” means an assignation. | |
(3) Any reference in this Act to being domiciled in the United Kingdom is to be | |
read as a reference to being domiciled in any part of the United Kingdom. | 35 |
(4) For the purposes of this Act the following are members of a person’s family— | |
(a) the person’s spouse, | |
(b) the person’s children and their spouses, | |
(c) the person’s parents, and | |
(d) the person’s dependants. | 40 |
(5) For the purposes of this Act the following are members of a person’s family or | |
household— | |
(a) members of the person’s family, | |
(b) the person’s domestic staff, and | |
(c) the person’s guests. | 45 |
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(6) The following provisions (which relate to the legal equality of illegitimate | |
children) are to be disregarded in interpreting references in this Act to a child | |
or children— | |
(a) section 1 of the Family Law Reform Act 1987 (c. 42); | |
(b) the paragraph inserted in Schedule 1 to the Interpretation Act 1978 (c. | 5 |
30) by paragraph 73 of Schedule 2 to the 1987 Act; | |
(c) section 1(2) of the Law Reform (Parent and Child) (Scotland) Act 1986 | |
(c. 9); | |
(d) Article 155 of the Children (Northern Ireland) Order 1995 (S.I. 1995/755 | |
(N.I. 2)). | 10 |
(7) In the employment income Parts any reference to earnings which is not limited | |
by the context— | |
(a) to earnings within Chapter 1 of Part 3, or | |
(b) to any other particular description of earnings, | |
includes a reference to any amount treated as earnings by any of the provisions | 15 |
mentioned in section 7(5) (meaning of “employment income” etc.). | |
Amendments, repeals, citation etc. | |
722 Consequential amendments | |
Schedule 6 contains consequential amendments. | |
723 Commencement and transitional provisions and savings | 20 |
(1) This Act comes into force on 6th April 2003 and has effect— | |
(a) for the purposes of income tax, for the tax year 2003-04 and subsequent | |
tax years, and | |
(b) for the purposes of corporation tax, for accounting periods ending after | |
5th April 2003. | 25 |
(2) Subsection (1) is subject to Schedule 7, which contains transitional provisions | |
and savings. | |
724 Repeals and revocations | |
(1) The enactments specified in Part 1 of Schedule 8 (which include certain spent | |
provisions) are repealed to the extent specified. | 30 |
(2) The instruments specified in Part 2 of that Schedule are revoked to the extent | |
specified. | |
725 Citation | |
This Act may be cited as the Income Tax (Earnings and Pensions) Act 2003. | |
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