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Income Tax (Earnings and Pensions) Bill


Income Tax (Earnings and Pensions) Bill

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Armed forces

      296        Armed forces’ leave travel facilities

      297        Armed forces’ food, drink and mess allowances

      298        Reserve and auxiliary forces’ training allowances

Crown employees

      299        Crown employees’ foreign service allowances

Consuls, foreign agents etc.

      300        Consuls

      301        Official agents

      302        Consular employees

Visiting forces and staff of designated allied headquarters

      303        Visiting forces and staff of designated allied headquarters

Detached national experts

      304        Experts seconded to European Commission

Offshore oil and gas workers

      305        Offshore oil and gas workers: mainland transfers

Miners etc.

      306        Miners etc: coal and allowances in lieu of coal

Chapter 9

Exemptions: pension provision

      307        Death or retirement benefit provision

      308        Exemption of contributions to approved personal pension arrangements

Chapter 10

Exemptions: termination of employment

Redundancy payments

      309        Limited exemptions for statutory redundancy payments

Outplacement benefits

      310        Counselling and other outplacement services

      311        Retraining courses

      312        Recovery of tax

 
 

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Chapter 11

Miscellaneous exemptions

Living accommodation

      313        Repairs and alterations to living accommodation

      314        Council tax etc. paid for certain living accommodation

      315        Limited exemption for expenses connected with certain living

accommodation

Work accommodation, supplies etc.

      316        Accommodation, supplies and services used in employment duties

Workplace meals

      317        Subsidised meals

Childcare

      318        Care for children

Telephones and computer equipment

      319        Mobile telephones

      320        Limited exemption for computer equipment

Awards and gifts

      321        Suggestion awards

      322        Suggestion awards: “the permitted maximum”

      323        Long service awards

      324        Small gifts from third parties

Overseas medical treatment

      325        Overseas medical treatment

Expenses incidental to sale etc. of asset

      326        Expenses incidental to transfer of a kind not normally met by transferor

Part 5

Employment income: deductions allowed from earnings

Chapter 1

Deductions allowed from earnings: general rules

Introduction

      327        Deductions from earnings: general

 
 

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General rules

      328        The income from which deductions may be made

      329        Deductions from earnings not to exceed earnings

      330        Prevention of double deductions

      331        Order for making deductions

      332        Meaning of “the deductibility provisions”

Chapter 2

Deductions for employee’s expenses

Introduction

      333        Scope of this Chapter: expenses paid by the employee

      334        Effect of reimbursement etc.

      335        Application of deductions provisions: “earnings charged on receipt” and

“earnings charged on remittance”

General rule for deduction of employee’s expenses

      336        Deductions for expenses: the general rule

Travel expenses

      337        Travel in performance of duties

      338        Travel for necessary attendance

      339        Meaning of “workplace” and “permanent workplace”

      340        Travel between group employments

      341        Travel at start or finish of overseas employment

      342        Travel between employments where duties performed abroad

Fees and subscriptions

      343        Deduction for professional membership fees

      344        Deduction for annual subscriptions

      345        Decisions of the Inland Revenue under section 344

Employee liabilities and indemnity insurance

      346        Deduction for employee liabilities

      347        Payments made after leaving the employment

      348        Liabilities related to the employment

      349        Meaning of “qualifying insurance contract”

      350        Connected contracts

Expenses of ministers of religion

      351        Expenses of ministers of religion

Agency fees paid by entertainers

      352        Limited deduction for agency fees paid by entertainers

 
 

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Special rules for earnings with a foreign element

      353        Deductions from earnings charged on remittance

      354        Disallowance of expenses relating to earnings taxed on different basis or

untaxed

      355        Deductions for corresponding payments by non-domiciled employees with

foreign employers

Disallowance of business entertainment and gifts expenses

      356        Disallowance of business entertainment and gifts expenses

      357        Business entertainment and gifts: exception where employer’s expenses

disallowed

      358        Business entertainment and gifts: other exceptions

Other rules preventing deductions of particular kinds

      359        Disallowance of travel expenses: mileage allowances and reliefs

      360        Disallowance of certain accommodation expenses of MPs and other

representatives

Chapter 3

Deductions from benefits code earnings

Introduction

      361        Scope of this Chapter: cost of benefits deductible as if paid by employee

Deductions where amounts treated as earnings under the benefits code

      362        Deductions where non-cash voucher provided

      363        Deductions where credit-token provided

      364        Deductions where living accommodation provided

      365        Deductions where employment-related benefit provided

Chapter 4

Fixed allowances for employee’s expenses

Introduction

      366        Scope of this Chapter: amounts fixed by Treasury

Fixed sum deductions

      367        Fixed sum deductions for repairing and maintaining work equipment

      368        Fixed sum deductions from earnings payable out of public revenue

 
 

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Chapter 5

Deductions for earnings representing benefits or reimbursed expenses

Introduction

      369        Scope of this Chapter: earnings representing benefits or reimbursed expenses

Travel costs and expenses where duties performed abroad

      370        Travel costs and expenses where duties performed abroad: employee’s travel

      371        Travel costs and expenses where duties performed abroad: visiting spouse’s

or child’s travel

      372        Where seafarers’ duties are performed

Travel costs and expenses of non-domiciled employees where duties performed in UK

      373        Non-domiciled employee’s travel costs and expenses where duties

performed in UK

      374        Non-domiciled employee’s spouse’s or child’s travel costs and expenses

where duties performed in UK

      375        Meaning of “qualifying arrival date”

Foreign accommodation and subsistence costs and expenses

      376        Foreign accommodation and subsistence costs and expenses (overseas

employments)

Personal security assets and services

      377        Costs and expenses in respect of personal security assets and services

Chapter 6

Deductions from seafarers’ earnings

      378        Deduction from seafarers’ earnings: eligibility

      379        Calculating the deduction

      380        Limit on deduction where UK duties etc. make amount unreasonable

      381        Taking account of other deductions

      382        Duties on board ship

      383        Place of performance of incidental duties

      384        Meaning of employment “as a seafarer”

      385        Meaning of “ship”

Part 6

Employment income: income which is not earnings or share-related

Chapter 1

Payments to non-approved pension schemes

      386        Charge on payments to non-approved retirement benefits schemes

 
 

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      387        Meaning of “non-approved retirement benefits scheme”

      388        Apportionment of payments in respect of more than one employee

      389        Exception: employments where earnings charged on remittance

      390        Exception: non-domiciled employees with foreign employers

      391        Exception: seafarers with overseas earnings

      392        Relief where no benefits are paid or payable

Chapter 2

Benefits from non-approved pension schemes

Benefits treated as employment income

      393        Application of this Chapter

      394        Charge on benefit to which this Chapter applies

      395        Application of sections 396 and 397: general rules

      396        Certain lump sums not taxed by virtue of section 394

      397        Certain lump sums: calculation of amount taxed by virtue of section 394

Valuation of benefits etc.

      398        Valuation of benefits

      399        Employment-related loans: interest treated as paid

Interpretation

      400        Interpretation

Chapter 3

Payments and benefits on termination of employment etc.

Preliminary

      401        Application of this Chapter

      402        Meaning of “benefit”

Payments and benefits treated as employment income

      403        Charge on payment or other benefit

      404        How the £30,000 threshold applies

Exceptions and reductions

      405        Exception for certain payments exempted when received as earnings

      406        Exception for death or disability payments and benefits

      407        Exception for payments and benefits under tax-exempt pension schemes

      408        Exception for contributions to tax-exempt pension schemes

      409        Exception for payments and benefits in respect of employee liabilities and

indemnity insurance

      410        Exception for payments and benefits in respect of employee liabilities and

indemnity insurance: individual deceased

      411        Exception for payments and benefits for forces

      412        Exception for payments and benefits provided by foreign governments etc.

 
 

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      413        Exception in certain cases of foreign service

      414        Reduction in other cases of foreign service

General and supplementary provisions

      415        Valuation of benefits

      416        Notional interest treated as paid if amount charged for beneficial loan

Part 7

Employment income: share-related income and exemptions

Chapter 1

Introduction

      417        Scope of Part 7

      418        Other provisions about share-related income and exemptions

      419        Duties to provide information

      420        Negative amounts treated as nil

      421        Application of Part 7 to office-holders

Chapter 2

Conditional interests in shares

Introduction

      422        Application of this Chapter

      423        Interests in shares acquired “as a director or employee”

      424        Meaning of interest being “only conditional”

      425        Cases where this Chapter does not apply

Tax exemption

      426        No charge in respect of acquisition of employee’s interest in certain

circumstances

Tax charge

      427        Charge on interest in shares ceasing to be only conditional or on disposal

      428        Amount of charge

Supplementary provisions

      429        Amount or value of consideration given for employee’s interest

      430        Amount or value of consideration given for right to acquire shares

      431        Application of this Chapter where employee dies

      432        Duty to notify provision of conditional interests in shares

      433        Duty to notify events resulting in charges under section 427

      434        Minor definitions

 
 

 
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Revised 12 February 2003