Finance (No. 2) Act 2017

1 Taxable benefits: time limit for making good

(1) Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.

(2) In section 87 (cash equivalent of benefit of non-cash voucher)—

(a) in subsection (2)(b), for “to the person incurring it” substitute “, to the person incurring it, on or before 6 July following the relevant tax year”, and

(b) after subsection (2) insert—

“(2A) If the voucher is a non-cash voucher other than a cheque voucher, the relevant tax year is—

(a) the tax year in which the cost of provision is incurred, or

(b) if later, the tax year in which the employee receives the voucher.

(2B) If the voucher is a cheque voucher, the relevant tax year is the tax year in which the voucher is handed over in exchange for money, goods or services.”

(3) In section 88(3) (time at which cheque voucher treated as handed over), at the beginning insert “For the purposes of subsection (2) and sections 87(2B) and 87A(6),”.

(4) In section 94(2) (cash equivalent of benefit of credit-token), in paragraph (b), for the words from “employee” to the end substitute “employee—

(i) to the person incurring it, and

(ii) on or before 6 July following the tax year which contains the occasion in question.”

(5) In section 105(2) (cash equivalent of benefit of living accommodation costing £75,000 or less), in paragraph (b), after “made good” insert “, on or before 6 July following the tax year which contains the taxable period,”.

(6) In section 106(3) (cash equivalent of benefit of living accommodation costing over £75,000), in paragraph (a), for the words from “paid” to “exceeds” substitute “paid—

(i) by the employee,

(ii) in respect of the accommodation,

(iii) to the person providing it, and

(iv) on or before 6 July following the tax year which contains the taxable period,

exceeds”.

(7) In section 144 (deduction for payments for private use of car)—

(a) in subsection (1)(b), for “in” substitute “on or before 6 July following”,

(b) in subsection (2), after “paid” insert “as mentioned in subsection (1)(b)”, and

(c) in subsection (3), after “paid” insert “as mentioned in subsection (1)(b)”.

(8) In section 151(2) (when cash equivalent of benefit of car fuel is nil)—

(a) in the words before paragraph (a) omit “in the tax year in question”,

(b) in paragraph (a), at the beginning insert “in the tax year in question,”, and

(c) in paragraph (b), at the end insert “on or before 6 July following that tax year”.

(9) In section 152(2) (car fuel: proportionate reduction of cash equivalent)—

(a) in the words before paragraph (a) omit “for any part of the tax year in question”,

(b) in paragraph (a), at the beginning insert “for any part of the tax year in question,”,

(c) in paragraph (b), at the beginning insert “for any part of the tax year in question,”, and

(d) in paragraph (c)—

(i) after “employee”, in the first place it occurs, insert “—

(i) for any part of the tax year in question,”, and

(ii) for “and the employee does make good that expense” substitute “, and

(ii) the employee does make good that expense on or before 6 July following that tax year”.

(10) In section 158 (reduction for payments for private use of van)—

(a) in subsection (1)(b), for “in” substitute “on or before 6 July following”,

(b) in subsection (2), after “paid” insert “as mentioned in subsection (1)(b)”, and

(c) in subsection (3), after “paid” insert “as mentioned in subsection (1)(b)”.

(11) In section 162(2) (when cash equivalent of benefit of van fuel is nil)—

(a) in the words before paragraph (a) omit “in the tax year in question”,

(b) in paragraph (a), at the beginning insert “in the tax year in question,”, and

(c) in paragraph (b), at the end insert “on or before 6 July following that tax year”.

(12) In section 163(3) (van fuel: proportionate reduction of cash equivalent)—

(a) in the words before paragraph (a) omit “for any part of the tax year in question”,

(b) in paragraph (a), at the beginning insert “for any part of the tax year in question,”,

(c) in paragraph (b), at the beginning insert “for any part of the tax year in question,”, and

(d) in paragraph (c)—

(i) after “employee”, in the first place it occurs, insert “—

(i) for any part of the tax year in question,”, and

(ii) for “and the employee does make good that expense” substitute “, and

(ii) the employee does make good that expense on or before 6 July following that tax year”.

(13) In section 203(2) (cash equivalent of benefit treated as earnings), for “to the persons providing the benefit” substitute “, to the persons providing the benefit, on or before 6 July following the tax year in which it is provided”.

(14) The amendments made by this section have effect for the purpose of calculating income tax charged for the tax year 2017-18 or any subsequent tax year.