|
| |
|
| |
(1) | This section applies if— |
| |
(a) | a company carrying on life assurance business (“the |
| |
employer”) incurs training course expenses, |
| |
(b) | they are incurred in relation to a person (“the employee”) |
| 5 |
who holds or has held an office or employment under the |
| |
| |
(c) | the relevant conditions are met. |
| |
(2) | The expenses are brought into account under section 76 as expenses |
| |
payable (so far as they otherwise would not be). |
| 10 |
| |
“retraining course expenses” means expenses incurred in the |
| |
payment or reimbursement of retraining course expenses |
| |
within the meaning given by section 311(2) of ITEPA 2003, |
| |
| 15 |
“the relevant conditions” means— |
| |
(a) | the conditions in subsections (3) and (4) of section 311 |
| |
of ITEPA 2003 (employment income exemptions: |
| |
| |
(b) | in the case of travel expenses, the conditions in |
| 20 |
subsection (5) of that section.” |
| |
35 | After section 76ZD insert— |
| |
“76ZE | Retraining courses: recovery of tax |
| |
(1) | This section applies if— |
| |
(a) | an employer’s liability to corporation tax for an accounting |
| 25 |
period is determined on the assumption that it is entitled by |
| |
virtue of section 76ZD to bring an amount into account in |
| |
determining the amount of a deduction to be made under |
| |
| |
(b) | without section 76ZD the employer would not have been so |
| 30 |
| |
| |
(a) | the condition in section 311(4)(a) of ITEPA 2003 is not met |
| |
because of the employee’s failure to begin the course within |
| |
the period of one year after ceasing to be employed, or |
| 35 |
(b) | the condition in section 311(4)(b) of ITEPA 2003 is not met |
| |
because of the employee’s continued employment or re- |
| |
| |
| an assessment of an amount or further amount of corporation tax |
| |
due as a result of the condition not being met may be made under |
| 40 |
paragraph 41 of Schedule 18 to FA 1998. |
| |
(3) | Such an assessment must be made before the end of the period of 6 |
| |
years immediately following the end of the accounting period in |
| |
which the failure to meet the condition occurred. |
| |
(4) | If subsection (2) applies, the employer must give an officer of |
| 45 |
Revenue and Customs a notice containing particulars of— |
| |
(a) | the employee’s failure to begin the course, |
| |
|
| |
|
| |
|
(b) | the employee’s continued employment, or |
| |
(c) | the employee’s re-employment, |
| |
| within 60 days of coming to know of it. |
| |
(5) | If an officer of Revenue and Customs has reason to believe that the |
| |
employer has failed to give such a notice, the officer may by notice |
| 5 |
require the employer to provide such information as the officer may |
| |
reasonably require for the purposes of this section about— |
| |
(a) | the failure to begin the course, |
| |
(b) | the continued employment, or |
| |
| 10 |
(6) | A notice under subsection (5) may specify a time (not less than 60 |
| |
days) within which the required information must be provided.” |
| |
36 | After section 76ZE insert— |
| |
| |
79ZF | Redundancy payments and approved contractual payments |
| 15 |
(1) | Sections 76ZG to 76ZI apply if— |
| |
(a) | a company to which section 76 applies (“the employer”) |
| |
makes a redundancy payment or an approved contractual |
| |
payment to another person (“the employee”), and |
| |
(b) | the payment is in respect of the employee’s employment |
| 20 |
wholly in the employer’s life assurance business or partly in |
| |
the employer’s life assurance business and partly in one or |
| |
| |
(2) | For the purposes of this section and sections 76ZG to 76ZH |
| |
“redundancy payment” means a redundancy payment payable |
| 25 |
| |
(a) | Part 11 of the Employment Rights Act 1996, or |
| |
(b) | Part 12 of the Employment Rights (Northern Ireland) Order |
| |
| |
(3) | For the purposes of this section and those sections— |
| 30 |
“contractual payment” means a payment which, under an |
| |
agreement, an employer is liable to make to an employee on |
| |
the termination of the employee’s contract of employment, |
| |
| |
a contractual payment is “approved” if, in respect of that |
| 35 |
agreement, an order is in force under— |
| |
(a) | section 157 of the Employment Rights Act 1996, or |
| |
(b) | Article 192 of the Employment Rights (Northern |
| |
| |
37 | After section 76ZF insert— |
| 40 |
“76ZG | Payments in respect of employment wholly in employer’s business |
| |
(1) | This section applies if the payment is in respect of the employee’s |
| |
employment wholly in the employer’s life assurance business. |
| |
|
| |
|
| |
|
(2) | The payment is treated as expenses payable which fall to be brought |
| |
into account at Step 1 in section 76(7), so far as it otherwise would not |
| |
| |
(3) | The amount brought into account by virtue of this section for an |
| |
approved contractual payment must not exceed the amount which |
| 5 |
would have been due to the employee if a redundancy payment had |
| |
| |
(4) | If the payment is referable to an accounting period beginning after |
| |
the business has permanently ceased to be carried on, it is treated as |
| |
referable to the last accounting period in which the business was |
| 10 |
| |
38 | After section 76ZG insert— |
| |
“76ZH | Payments in respect of employment in more than one capacity |
| |
(1) | This section applies if the payment is in respect of the employee’s |
| |
employment with the employer— |
| 15 |
(a) | partly in the employer’s life assurance business, and |
| |
(b) | partly in one or more other capacities. |
| |
(2) | The amount of the redundancy payment, or the amount which |
| |
would have been due if a redundancy payment had been payable, is |
| |
to be apportioned on a just and reasonable basis between— |
| 20 |
(a) | the employment in the life assurance business, and |
| |
(b) | the employment in the other capacities. |
| |
(3) | The part of the payment apportioned to the employment in the life |
| |
assurance business is treated as a payment in respect of the |
| |
employee’s employment wholly in the life assurance business for the |
| 25 |
purposes of section 76ZG.” |
| |
39 | After section 76ZH insert— |
| |
“76ZI | Additional payments |
| |
(1) | This section applies if the employer’s business, or part of it, ceases |
| |
(permanently) to be carried on and the employer makes a payment |
| 30 |
to the employee in addition to— |
| |
(a) | the redundancy payment, or |
| |
(b) | if an approved contractual payment is made, the amount that |
| |
would have been due if a redundancy payment had been |
| |
| 35 |
| |
(a) | the additional payment would not otherwise be regarded as |
| |
expenses payable for the purposes of section 76, but |
| |
(b) | that is only because the business, or the part of the business, |
| |
has ceased to be carried on, |
| 40 |
| the additional payment is regarded as expenses payable for the |
| |
| |
(3) | So far as the additional payment would, apart from this subsection, |
| |
be regarded as expenses payable for the purposes of Step 5 in |
| |
subsection (7) of section 76, it is not to be so regarded for the |
| 45 |
|
| |
|
| |
|
purposes of that subsection (or of subsection (2) above so far as |
| |
| |
(4) | The amount treated under this section as expenses payable for the |
| |
purposes of section 76 is limited to 3 times the amount of— |
| |
(a) | the redundancy payment, or |
| 5 |
(b) | if an approved contractual payment is made, the amount that |
| |
would have been due if a redundancy payment had been |
| |
| |
(5) | If the payment is referable to an accounting period beginning after |
| |
the business or the part of the business has ceased to be carried on, it |
| 10 |
is treated as referable to the last accounting period in which the |
| |
business, or the part concerned, was carried on.” |
| |
40 | After section 76ZI insert— |
| |
“76ZJ | Payments by the Government |
| |
(1) | This section applies if— |
| 15 |
(a) | a redundancy payment or an approved contractual payment |
| |
is payable by a company to which section 76 applies (“the |
| |
| |
(b) | a payment to which subsection (2) applies is made in respect |
| |
| 20 |
(2) | This subsection applies to— |
| |
(a) | payments made by the Secretary of State under section 167 of |
| |
the Employment Rights Act 1996, and |
| |
(b) | payments made by the Department for Employment and |
| |
Learning under Article 202 of the Employment Rights |
| 25 |
(Northern Ireland) Order 1996. |
| |
(3) | So far as the employer reimburses the Secretary of State or |
| |
Department for the payment, sections 76ZG to 76ZI apply as if the |
| |
| |
(a) | a redundancy payment, or |
| 30 |
(b) | an approved contractual payment, |
| |
| |
41 | After section 76ZJ insert— |
| |
“Contributions to local enterprise organisations or urban regeneration companies |
| |
76ZK | Contributions to local enterprise organisations or urban regeneration |
| 35 |
| |
(1) | This section applies if a company to which section 76 applies (“the |
| |
contributor”) incurs expenses in making a contribution (whether in |
| |
| |
(a) | to a local enterprise organisation, or |
| 40 |
(b) | to an urban regeneration company. |
| |
(2) | The expenses are treated for the purposes of section 76 as expenses |
| |
payable which fall to be brought into account at Step 1 in section |
| |
| |
|
| |
|
| |
|
(3) | But if, in connection with the making of the contribution, the |
| |
contributor or a connected person— |
| |
(a) | receives a disqualifying benefit of any kind, or |
| |
(b) | is entitled to receive such a benefit, |
| |
| the amount treated in accordance with subsection (2) is restricted to |
| 5 |
the amount of the expenses less the value of the benefit. |
| |
(4) | For this purpose it does not matter whether a person receives, or is |
| |
entitled to receive, the benefit— |
| |
(a) | from the local enterprise organisation or urban regeneration |
| |
| 10 |
| |
(5) | Subsection (6) applies if— |
| |
(a) | an amount has been brought into account in accordance with |
| |
| |
(b) | the contributor or a connected person receives a |
| 15 |
disqualifying benefit that is in any way attributable to the |
| |
| |
(6) | The contributor is to be treated as receiving, when the benefit is |
| |
| |
(a) | which is equal to the value of the benefit (so far as not |
| 20 |
brought into account in determining the amount of the |
| |
| |
(b) | to which the charge to corporation tax on income applies. |
| |
| |
“disqualifying benefit” means a benefit the expenses of |
| 25 |
obtaining which, if incurred by the contributor directly in a |
| |
transaction at arm’s length, would not be expenses payable |
| |
for the purposes of section 76, |
| |
“local enterprise organisation” has the meaning given by |
| |
| 30 |
“urban regeneration company” has the meaning given by |
| |
| |
(8) | Section 839 (“connected person”) applies for the purposes of |
| |
subsections (3) and (5).” |
| |
42 | After section 76ZK insert— |
| 35 |
| |
| |
(1) | This section applies if— |
| |
(a) | an amount is charged in respect of employees’ remuneration |
| |
in the accounts for a period of a company to which section 76 |
| 40 |
| |
(b) | the amount would apart from this section be brought into |
| |
account under section 76 as expenses payable, and |
| |
(c) | the remuneration is not paid before the end of the period of 9 |
| |
months immediately following the end of the period of |
| 45 |
| |
|
| |
|
| |
|
(2) | If the remuneration is paid after the end of that period of 9 months, |
| |
the amount is brought into account for the period of account in |
| |
| |
| |
(a) | subsection (2) is subject to section 86 of FA 1989 (spreading of |
| 5 |
relief for acquisition expenses), and |
| |
(b) | in interpreting that section the remuneration is treated as |
| |
expenses payable which fall to be included at Step 1 in section |
| |
76(7) for the period of account in which the remuneration is |
| |
| 10 |
(4) | The amount is not brought into account under section 76 as expenses |
| |
payable if it is not paid.” |
| |
43 | After section 76ZL insert— |
| |
“76ZM | Unpaid remuneration: supplementary |
| |
(1) | For the purposes of section 76ZL an amount charged in the accounts |
| 15 |
in respect of employees’ remuneration includes an amount for which |
| |
provision is made in the accounts with a view to its becoming |
| |
| |
(2) | For the purposes of section 76ZL it does not matter whether an |
| |
| 20 |
(a) | particular employments, or |
| |
(b) | employments generally. |
| |
(3) | If the profits of the company are calculated before the end of the 9 |
| |
month period mentioned in section 76ZL(1)(c)— |
| |
(a) | it must be assumed, in making the calculation, that any |
| 25 |
remuneration which is unpaid when the calculation is made |
| |
will not be paid before the end of that period, but |
| |
(b) | if the remuneration is subsequently paid before the end of |
| |
that period, nothing in this subsection prevents the |
| |
calculation being revised and any tax return being amended |
| 30 |
| |
(4) | For the purposes of this section and section 76ZL remuneration is |
| |
| |
(a) | is treated as received by an employee for the purposes of |
| |
ITEPA 2003 by section 18 or 19 of that Act (receipt of money |
| 35 |
and non-money earnings), or |
| |
(b) | would be so treated if it were not exempt income. |
| |
(5) | In this section and section 76ZL— |
| |
“employee” includes an office-holder and “employment” |
| |
therefore includes an office, and |
| 40 |
“remuneration” means an amount which is or is treated as |
| |
earnings for the purposes of Parts 2 to 7 of ITEPA 2003.” |
| |
44 | After section 76ZM insert— |
| |
|
| |
|