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“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)). | |
(2) Accordingly, expressions used in this section and contained in the | 5 |
index at the end of Schedule 2 to that Act (approved share incentive | |
plans) have the meaning indicated by that index. | |
(3) Where, under an approved share incentive plan, partnership shares | |
or dividend shares are transferred by the trustees to an employee— | |
(a) no ad valorem stamp duty is chargeable on any instrument | 10 |
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— | |
(a) any instrument executed (within the meaning of the Stamp | 15 |
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. | |
(2) For sub-paragraph (1)(a) substitute— | 20 |
“(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 | |
treated as earnings which constitute employment income (see | 25 |
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 | |
follows. | 30 |
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. | |
(2) In subsection (4)(a) for “section 136(1) of the Income and Corporation Taxes | 35 |
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— | |
“(6) Subject to subsection (7), in relation to the replacement right or | 40 |
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 | |
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effect (or, as the case may be, to have had effect) for the purposes of | |
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 | 5 |
(b) as if the value of the consideration for the grant of the original | |
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”. | 10 |
(6) In subsection (11)(a) 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”. | |
262 In section 5(2)(c) (interpretation)— | |
(a) for “subsection (8) of section 135 of the Income and Corporation | 15 |
Taxes Act 1988” substitute “section 483(1) of the Income Tax | |
(Earnings and Pensions) Act 2003”; and | |
(b) for “that section” substitute “Chapter 5 of Part 7 of that Act”. | |
State Pension Credit Act 2002 (c. 16) | |
263 (1) Section 17(1) of the State Pension Credit Act 2002 (other interpretation | 20 |
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 | |
(c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act | |
2003”. | 25 |
(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 | |
Pensions) Act 2003”. | |
(4) In paragraph (b) of the definition of “war disablement pension”, for | 30 |
“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”. | |
(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” | 35 |
substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) | |
Act 2003”. | |
Tax Credits Act 2002 (c. 21) | |
264 The Tax Credits Act 2002 is amended as follows. | |
265 (1) Amend section 25 (payments of working tax credit by employers) as follows. | 40 |
(2) In subsection (1) for “Schedule E payments” substitute “payments of, or on | |
account of, PAYE income”. | |
(3) In subsection (5) for “Schedule E payment” substitute “payment of, or on | |
account of, PAYE income”. | |
(4) Omit subsection (6). | 45 |
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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”. | |
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 | 5 |
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 | |
(c. 1)” substitute “section 641 of the Income Tax (Earnings and Pensions) Act | |
2003”. | 10 |
(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 | |
Pensions) Act 2003”. | |
(4) In paragraph (b) of the definition of “war disablement pension”, for | 15 |
“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”. | |
(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” | 20 |
substitute “section 641(1)(e) or (f) of the Income Tax (Earnings and Pensions) | |
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 | 25 |
Benefits Act 1992 (c. 4) (Part 12ZA — statutory paternity pay: | |
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 | 30 |
earnings (as defined by section 7 of this Act). | |
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). | 35 |
(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). | |
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Schedule 7 | |
Section 723 | |
Transitionals and savings | |
Part 1 | |
Continuity of the law | |
1 The repeal of provisions and their enactment in a rewritten form in this Act | 5 |
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— | |
(a) has been made or done, or has effect as if made or done, under or for | |
the purposes of a repealed provision, and | 10 |
(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 | |
purposes of the rewritten provision. | |
4 Any reference (express or implied) in any enactment, instrument or | 15 |
document to— | |
(a) a rewritten provision, or | |
(b) things done or falling to be done under or for the purposes of a | |
rewritten provision, | |
is to be read as including, in relation to times, circumstances or purposes in | 20 |
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 | |
document to— | 25 |
(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 | |
relation to which any corresponding rewritten provision has effect, a | 30 |
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). | |
7 Paragraphs 4 and 5 apply only in so far as the context permits. | 35 |
Part 2 | |
Employment income: charge to tax | |
Taxable earnings | |
8 (1) The charging provisions of Chapters 4 and 5 of Part 2— | |
(a) apply for the purpose of determining taxable earnings from an | 40 |
employment in the tax year 2003-04 or any later tax year, and | |
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(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. | |
(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. | 5 |
This is subject to sub-paragraph (3). | |
(3) If— | |
(a) any general earnings within subsection (1) of section 22 (chargeable | |
overseas earnings) or 26 (foreign earnings of resident employee) are | |
for a tax year before 1989-90, | 10 |
(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) either— | |
(i) the employee is not resident in the United Kingdom in the | |
remittance year, or | 15 |
(ii) the employment is not held in the remittance year, | |
subsection (2) of section 22 or 26 does not apply to the earnings. | |
(4) Section 30 (treatment of earnings for year in which employment not held) | |
does not apply where any of the tax years mentioned in subsection (2) or (3) | |
of that section is a tax year before the tax year 1989-90. | 20 |
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 | |
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 | 25 |
constituting or being treated as taxable earnings from the employment | |
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 | 30 |
United Kingdom in that year. | |
(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). | 35 |
10 Section 36(2) (the definition of “blocked earnings”) applies in relation to | |
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 | 40 |
(b) the following paragraph for paragraph (c)— | |
“(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.”. | 45 |
11 (1) This paragraph applies where a claimant— | |
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(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. | 5 |
(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 | 10 |
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 | 15 |
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. | 20 |
(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 | 25 |
year, or | |
(b) as applied by section 9(2) of TCGA 1992 (residence, including | |
temporary residence) has effect where the dispute relates to the | |
amount of capital gains tax charged for the tax year 2002-03 or any | |
earlier tax year. | 30 |
(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. | |
Application of provisions to agency workers | |
13 In relation to times before 6th April 2003, Chapter 7 of Part 2 applies with the | 35 |
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 | |
Schedule E”, | |
(b) references to “earnings” are to be read as references to | 40 |
“emoluments”, and | |
(c) references to “this Chapter” are to be read as references to “section | |
134 of ICTA”. | |
14 Section 44(2) does not apply in relation to— | |
(a) payments made before 6th April 1998 other than payments made in | 45 |
respect of services provided on or after that date, or | |
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(b) payments made on or after that date in respect of services provided | |
before that date, | |
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). | 5 |
Part 3 | |
Employment income: earnings and benefits etc. treated as earnings | |
Taxable benefits: dispensations relating to benefits within provisions not applicable to lower- | |
paid employments | |
15 (1) An existing notification— | 10 |
(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 | |
(dispensations relating to benefits within provisions not applicable | |
to lower-paid employment), | |
and accordingly, where an existing notification is revoked under that section | 15 |
for any period before 6th April 2003, subsection (8) or (9) of that section | |
extends to tax years before the tax year 2003-04. | |
(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 | 20 |
of payments, benefits or facilities); and | |
(b) includes a notification whose validity was preserved by subsection | |
(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 | 25 |
(expenses) or 10 (residual liability to charge) of Part 3. | |
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 | 30 |
employee of a vehicle. | |
(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 | 35 |
to benefits within provisions not applicable to lower-paid | |
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. | 40 |
(3) In this paragraph “business travel”, “company vehicle” and “mileage | |
allowance payment” have the same meanings as in Chapter 2 of Part 4. | |
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