3681.These paragraphs ensure that the overall exemption limit in section 241 operates correctly in respect of a qualifying period of absence which straddles 6 April 2003.
3682.This paragraph ensures that amounts in respect of benefits provided or expenses incurred before 6 April 2003 in connection with an employee’s change of residence count towards the £8,000 limit on such amounts in tax years beginning on or after that date.
3683.This paragraph preserves the effectiveness of any direction that was made before 6 April 2003 as to what is the “relevant day”. That direction remains effective for determining what will be the “limitation day” for the purposes of this Act. The paragraph thereby also deals with the change in terminology between the source legislation and this Act.
3684.This paragraph preserves the recovery of tax and information powers of section 588(5) to (7) of ICTA, as the section applies before the date on which this Act comes into force, for cases where:
the employee’s or the employer’s liability to tax for a year has been determined in accordance with sections 588 and 589 as those sections apply before that date, and
the failure referred to in section 588(5)(a) and (b), as that section apply before that date, occurs on or after that date.
3685.The paragraph works by disregarding in such circumstances the amendment of section 588(6), and the repeal of sections 588(5)(a) and 589(3) and (4), in Schedules 6 (consequential amendments) and 8 (repeals and revocations) respectively.
3686.This paragraph ensures that awards made under ESC A57 are taken into account in calculating the “permitted maximum” under section 322(3), where a financial benefit award under section 321is made for the same suggestion.