Income Tax (Earnings and Pensions) Bill

House of Commons portcullis

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

Income Tax (Earnings and Pensions) Bill

Income Tax (Earnings and Pensions) Bill

[AS AMENDED IN THE JOINT COMMITTEE]

Contents
Part 1
Overview
      1         Overview of contents of this Act
      2         Abbreviations and defined expressions
Part 2
Employment income: charge to tax
Chapter 1
Introduction
      3         Structure of employment income Parts
      4         “Employment” for the purposes of the employment income Parts
      5         Application to offices and office-holders
Chapter 2
Tax on employment income
      6         Nature of charge to tax on employment income
      7         Meaning of “employment income”, “general earnings” and “specific
employment income”
      8         Meaning of “exempt income”
Chapter 3
Operation of tax charge
      9         Amount of employment income charged to tax
      10         Meaning of “taxable earnings” and “taxable specific income”
      11         Calculation of “net taxable earnings”
      12         Calculation of “net taxable specific income”
      13         Person liable for tax

Bill 42 53/2

Income Tax (Earnings and Pensions) Bill
ii

Chapter 4
Taxable earnings: rules applying to employee resident, ordinarily resident and
domiciled in UK
Taxable earnings
      14         Taxable earnings under this Chapter: introduction
Employees resident, ordinarily resident and domiciled in UK
      15         Earnings for year when employee resident, ordinarily resident and domiciled
in UK
Year for which general earnings are earned
      16         Meaning of earnings “for” a tax year
      17         Treatment of earnings for year in which employment not held
When general earnings are received
      18         Receipt of money earnings
      19         Receipt of non-money earnings
Chapter 5
Taxable earnings: rules applying to employee resident, ordinarily resident or
domiciled outside UK
Taxable earnings
      20         Taxable earnings under this Chapter: introduction
Employees resident and ordinarily resident in UK
      21         Earnings for year when employee resident and ordinarily resident, but not
domiciled, in UK, except chargeable overseas earnings
      22         Chargeable overseas earnings for year when employee resident and
ordinarily resident, but not domiciled, in UK
      23         Calculation of “chargeable overseas earnings”
      24         Limit on chargeable overseas earnings where duties of associated
employment performed in UK
Employees resident but not ordinarily resident in UK
      25         UK-based earnings for year when employee resident, but not ordinarily
resident, in UK
      26         Foreign earnings for year when employee resident, but not ordinarily
resident, in UK
Employees not resident in UK
      27         UK-based earnings for year when employee not resident in UK

Income Tax (Earnings and Pensions) Bill
iii

Special class of earnings for purposes of sections 25 to 27
      28         Meaning of “general earnings from overseas Crown employment subject to
UK tax”
Year for which general earnings are earned
      29         Meaning of earnings “for” a tax year
      30         Treatment of earnings for year in which employment not held
When general earnings are received or remitted
      31         Receipt of money earnings
      32         Receipt of non-money earnings
      33         Earnings remitted to the United Kingdom
      34         Earnings remitted to the United Kingdom: further provisions about UK-
linked debts
Relief for delayed remittances
      35         Relief for delayed remittances
      36         Election in respect of delayed remittances
      37         Claims for relief on delayed remittances
Place of performance of duties of employment
      38         Earnings for period of absence from employment
      39         Duties in UK merely incidental to duties outside UK
      40         Duties on board vessel or aircraft
      41         Employment in UK sector of continental shelf
Chapter 6
Disputes as to domicile or ordinary residence
      42         Board to determine dispute as to domicile or ordinary residence
      43         Appeal against Board’s decision on domicile or ordinary residence
Chapter 7
Application of provisions to agency workers
Agency workers
      44         Treatment of workers supplied by agencies
      45         Arrangements with agencies
      46         Cases involving unincorporated bodies etc.
Supplementary
      47         Interpretation of this Chapter

Income Tax (Earnings and Pensions) Bill
iv

Chapter 8
Application of provisions to workers under arrangements made by
intermediaries
Application of this Chapter
      48         Scope of this Chapter
      49         Engagements to which this Chapter applies
      50         Worker treated as receiving earnings from employment
      51         Conditions of liability where intermediary is a company
      52         Conditions of liability where intermediary is a partnership
      53         Conditions of liability where intermediary is an individual
The deemed employment payment
      54         Calculation of deemed employment payment
      55         Application of rules relating to earnings from employment
      56         Application of Income Tax Acts in relation to deemed employment
Supplementary provisions
      57         Earlier date of deemed employment payment in certain cases
      58         Relief in case of distributions by intermediary
      59         Provisions applicable to multiple intermediaries
      60         Meaning of “associate”
      61         Interpretation
Part 3
Employment income: earnings and benefits etc. treated as earnings
Chapter 1
Earnings
      62         Earnings
Chapter 2
Taxable benefits: the benefits code
The benefits code
      63         The benefits code
      64         Relationship between earnings and benefits code
      65         Dispensations relating to benefits within provisions not applicable to lower-
paid employment
General definitions for benefits code
      66         Meaning of “employment” and related expressions
      67         Meaning of “director” and “full-time working director”
      68         Meaning of “material interest” in a company

Income Tax (Earnings and Pensions) Bill
v

      69         Extended meaning of “control”
Chapter 3
Taxable benefits: expenses payments
      70         Sums in respect of expenses
      71         Meaning of paid or put at disposal by reason of the employment
      72         Sums in respect of expenses treated as earnings
Chapter 4
Taxable benefits: vouchers and credit-tokens
Cash vouchers: introduction
      73         Cash vouchers to which this Chapter applies
      74         Provision for, or receipt by, member of employee’s family
Meaning of "cash voucher"
      75         Meaning of “cash voucher”
      76         Sickness benefits-related voucher
      77         Apportionment of cost of provision of voucher
Cash vouchers: exceptions
      78         Voucher made available to public generally
      79         Voucher issued under approved scheme
      80         Vouchers where payment of sums exempt from tax
Benefit of cash voucher treated as earnings
      81         Benefit of cash voucher treated as earnings
Non-cash vouchers: introduction
      82         Non-cash vouchers to which this Chapter applies
      83         Provision for, or receipt by, member of employee’s family
Meaning of "non-cash voucher"
      84         Meaning of “non-cash voucher”
Non-cash voucher: exceptions
      85         Non-cash voucher made available to public generally
      86         Transport vouchers under pre-26th March 1982 arrangements
Benefit of non-cash voucher treated as earnings
      87         Benefit of non-cash voucher treated as earnings
      88         Year in which earnings treated as received
      89         Reduction for meal vouchers

Income Tax (Earnings and Pensions) Bill
vi

Credit-tokens: introduction
      90         Credit-tokens to which this Chapter applies
      91         Provision for, or use by, member of employee’s family
Meaning of "credit-token"
      92         Meaning of “credit-token”
Credit-tokens: exception
      93         Credit-token made available to public generally
Benefit of credit-token treated as earnings
      94         Benefit of credit-token treated as earnings
General supplementary provisions
      95         Disregard for money, goods or services obtained
      96         Dispensations relating to vouchers or credit-tokens
Chapter 5
Taxable benefits: living accommodation
Living accommodation
      97         Living accommodation to which this Chapter applies
Exceptions
      98         Accommodation provided by local authority
      99         Accommodation provided for performance of duties
      100         Accommodation provided as result of security threat
      101         Chevening House
Benefit of living accommodation treated as earnings
      102         Benefit of living accommodation treated as earnings
Calculation of cash equivalent
      103         Method of calculating cash equivalent
      104         General rule for calculating cost of providing accommodation
Accommodation costing £75,000 or less
      105         Cash equivalent: cost of accommodation not over £75,000
Accommodation costing more than £75,000
      106         Cash equivalent: cost of accommodation over £75,000
      107         Special rule for calculating cost of providing accommodation

Income Tax (Earnings and Pensions) Bill
vii

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

© Parliamentary copyright 2003
Revised 12 February 2003