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(b) company within 2 years beginning with the end of the period | |
of account. | |
(6) For the purposes of this section, remuneration is paid when it— | |
(a) is treated as received by an employee for the purposes of the | |
Income Tax (Earnings and Pensions) Act 2003 by section 18, | 5 |
19, 31 or 32 of that Act (receipt of money and non-money | |
earnings), or | |
(b) would be so treated if it were not exempt income. | |
(7) Where the profits of a company carrying on life assurance business | |
are not charged under Case I of Schedule D, this section shall apply | 10 |
in calculating the profits as it applies in calculating the profits of an | |
investment company; and in any such case— | |
(a) subsection (4) above shall have effect subject to section 86 | |
below, and | |
(b) in construing section 86 below the remuneration shall be | 15 |
treated as expenses for the accounting period. | |
(8) In this section— | |
“employee” includes an office-holder and “employment” | |
correspondingly includes an office; | |
“investment company” has the same meaning as in Part IV of | 20 |
the Taxes Act 1988; and | |
“remuneration” means an amount which is or is treated as | |
earnings for the purposes of Parts 2 to 7 of the Income Tax | |
(Earnings and Pensions) Act 2003.” | |
159 In section 53(2)(f) (amendments consequential on the substitution of a new | 25 |
section 167 of ICTA) for “sections 332(2)(c) and 418(3)(a)” substitute “section | |
418(3)(a)”. | |
160 (1) Amend section 69 (chargeable events in relation to employee share | |
ownership trusts) as follows. | |
(2) In subsection (3AA)— | 30 |
(a) in paragraph (a) for “an employee share ownership” substitute “a | |
share incentive”, and | |
(b) in paragraph (b) for “Schedule 8 to the Finance Act 2000” substitute | |
“Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003”. | |
(3) In the definition of “market value” in subsection (3AC), for “in Schedule 8 to | 35 |
the Finance Act 2000” substitute “it has for the purposes of the SIP code (see | |
paragraph 92 of Schedule 2 to the Income Tax (Earnings and Pensions) Act | |
2003)”. | |
(4) In subsection (4ZA)(b)— | |
(a) for “a savings-related share option scheme within the meaning of | 40 |
Schedule 9 to the Taxes Act 1988” substitute “an SAYE option scheme | |
within the meaning of the SAYE code (see section 516(4) of the | |
Income Tax (Earnings and Pensions) Act 2003)”, and | |
(b) in sub-paragraph (ii) for “that Schedule” substitute “Schedule 3 to | |
that Act”. | 45 |
161 (1) Amend section 76 (non-approved retirement benefits schemes) as follows. | |
(2) In subsection (6C)— | |
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(a) for “paragraphs (a), (b) or (c) of section 596(1) of the Taxes Act 1988” | |
substitute “section 387(2) of the Income Tax (Earnings and Pensions) | |
Act 2003”; | |
(b) for “emoluments” in the first place where it occurs substitute | |
“earnings”; and | 5 |
(c) for “foreign emoluments within the meaning of section 192” | |
substitute “earnings and amounts treated as earnings to which | |
subsection (6D) applies”. | |
(3) After subsection (6C) insert— | |
“(6D) This subsection applies to earnings and amounts treated as | 10 |
earnings for a year of assessment if— | |
(a) the employer or office-holder is not domiciled in the United | |
Kingdom in that year, and | |
(b) the employment is with a foreign employer. | |
(6E) If there is a dispute as to whether the employee or office-holder | 15 |
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 | |
mentioned in section 42(1) of that Act.” | |
(4) In subsection (7)— | 20 |
(a) after “this section” insert— | |
““earnings and amounts treated as earnings” means earnings | |
and amounts treated as earnings which constitute | |
employment income (see section 7(2)(a) or (b) of ITEPA 2003), | |
“foreign employer” has the meaning given by section 721 of that | 25 |
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”. | |
162 In section 178(2) (setting of rates of interest)— | |
(a) in paragraph (m) omit the words “160,”, | 30 |
(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 | |
(r) Chapter 7 of Part 3 of the Income Tax (Earnings and | |
Pensions) Act 2003.”. | 35 |
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 | |
Schedule 9 to the Taxes Act 1988” substitute “an SAYE option | |
scheme”, and | 40 |
(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)— | |
(a) for “a savings-related share option scheme within the meaning of | |
Schedule 9 to the Taxes Act 1988” substitute “an SAYE option | 45 |
scheme”, and | |
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(b) in sub-paragraph (ii), for “that Schedule” substitute “Schedule 3 to | |
the Income Tax (Earnings and Pensions) Act 2003”. | |
(4) In paragraph 10 (other features)— | |
(a) for “savings-related share option schemes approved under Schedule | |
9 to the Taxes Act 1988” substitute “SAYE option schemes approved | 5 |
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) After paragraph 17 insert— | |
“18 For the purposes of this Schedule “SAYE option scheme” has the | 10 |
same meaning as in the SAYE code (see section 516 of the Income | |
Tax (Earnings and Pensions) Act 2003) (approved SAYE option | |
schemes).” | |
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 | 15 |
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) | |
Act 2003)”; and | |
(b) in sub-paragraph (2), for “section 203 of the Income and Corporation | 20 |
Taxes Act 1988 (pay as you earn)” substitute “regulations made | |
under section 684 of that Act (PAYE regulations)”. | |
Finance Act 1990 (c. 29) | |
165 The Finance Act 1990 is amended as follows. | |
166 (1) Amend section 25(2) (donations to charity by individuals) as follows. | 25 |
(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 | |
“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 | 30 |
ICTA) as follows. | |
(2) In sub-paragraph (1) for “sections 322(1)(a) and (2) and 323(1)” substitute | |
“section 322(1)(a)”. | |
(3) Omit sub-paragraph (2). | |
Finance Act 1991 (c. 31) | 35 |
168 (1) Amend section 38 of the Finance Act 1991 (employee share-schemes: non- | |
discrimination) as follows. | |
(2) Omit subsection (2). | |
(3) In subsection (6) for “Subsections (2) and” substitute “Subsection”. | |
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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 | |
“emoluments” substitute “general earnings”. | 5 |
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— | 10 |
“(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 | 15 |
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”. | 20 |
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 | 25 |
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, | 30 |
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”. | 35 |
(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 | 40 |
are taken”. | |
(9) For subsection (7) substitute— | |
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