Search Legislation

Advanced Search

Income Tax (Earnings and Pensions) Act 2003

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. Part 1 Overview

    1. 1.Overview of contents of this Act

    2. 2.Abbreviations and general index in Schedule 1

  3. Part 2 Employment income: charge to tax

    1. Chapter 1 Introduction

      1. 3.Structure of employment income Parts

      2. 4.“Employment” for the purposes of the employment income Parts

      3. 5.Application to offices and office-holders

    2. Chapter 2 Tax on employment income

      1. 6.Nature of charge to tax on employment income

      2. 7.Meaning of “employment income”, “general earnings” and “specific employment income”

      3. 8.Meaning of “exempt income”

    3. Chapter 3 Operation of tax charge

      1. 9.Amount of employment income charged to tax

      2. 10.Meaning of “taxable earnings” and “taxable specific income”

      3. 11.Calculation of “net taxable earnings”

      4. 12.Calculation of “net taxable specific income”

      5. 13.Person liable for tax

    4. Chapter 4 Taxable earnings: rules applying to employee resident, ordinarily resident and domiciled in UK

      1. Taxable earnings

        1. 14.Taxable earnings under this Chapter: introduction

      2. Employees resident, ordinarily resident and domiciled in UK

        1. 15.Earnings for year when employee resident, ordinarily resident and domiciled in UK

      3. Year for which general earnings are earned

        1. 16.Meaning of earnings “for” a tax year

        2. 17.Treatment of earnings for year in which employment not held

      4. When general earnings are received

        1. 18.Receipt of money earnings

        2. 19.Receipt of non-money earnings

    5. Chapter 5 Taxable earnings: rules applying to employee resident, ordinarily resident or domiciled outside UK

      1. Taxable earnings

        1. 20.Taxable earnings under this Chapter: introduction

      2. Employees resident and ordinarily resident in UK

        1. 21.Earnings for year when employee resident and ordinarily resident, but not domiciled, in UK, except chargeable overseas earnings

        2. 22.Chargeable overseas earnings for year when employee resident and ordinarily resident, but not domiciled, in UK

        3. 23.Calculation of “chargeable overseas earnings”

        4. 24.Limit on chargeable overseas earnings where duties of associated employment performed in UK

      3. Employees resident but not ordinarily resident in UK

        1. 25.UK-based earnings for year when employee resident, but not ordinarily resident, in UK

        2. 26.Foreign earnings for year when employee resident, but not ordinarily resident, in UK

      4. Employees not resident in UK

        1. 27.UK-based earnings for year when employee not resident in UK

      5. Special class of earnings for purposes of sections 25 to 27

        1. 28.Meaning of “general earnings from overseas Crown employment subject to UK tax”

      6. Year for which general earnings are earned

        1. 29.Meaning of earnings “for” a tax year

        2. 30.Treatment of earnings for year in which employment not held

      7. When general earnings are received or remitted

        1. 31.Receipt of money earnings

        2. 32.Receipt of non-money earnings

        3. 33.Earnings remitted to UK

        4. 34.Earnings remitted to UK: further provisions about UK-linked debts

      8. Relief for delayed remittances

        1. 35.Relief for delayed remittances

        2. 36.Election in respect of delayed remittances

        3. 37.Claims for relief on delayed remittances

      9. Place of performance of duties of employment

        1. 38.Earnings for period of absence from employment

        2. 39.Duties in UK merely incidental to duties outside UK

        3. 40.Duties on board vessel or aircraft

        4. 41.Employment in UK sector of continental shelf

    6. Chapter 6 Disputes as to domicile or ordinary residence

      1. 42.Board to determine dispute as to domicile or ordinary residence

      2. 43.Appeal against Board’s decision on domicile or ordinary residence

    7. Chapter 7 Application of provisions to agency workers

      1. Agency workers

        1. 44.Treatment of workers supplied by agencies

        2. 45.Arrangements with agencies

        3. 46.Cases involving unincorporated bodies etc.

      2. Supplementary

        1. 47.Interpretation of this Chapter

    8. Chapter 8 Application of provisions to workers under arrangements made by intermediaries

      1. Application of this Chapter

        1. 48.Scope of this Chapter

        2. 49.Engagements to which this Chapter applies

        3. 50.Worker treated as receiving earnings from employment

        4. 51.Conditions of liability where intermediary is a company

        5. 52.Conditions of liability where intermediary is a partnership

        6. 53.Conditions of liability where intermediary is an individual

      2. The deemed employment payment

        1. 54.Calculation of deemed employment payment

        2. 55.Application of rules relating to earnings from employment

        3. 56.Application of Income Tax Acts in relation to deemed employment

      3. Supplementary provisions

        1. 57.Earlier date of deemed employment payment in certain cases

        2. 58.Relief in case of distributions by intermediary

        3. 59.Provisions applicable to multiple intermediaries

        4. 60.Meaning of “associate”

        5. 61.Interpretation

  4. Part 3 Employment income: earnings and benefits etc. treated as earnings

    1. Chapter 1 Earnings

      1. 62.Earnings

    2. Chapter 2 Taxable benefits: the benefits code

      1. The benefits code

        1. 63.The benefits code

        2. 64.Relationship between earnings and benefits code

        3. 65.Dispensations relating to benefits within provisions not applicable to lower-paid employment

      2. General definitions for benefits code

        1. 66.Meaning of “employment” and related expressions

        2. 67.Meaning of “director” and “full-time working director”

        3. 68.Meaning of “material interest” in a company

        4. 69.Extended meaning of “control”

    3. Chapter 3 Taxable benefits: expenses payments

      1. 70.Sums in respect of expenses

      2. 71.Meaning of paid or put at disposal by reason of the employment

      3. 72.Sums in respect of expenses treated as earnings

    4. Chapter 4 Taxable benefits: vouchers and credit-tokens

      1. Cash vouchers: introduction

        1. 73.Cash vouchers to which this Chapter applies

        2. 74.Provision for, or receipt by, member of employee’s family

      2. Meaning of “cash voucher”

        1. 75.Meaning of “cash voucher”

        2. 76.Sickness benefits-related voucher

        3. 77.Apportionment of cost of provision of voucher

      3. Cash vouchers: exceptions

        1. 78.Voucher made available to public generally

        2. 79.Voucher issued under approved scheme

        3. 80.Vouchers where payment of sums exempt from tax

      4. Benefit of cash voucher treated as earnings

        1. 81.Benefit of cash voucher treated as earnings

      5. Non-cash vouchers: introduction

        1. 82.Non-cash vouchers to which this Chapter applies

        2. 83.Provision for, or receipt by, member of employee’s family

      6. Meaning of “non-cash voucher”

        1. 84.Meaning of “non-cash voucher”

      7. Non-cash voucher: exceptions

        1. 85.Non-cash voucher made available to public generally

        2. 86.Transport vouchers under pre-26th March 1982 arrangements

      8. Benefit of non-cash voucher treated as earnings

        1. 87.Benefit of non-cash voucher treated as earnings

        2. 88.Year in which earnings treated as received

        3. 89.Reduction for meal vouchers

      9. Credit-tokens: introduction

        1. 90.Credit-tokens to which this Chapter applies

        2. 91.Provision for, or use by, member of employee’s family

      10. Meaning of “credit-token”

        1. 92.Meaning of “credit-token”

      11. Credit-tokens: exception

        1. 93.Credit-token made available to public generally

      12. Benefit of credit-token treated as earnings

        1. 94.Benefit of credit-token treated as earnings

      13. General supplementary provisions

        1. 95.Disregard for money, goods or services obtained

        2. 96.Dispensations relating to vouchers or credit-tokens

    5. Chapter 5 Taxable benefits: living accommodation

      1. Living accommodation

        1. 97.Living accommodation to which this Chapter applies

      2. Exceptions

        1. 98.Accommodation provided by local authority

        2. 99.Accommodation provided for performance of duties

        3. 100.Accommodation provided as result of security threat

        4. 101.Chevening House

      3. Benefit of living accommodation treated as earnings

        1. 102.Benefit of living accommodation treated as earnings

      4. Calculation of cash equivalent

        1. 103.Method of calculating cash equivalent

        2. 104.General rule for calculating cost of providing accommodation

      5. Accommodation costing £75,000 or less

        1. 105.Cash equivalent: cost of accommodation not over £75,000

      6. Accommodation costing more than £75,000

        1. 106.Cash equivalent: cost of accommodation over £75,000

        2. 107.Special rule for calculating cost of providing accommodation

      7. Apportionment of cash equivalent

        1. 108.Cash equivalent: accommodation provided for more than one employee

      8. Other tax implications

        1. 109.Priority of this Chapter over Chapter 1 of this Part

      9. Supplementary

        1. 110.Meaning of “annual value”

        2. 111.Disputes as to annual value

        3. 112.Meaning of “person involved in providing the accommodation”

        4. 113.Meaning of “the property”

    6. Chapter 6 Taxable benefits: cars, vans and related benefits

      1. General

        1. 114.Cars, vans and related benefits

        2. 115.Meaning of “car” and “van”

        3. 116.Meaning of when car or van is available to employee

        4. 117.Meaning of car or van made available by reason of employment

        5. 118.Availability for private use

        6. 119.Where alternative to benefit of car offered

      2. Cars: benefit treated as earnings

        1. 120.Benefit of car treated as earnings

        2. 121.Method of calculating the cash equivalent of the benefit of a car

      3. Cars: the price of a car

        1. 122.The price of the car

        2. 123.The list price of a car

        3. 124.The notional price of a car with no list price

      4. Cars: treatment of accessories

        1. 125.Meaning of “accessory” and related terms

        2. 126.Amounts taken into account in respect of accessories

        3. 127.The list price of an accessory

        4. 128.Accessory: published price of the car manufacturer etc.

        5. 129.Accessory: published price of the accessory manufacturer etc.

        6. 130.The notional price of an accessory

        7. 131.Replacement accessories

      5. Cars: capital contributions by employee

        1. 132.Capital contributions by employee

      6. Cars: the appropriate percentage

        1. 133.How to determine the “appropriate percentage”

        2. 134.Meaning of car with or without a CO2 emissions figure

      7. Cars: appropriate percentage: first registered on or after 1st January 1998

        1. 135.Car with a CO2 emissions figure: pre-October 1999 registration

        2. 136.Car with a CO2 emissions figure: post-September 1999 registration

        3. 137.Car with a CO2 emissions figure: bi-fuel cars

        4. 138.Car with a CO2 emissions figure: automatic car for a disabled employee

        5. 139.Car with a CO2 emissions figure: the appropriate percentage

        6. 140.Car without a CO2 emissions figure: the appropriate percentage

        7. 141.Diesel cars: the appropriate percentage

      8. Cars: appropriate percentage: first registered before 1st January 1998

        1. 142.Car first registered before 1st January 1998: the appropriate percentage

      9. Cars: unavailability or payments for private use

        1. 143.Deduction for periods when car unavailable

        2. 144.Deduction for payments for private use

        3. 145.Modification of provisions where car temporarily replaced

      10. Cars: special cases

        1. 146.Cars that run on road fuel gas

        2. 147.Classic cars: 15 years of age or more

      11. Cars: reduction where shared car

        1. 148.Reduction of cash equivalent where car is shared

      12. Car fuel: benefit treated as earnings

        1. 149.Benefit of car fuel treated as earnings

        2. 150.Car fuel: calculating the cash equivalent

        3. 151.Car fuel: nil cash equivalent

        4. 152.Car fuel: proportionate reduction of cash equivalent

        5. 153.Car fuel: reduction of cash equivalent

      13. Vans: benefit treated as earnings

        1. 154.Benefit of van treated as earnings

        2. 155.Method of calculating the cash equivalent of the benefit of a van

        3. 156.Meaning of “shared van”

      14. Vans: value of exclusive availability

        1. 157.Value of exclusive availability

        2. 158.Deduction for periods of unavailability or shared use

        3. 159.Deduction for payments for private use

      15. Vans: value of shared availability

        1. 160.Value of shared availability

        2. 161.Value of shared availability: normal calculation

        3. 162.Shared van: meaning of “participating employee”

        4. 163.Shared van: basic value

        5. 164.Value of shared availability: alternative calculation

        6. 165.Deduction for payments for private use

      16. Vans: limit of cash equivalent

        1. 166.Vans: limit of cash equivalent

      17. Cars and vans: exceptions

        1. 167.Pooled cars

        2. 168.Pooled vans

        3. 169.Car available to more than one member of family or household employed by same employer

      18. Orders

        1. 170.Orders etc. relating to this Chapter

      19. Supplementary

        1. 171.Minor definitions: general

        2. 172.Minor definitions: equipment to enable a disabled person to use a car

    7. Chapter 7 Taxable benefits: loans

      1. Introduction

        1. 173.Loans to which this Chapter applies

        2. 174.Employment-related loans

      2. Benefit of taxable cheap loan treated as earnings

        1. 175.Benefit of taxable cheap loan treated as earnings

        2. 176.Exception for loans on ordinary commercial terms

        3. 177.Exceptions for loans at fixed rate of interest

        4. 178.Exception for loans where interest qualifies for tax relief

        5. 179.Exception for certain advances for necessary expenses

        6. 180.Threshold for benefit of loan to be treated as earnings

      3. Calculation of amount of interest at official rate

        1. 181.The official rate of interest

        2. 182.Normal method of calculation: averaging

        3. 183.Alternative method of calculation

      4. Supplementary provisions relating to taxable cheap loans

        1. 184.Interest treated as paid

        2. 185.Apportionment of cash equivalent in case of joint loan etc.

        3. 186.Replacement loans

        4. 187.Aggregation of loans by close company to director

      5. Loan released or written off

        1. 188.Loan released or written off: amount treated as earnings

        2. 189.Exception where double charge

      6. General supplementary provisions

        1. 190.Exclusion of charge after death of employee

        2. 191.Claim for relief to take account of event after assessment

    8. Chapter 8 Taxable benefits: notional loans in respect of acquisitions of shares

      1. Introduction

        1. 192.Application of this Chapter

      2. Acquisition of shares for less than market value

        1. 193.Notional loan where acquisition for less than market value

        2. 194.The amount of the notional loan

        3. 195.Discharge of notional loan: amount treated as earnings

      3. Supplementary provisions

        1. 196.Effects on other income tax charges

        2. 197.Minor definitions

    9. Chapter 9 Taxable benefits: disposals of shares for more than market value

      1. 198.Shares to which this Chapter applies

      2. 199.Disposal for more than market value: amount treated as earnings

      3. 200.Minor definitions

    10. Chapter 10 Taxable benefits: residual liability to charge

      1. Introduction

        1. 201.Employment-related benefits

        2. 202.Excluded benefits

      2. Cash equivalent of benefit treated as earnings

        1. 203.Cash equivalent of benefit treated as earnings

      3. Determination of the cost of the benefit

        1. 204.Cost of the benefit: basic rule

        2. 205.Cost of the benefit: asset made available without transfer

        3. 206.Cost of the benefit: transfer of used or depreciated asset

      4. Supplementary provisions

        1. 207.Meaning of “annual rental value”

        2. 208.Meaning of “market value”

        3. 209.Meaning of “persons providing benefit”

        4. 210.Power to exempt minor benefits

      5. Special rules for scholarships

        1. 211.Special rules for scholarships: introduction

        2. 212.Scholarships provided under arrangements entered into by employer or connected person

        3. 213.Exception for certain scholarships under trusts or schemes

        4. 214.Scholarships: cost of the benefit

        5. 215.Limitation of exemption for scholarship income in section 331 of ICTA

    11. Chapter 11 Taxable benefits: exclusion of lower-paid employments from parts of benefits code

      1. Introduction

        1. 216.Provisions not applicable to lower-paid employments

      2. What is lower-paid employment

        1. 217.Meaning of “lower-paid employment”

        2. 218.Calculation of earnings rate for a tax year

        3. 219.Extra amounts to be added in connection with a car

      3. Treatment of related employments

        1. 220.Related employments

    12. Chapter 12 Payments treated as earnings

      1. 221.Payments where employee absent because of sickness or disability

      2. 222.Payments by employer on account of tax where deduction not possible

      3. 223.Payments on account of director’s tax other than by the director

      4. 224.Payments to non-approved personal pension arrangements

      5. 225.Payments for restrictive undertakings

      6. 226.Valuable consideration given for restrictive undertakings

  5. Part 4 Employment income: exemptions

    1. Chapter 1 Exemptions: general

      1. 227.Scope of Part 4

      2. 228.Effect of exemptions on liability under provisions outside Part 2

    2. Chapter 2 Exemptions: mileage allowances and passenger payments

      1. Mileage allowances

        1. 229.Mileage allowance payments

        2. 230.The approved amount for mileage allowance payments

        3. 231.Mileage allowance relief

        4. 232.Giving effect to mileage allowance relief

      2. Passenger payments

        1. 233.Passenger payments

        2. 234.The approved amount for passenger payments

      3. Supplementary

        1. 235.Vehicles to which this Chapter applies

        2. 236.Interpretation of this Chapter

    3. Chapter 3 Exemptions: other transport, travel and subsistence

      1. 237.Parking provision and expenses

      2. 238.Modest private use of heavy goods vehicles

      3. 239.Payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles

      4. 240.Incidental overnight expenses and benefits

      5. 241.Incidental overnight expenses and benefits: overall exemption limit

      6. 242.Works transport services

      7. 243.Support for public bus services

      8. 244.Cycles and cyclist’s safety equipment

      9. 245.Travelling and subsistence during public transport strikes

      10. 246.Transport between work and home for disabled employees: general

      11. 247.Provision of cars for disabled employees

      12. 248.Transport home: late night working and failure of car-sharing arrangements

      13. 249.Interpretation of this Chapter

    4. Chapter 4 Exemptions: education and training

      1. Work-related training

        1. 250.Exemption of work-related training provision

        2. 251.Meaning of “work-related training”

        3. 252.Exception for non-deductible travel expenses

        4. 253.Exception where provision for excluded purposes

        5. 254.Exception where unrelated assets are provided

      2. Individual learning account training

        1. 255.Exemption for contributions to individual learning account training

        2. 256.Meaning of “individual learning account training”

        3. 257.Exception for non-deductible travel expenses

        4. 258.Exception where provision for excluded purposes

        5. 259.Exception where unrelated assets are provided

        6. 260.Exception where training not generally available to staff

    5. Chapter 5 Exemptions: recreational benefits

      1. Recreational facilities

        1. 261.Exemption of recreational benefits

        2. 262.Benefits not exempted by section 261

        3. 263.Power to alter benefits to which section 261 applies

      2. Annual parties and functions

        1. 264.Annual parties and functions

      3. Entertainment

        1. 265.Third party entertainment

    6. Chapter 6 Exemptions: non-cash vouchers and credit-tokens

      1. General exemptions: use for exempt benefits

        1. 266.Exemption of non-cash vouchers for exempt benefits

        2. 267.Exemption of credit-tokens used for exempt benefits

      2. Exemptions for particular non-cash vouchers and credit-tokens

        1. 268.Exemption of vouchers and tokens for incidental overnight expenses

        2. 269.Exemption where benefits or money obtained in connection with taxable car or van or exempt heavy goods vehicle

        3. 270.Exemption for small gifts of vouchers and tokens from third parties

    7. Chapter 7 Exemptions: removal benefits and expenses

      1. Exemption of removal benefits and expenses: general

        1. 271.Limited exemption of removal benefits and expenses: general

        2. 272.Removal benefits and expenses to which section 271 applies

        3. 273.Conditions applicable to change of residence

        4. 274.Meaning of “the limitation day”

        5. 275.Meaning of “the employment change”

        6. 276.Meaning of “residence”, “former residence” and “new residence” etc.

      2. Benefits and expenses within this Chapter

        1. 277.Acquisition benefits and expenses

        2. 278.Abortive acquisition benefits and expenses

        3. 279.Disposal benefits and expenses

        4. 280.Transporting belongings

        5. 281.Travelling and subsistence

        6. 282.Exclusion from section 281 of benefits and expenses where deduction allowed

        7. 283.Exclusion from section 281 of taxable car and van facilities

        8. 284.Bridging loan expenses

        9. 285.Replacement of domestic goods

        10. 286.Power to amend sections 279 to 285

      3. Limit on exemption

        1. 287.Limit on exemption

      4. Special exemption and relief for bridging loans

        1. 288.Limited exemption of certain bridging loans connected with employment moves

        2. 289.Relief for certain bridging loans not qualifying for exemption under section 288

    8. Chapter 8 Exemptions: special kinds of employees

      1. Ministers of religion

        1. 290.Accommodation benefits of ministers of religion

      2. MPs, government ministers etc.

        1. 291.Termination payments to MPs and others ceasing to hold office

        2. 292.Overnight expenses allowances of MPs

        3. 293.Overnight expenses of other elected representatives

        4. 294.EU travel expenses of MPs and other representatives

        5. 295.Transport and subsistence for Government ministers etc.

      3. Armed forces

        1. 296.Armed forces' leave travel facilities

        2. 297.Armed forces' food, drink and mess allowances

        3. 298.Reserve and auxiliary forces' training allowances

      4. Crown employees

        1. 299.Crown employees' foreign service allowances

      5. Consuls, foreign agents etc.

        1. 300.Consuls

        2. 301.Official agents

        3. 302.Consular employees

      6. Visiting forces and staff of designated allied headquarters

        1. 303.Visiting forces and staff of designated allied headquarters

      7. Detached national experts

        1. 304.Experts seconded to European Commission

      8. Offshore oil and gas workers

        1. 305.Offshore oil and gas workers: mainland transfers

      9. Miners etc.

        1. 306.Miners etc: coal and allowances in lieu of coal

    9. Chapter 9 Exemptions: pension provision

      1. 307.Death or retirement benefit provision

      2. 308.Exemption of contributions to approved personal pension arrangements

    10. Chapter 10 Exemptions: termination of employment

      1. Redundancy payments

        1. 309.Limited exemptions for statutory redundancy payments

      2. Outplacement benefits

        1. 310.Counselling and other outplacement services

        2. 311.Retraining courses

        3. 312.Recovery of tax

    11. Chapter 11 Miscellaneous exemptions

      1. Living accommodation

        1. 313.Repairs and alterations to living accommodation

        2. 314.Council tax etc. paid for certain living accommodation

        3. 315.Limited exemption for expenses connected with certain living accommodation

      2. Work accommodation, supplies etc.

        1. 316.Accommodation, supplies and services used in employment duties

      3. Workplace meals

        1. 317.Subsidised meals

      4. Childcare

        1. 318.Care for children

      5. Telephones and computer equipment

        1. 319.Mobile telephones

        2. 320.Limited exemption for computer equipment

      6. Awards and gifts

        1. 321.Suggestion awards

        2. 322.Suggestion awards: “the permitted maximum”

        3. 323.Long service awards

        4. 324.Small gifts from third parties

      7. Overseas medical treatment

        1. 325.Overseas medical treatment

      8. Expenses incidental to sale etc. of asset

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

  6. Part 5 Employment income: deductions allowed from earnings

    1. Chapter 1 Deductions allowed from earnings: general rules

      1. Introduction

        1. 327.Deductions from earnings: general

      2. General rules

        1. 328.The income from which deductions may be made

        2. 329.Deductions from earnings not to exceed earnings

        3. 330.Prevention of double deductions

        4. 331.Order for making deductions

        5. 332.Meaning of “the deductibility provisions”

    2. Chapter 2 Deductions for employee’s expenses

      1. Introduction

        1. 333.Scope of this Chapter: expenses paid by the employee

        2. 334.Effect of reimbursement etc.

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

      2. General rule for deduction of employee’s expenses

        1. 336.Deductions for expenses: the general rule

      3. Travel expenses

        1. 337.Travel in performance of duties

        2. 338.Travel for necessary attendance

        3. 339.Meaning of “workplace” and “permanent workplace”

        4. 340.Travel between group employments

        5. 341.Travel at start or finish of overseas employment

        6. 342.Travel between employments where duties performed abroad

      4. Fees and subscriptions

        1. 343.Deduction for professional membership fees

        2. 344.Deduction for annual subscriptions

        3. 345.Decisions of the Inland Revenue under section 344

      5. Employee liabilities and indemnity insurance

        1. 346.Deduction for employee liabilities

        2. 347.Payments made after leaving the employment

        3. 348.Liabilities related to the employment

        4. 349.Meaning of “qualifying insurance contract”

        5. 350.Connected contracts

      6. Expenses of ministers of religion

        1. 351.Expenses of ministers of religion

      7. Agency fees paid by entertainers

        1. 352.Limited deduction for agency fees paid by entertainers

      8. Special rules for earnings with a foreign element

        1. 353.Deductions from earnings charged on remittance

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

        3. 355.Deductions for corresponding payments by non-domiciled employees with foreign employers

      9. Disallowance of business entertainment and gifts expenses

        1. 356.Disallowance of business entertainment and gifts expenses

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

        3. 358.Business entertainment and gifts: other exceptions

      10. Other rules preventing deductions of particular kinds

        1. 359.Disallowance of travel expenses: mileage allowances and reliefs

        2. 360.Disallowance of certain accommodation expenses of MPs and other representatives

    3. Chapter 3 Deductions from benefits code earnings

      1. Introduction

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

      2. Deductions where amounts treated as earnings under the benefits code

        1. 362.Deductions where non-cash voucher provided

        2. 363.Deductions where credit-token provided

        3. 364.Deductions where living accommodation provided

        4. 365.Deductions where employment-related benefit provided

    4. Chapter 4 Fixed allowances for employee’s expenses

      1. Introduction

        1. 366.Scope of this Chapter: amounts fixed by Treasury

      2. Fixed sum deductions

        1. 367.Fixed sum deductions for repairing and maintaining work equipment

        2. 368.Fixed sum deductions from earnings payable out of public revenue

    5. Chapter 5 Deductions for earnings representing benefits or reimbursed expenses

      1. Introduction

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

      2. Travel costs and expenses where duties performed abroad

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

        2. 371.Travel costs and expenses where duties performed abroad: visiting spouse’s or child’s travel

        3. 372.Where seafarers' duties are performed

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

        1. 373.Non-domiciled employee’s travel costs and expenses where duties performed in UK

        2. 374.Non-domiciled employee’s spouse’s or child’s travel costs and expenses where duties performed in UK

        3. 375.Meaning of “qualifying arrival date”

      4. Foreign accommodation and subsistence costs and expenses

        1. 376.Foreign accommodation and subsistence costs and expenses (overseas employments)

      5. Personal security assets and services

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

    6. Chapter 6 Deductions from seafarers' earnings

      1. 378.Deduction from seafarers' earnings: eligibility

      2. 379.Calculating the deduction

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

      4. 381.Taking account of other deductions

      5. 382.Duties on board ship

      6. 383.Place of performance of incidental duties

      7. 384.Meaning of employment “as a seafarer”

      8. 385.Meaning of “ship”

  7. Part 6 Employment income: income which is not earnings or share-related

    1. Chapter 1 Payments to non-approved pension schemes

      1. 386.Charge on payments to non-approved retirement benefits schemes

      2. 387.Meaning of “non-approved retirement benefits scheme”

      3. 388.Apportionment of payments in respect of more than one employee

      4. 389.Exception: employments where earnings charged on remittance

      5. 390.Exception: non-domiciled employees with foreign employers

      6. 391.Exception: seafarers with overseas earnings

      7. 392.Relief where no benefits are paid or payable

    2. Chapter 2 Benefits from non-approved pension schemes

      1. Benefits treated as employment income

        1. 393.Application of this Chapter

        2. 394.Charge on benefit to which this Chapter applies

        3. 395.Application of sections 396 and 397: general rules

        4. 396.Certain lump sums not taxed by virtue of section 394

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

      2. Valuation of benefits etc.

        1. 398.Valuation of benefits

        2. 399.Employment-related loans: interest treated as paid

      3. Interpretation

        1. 400.Interpretation

    3. Chapter 3 Payments and benefits on termination of employment etc.

      1. Preliminary

        1. 401.Application of this Chapter

        2. 402.Meaning of “benefit”

      2. Payments and benefits treated as employment income

        1. 403.Charge on payment or other benefit

        2. 404.How the £30,000 threshold applies

      3. Exceptions and reductions

        1. 405.Exception for certain payments exempted when received as earnings

        2. 406.Exception for death or disability payments and benefits

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

        4. 408.Exception for contributions to tax-exempt pension schemes

        5. 409.Exception for payments and benefits in respect of employee liabilities and indemnity insurance

        6. 410.Exception for payments and benefits in respect of employee liabilities and indemnity insurance: individual deceased

        7. 411.Exception for payments and benefits for forces

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

        9. 413.Exception in certain cases of foreign service

        10. 414.Reduction in other cases of foreign service

      4. General and supplementary provisions

        1. 415.Valuation of benefits

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

  8. Part 7 Employment income: share-related income and exemptions

    1. Chapter 1 Introduction

      1. 417.Scope of Part 7

      2. 418.Other provisions about share-related income and exemptions

      3. 419.Duties to provide information

      4. 420.Negative amounts treated as nil

      5. 421.Application of Part 7 to office-holders

    2. Chapter 2 Conditional interests in shares

      1. Introduction

        1. 422.Application of this Chapter

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

        3. 424.Meaning of interest being “only conditional”

        4. 425.Cases where this Chapter does not apply

      2. Tax exemption

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

      3. Tax charge

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

        2. 428.Amount of charge

      4. Supplementary provisions

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

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

        3. 431.Application of this Chapter where employee dies

        4. 432.Duty to notify provision of conditional interests in shares

        5. 433.Duty to notify events resulting in charges under section 427

        6. 434.Minor definitions

    3. Chapter 3 Convertible shares

      1. Introduction

        1. 435.Application of this Chapter

        2. 436.Shares acquired “as a director or employee”

        3. 437.Cases where this Chapter does not apply

      2. Tax charge

        1. 438.Charge on conversion of shares

        2. 439.Amount of charge

        3. 440.Case outside charge under section 438: conversion of entire class

        4. 441.Case outside charge under section 438: acquisition of conditional interest

      3. Supplementary provisions

        1. 442.Amount or value of consideration given for shares or conversion

        2. 443.Amount or value of consideration given for right to acquire shares

        3. 444.Conversion in consequence of employee’s death

        4. 445.Duty to notify conversions of shares

        5. 446.Minor definitions

    4. Chapter 4 Post-acquisition benefits from shares

      1. Introduction

        1. 447.Application of this Chapter

        2. 448.Cases where this Chapter does not apply

      2. Tax charge where restrictions or rights varied

        1. 449.Charge on occurrence of chargeable event

        2. 450.Chargeable events

        3. 451.Amount of charge

        4. 452.Cases outside charge under section 449

      3. Tax charge on increase in value of shares of dependent subsidiaries

        1. 453.Charge on increase in value of shares of dependent subsidiary

        2. 454.Chargeable increases

        3. 455.Amount of charge

        4. 456.Cases outside charge under section 453

      4. Tax charge on other benefits from shares

        1. 457.Charge on other chargeable benefits from shares

        2. 458.Chargeable benefits

        3. 459.Amount of charge

        4. 460.Cases outside charge under section 457

      5. Supplementary provisions

        1. 461.Related acquisitions of additional shares

        2. 462.Company reorganisations etc.

        3. 463.Disposals of shares to connected persons etc. ignored

        4. 464.Application to interests in shares

        5. 465.Duty to notify acquisitions of shares or interests in shares

        6. 466.Duty to notify chargeable events and chargeable benefits

      6. Interpretation

        1. 467.Meaning of “dependent subsidiary”

        2. 468.Meaning of “employee-controlled”

        3. 469.Shares “held by outside shareholders”

        4. 470.Minor definitions

    5. Chapter 5 Share options

      1. Introduction

        1. 471.Share options to which this Chapter applies

        2. 472.Introduction to taxation of share options

        3. 473.Share options to which this Chapter does not apply

      2. Receipt of share option

        1. 474.No charge in respect of receipt of shorter-term option

        2. 475.Value of longer-term option for purposes of liability to tax in respect of receipt

      3. Tax charge on exercise, assignment or release of share option

        1. 476.Charge on exercise, assignment or release of option by employee

        2. 477.Charge on employee where option exercised, assigned or released by another person

        3. 478.Amount of charges

        4. 479.Amount of gain realised by exercising option

        5. 480.Amount of gain realised by assigning or releasing option

        6. 481.Deductible amount in respect of secondary Class 1 contributions met by employee

        7. 482.Deductible amount in respect of special contribution met by employee

      4. Supplementary provisions

        1. 483.Extended meaning of “assign” and “release”

        2. 484.Amount or value of consideration given for grant of share option

        3. 485.Application of this Chapter where share option exchanged for another

        4. 486.Duty to notify matters relating to share options

        5. 487.Minor definitions

    6. Chapter 6 Approved share incentive plans

      1. Introduction

        1. 488.Approved share incentive plans (SIPs)

      2. Scope of tax advantages

        1. 489.Operation of tax advantages in connection with approved SIP

      3. Tax advantages connected with award of shares

        1. 490.No charge on award or acquisition of shares: general

        2. 491.No charge on award of shares as taxable benefit

        3. 492.No charge on partnership share money deducted from salary

        4. 493.No charge on acquisition of dividend shares

      4. Tax advantages connected with holding of shares

        1. 494.No charge on removal of restrictions applying to shares

        2. 495.No charge on increase in value of shares of dependent subsidiary

        3. 496.No charge on cash dividend retained for reinvestment

      5. Tax advantages connected with shares ceasing to be subject to plan

        1. 497.Limitations on charges on shares ceasing to be subject to plan

        2. 498.No charge on shares ceasing to be subject to plan in certain circumstances

      6. Tax advantages: supplementary

        1. 499.No charge in respect of incidental expenditure

      7. Scope of tax charges

        1. 500.Operation of tax charges in connection with approved SIP

      8. Charges connected with holding of shares

        1. 501.Charge on capital receipts in respect of plan shares

        2. 502.Meaning of “capital receipt” in section 501

        3. 503.Charge on partnership share money paid over to employee

        4. 504.Charge on cancellation payments in respect of partnership share agreement

      9. Charges connected with shares ceasing to be subject to plan

        1. 505.Charge on free or matching shares ceasing to be subject to plan

        2. 506.Charge on partnership shares ceasing to be subject to plan

        3. 507.Charge on disposal of beneficial interest during holding period

        4. 508.Identification of shares ceasing to be subject to plan

      10. PAYE

        1. 509.Modification of section 696 where charge on shares ceasing to be subject to plan

        2. 510.Payments by trustees to employer company on shares ceasing to be subject to plan

        3. 511.PAYE deductions to be made by trustees on shares ceasing to be subject to plan

        4. 512.Disposal of beneficial interest by participant

        5. 513.Capital receipts: payments by trustees to employer company

        6. 514.Capital receipts: PAYE deductions to be made by trustees

      11. Other tax consequences

        1. 515.Tax advantages and charges under other Acts

    7. Chapter 7 Approved SAYE option schemes

      1. Introduction

        1. 516.Approved SAYE option schemes

        2. 517.Share options to which this Chapter applies

      2. Tax advantages

        1. 518.No charge in respect of receipt of option

        2. 519.No charge in respect of exercise of option

        3. 520.No charge in respect of post-acquisition benefits

    8. Chapter 8 Approved CSOP schemes

      1. Introduction

        1. 521.Approved CSOP schemes

        2. 522.Share options to which this Chapter applies

      2. Tax advantages

        1. 523.No charge in respect of receipt of option

        2. 524.No charge in respect of receipt of option

        3. 525.No charge in respect of post-acquisition benefits

      3. Tax charge

        1. 526.Charge where option granted at a discount

    9. Chapter 9 Enterprise management incentives

      1. Introduction

        1. 527.Enterprise management incentives: qualifying options

      2. Tax advantages: receipt of option

        1. 528.No charge on receipt of qualifying option

      3. Tax advantages: exercise of option

        1. 529.Scope of tax advantages: option must be exercised within 10 years

        2. 530.No charge on exercise of option to acquire shares at market value

        3. 531.Limitation of charge on exercise of option to acquire shares below market value

      4. Tax advantages where disqualifying events

        1. 532.Modified tax consequences following disqualifying events

        2. 533.Disqualifying events

        3. 534.Disqualifying events relating to relevant company

        4. 535.Disqualifying events relating to employee

        5. 536.Other disqualifying events

        6. 537.Alterations of share capital for purposes of section 536

        7. 538.Share conversions excluded for purposes of section 536

        8. 539.CSOP and other options relevant for purposes of section 536

      5. Tax advantages: taxable benefits

        1. 540.No charge on acquisition of shares as taxable benefit

      6. Other income tax consequences

        1. 541.Effects on other income tax charges

    10. Chapter 10 Priority share allocations

      1. Exemption where offer made to both public and employees

        1. 542.Exemption: offer made to public and employees

        2. 543.Discount not covered by exemption in section 542

      2. Exemption where different offers made to public and employees

        1. 544.Exemption: different offers made to public and employees

        2. 545.Discount not covered by exemption in section 544

      3. Supplementary provisions

        1. 546.Meaning of being entitled “on similar terms”

        2. 547.Meaning and amount or value of “registrant discount”

        3. 548.Minor definitions

    11. Chapter 11 Supplementary provisions about employee benefit trusts

      1. Introduction

        1. 549.Application of this Chapter

      2. Employee benefit trusts

        1. 550.Meaning of “employee benefit trust”

        2. 551.“Qualifying disposals” for purposes of section 550

      3. Attribution of interests in company

        1. 552.Attribution of interest in company to beneficiary or associate

        2. 553.Meaning of “appropriate percentage” for purposes of section 552

        3. 554.Attribution of further interest in company

  9. Part 8 Former employees: deductions for liabilities

    1. Deductions from total income

      1. 555.Former employee entitled to deduction from total income

      2. 556.Deductible payments made outside the time limits allowed

      3. 557.Deductible payments wholly or partly borne by the former employer etc.

    2. Interpretation

      1. 558.Meaning of “deductible payment”

      2. 559.Liabilities related to the former employment

      3. 560.Meaning of “qualifying insurance contract”

      4. 561.Connected contracts

      5. 562.Meaning of “former employee” and “employment”

      6. 563.Other interpretation

      7. 564.Application of this Part to office-holders

  10. Part 9 Pension income

    1. Chapter 1 Introduction

      1. 565.Structure of Part 9

    2. Chapter 2 Tax on pension income

      1. 566.Nature of charge to tax on pension income and relevant definitions

      2. 567.Amount charged to tax

      3. 568.Person liable for tax

    3. Chapter 3 United Kingdom pensions: general rules

      1. 569.United Kingdom pensions

      2. 570.“Pension”: interpretation

      3. 571.Taxable pension income

      4. 572.Person liable for tax

    4. Chapter 4 Foreign pensions: general rules

      1. 573.Foreign pensions

      2. 574.“Pension”: interpretation

      3. 575.Taxable pension income

      4. 576.Person liable for tax

    5. Chapter 5 United Kingdom social security pensions

      1. 577.United Kingdom social security pensions

      2. 578.Taxable pension income

      3. 579.Person liable for tax

    6. Chapter 6 Approved retirement benefits schemes

      1. Pensions and annuities

        1. 580.Pensions and annuities

        2. 581.Taxable pension income

        3. 582.Person liable for tax

      2. Unauthorised payments

        1. 583.Unauthorised payments

        2. 584.Taxable pension income

        3. 585.Person liable for tax

      3. Interpretation etc.

        1. 586.Meaning of “retirement benefits scheme” etc.

        2. 587.Application to marine pilots' benefit fund

        3. 588.Meaning of “employee” and “ex-spouse”

        4. 589.Regulations

    7. Chapter 7 Former approved superannuation funds

      1. Annuities

        1. 590.Annuities

        2. 591.Taxable pension income

        3. 592.Person liable for tax

      2. Unauthorised payments

        1. 593.Unauthorised payments: application of section 583

      3. Interpretation

        1. 594.Meaning of “former approved superannuation fund”

    8. Chapter 8 Approved personal pension schemes

      1. Annuities

        1. 595.Annuities

        2. 596.Taxable pension income

        3. 597.Person liable for tax

      2. Income withdrawals

        1. 598.Income withdrawals

        2. 599.Taxable pension income

        3. 600.Person liable for tax

      3. Unauthorised personal pension payments

        1. 601.Unauthorised personal pension payments

        2. 602.Taxable pension income

        3. 603.Person liable for tax

      4. Interpretation

        1. 604.Meaning of “personal pension scheme” and related expressions

    9. Chapter 9 Retirement annuity contracts

      1. 605.Annuities

      2. 606.Meaning of “retirement annuity contract”

      3. 607.Taxable pension income

      4. 608.Person liable for tax

    10. Chapter 10 Other employment-related annuities

      1. 609.Annuities for the benefit of dependants

      2. 610.Annuities under sponsored superannuation schemes

      3. 611.Annuities in recognition of another’s services

      4. 612.Taxable pension income: UK annuities

      5. 613.Taxable pension income: foreign annuities

      6. 614.Person liable for tax

    11. Chapter 11 Certain overseas government pensions paid in the UK

      1. 615.Certain overseas government pensions paid in the United Kingdom

      2. 616.Taxable pension income

      3. 617.Deduction allowed from taxable pension income

      4. 618.Person liable for tax

    12. Chapter 12 House of Commons Members' Fund

      1. 619.The House of Commons Members' Fund

      2. 620.Meaning of “House of Commons Members' Fund”

      3. 621.Taxable pension income

      4. 622.Person liable for tax

    13. Chapter 13 Return of surplus employee additional voluntary contributions

      1. 623.Return of surplus employee additional voluntary contributions

      2. 624.Taxable pension income

      3. 625.Person liable for tax

      4. 626.Income tax treated as paid

      5. 627.Meaning of “grossing up”

      6. 628.Interpretation

    14. Chapter 14 Pre-1973 pensions paid under the Overseas Pensions Act 1973

      1. 629.Pre-1973 pensions paid under the Overseas Pensions Act 1973

      2. 630.Interpretation

      3. 631.Taxable pension income

      4. 632.Person liable for tax

    15. Chapter 15 Voluntary annual payments

      1. 633.Voluntary annual payments

      2. 634.Taxable pension income: UK voluntary annual payments

      3. 635.Taxable pension income: foreign voluntary annual payments

      4. 636.Person liable for tax

    16. Chapter 16 Exemption for certain lump sums

      1. 637.Exemption for lump sums provided under certain pension schemes etc.

    17. Chapter 17 Exemptions: any taxpayer

      1. 638.Awards for bravery

      2. 639.Pensions in respect of death due to military or war service

      3. 640.Exemption under section 639 where income withheld

      4. 641.Wounds and disability pensions

      5. 642.Compensation for National-Socialist persecution

      6. 643.Malawi, Trinidad and Tobago and Zambia government pensions

      7. 644.Pensions payable where employment ceased due to disablement

      8. 645.Social security pensions: increases in respect of children

      9. 646.Former miners etc: coal and allowances in lieu of coal

    18. Chapter 18 Exemptions: Non-UK resident taxpayers

      1. 647.Introduction and meaning of “foreign residence condition” etc.

      2. 648.The Central African Pension Fund

      3. 649.Commonwealth government pensions

      4. 650.Oversea Superannuation Scheme

      5. 651.Overseas Pensions Act 1973

      6. 652.Overseas Service Act 1958

      7. 653.Overseas Service Pensions Fund

      8. 654.The Pensions (India, Pakistan and Burma) Act 1955

  11. Part 10 Social security income

    1. Chapter 1 Introduction

      1. 655.Structure of Part 10

    2. Chapter 2 Tax on social security income

      1. 656.Nature of charge to tax on social security income

      2. 657.Meaning of “social security income”, “taxable benefits” etc.

      3. 658.Amount charged to tax

      4. 659.Person liable for tax

    3. Chapter 3 Taxable UK social security benefits

      1. 660.Taxable benefits: UK benefits – Table A

      2. 661.Taxable social security income

      3. 662.Person liable for tax

    4. Chapter 4 Taxable UK social security benefits: exemptions

      1. Incapacity benefit

        1. 663.Long-term incapacity benefit: previous entitlement to invalidity benefit

        2. 664.Short-term incapacity benefit not payable at the higher rate

      2. Income support

        1. 665.Exempt unless payable to member of couple involved in trade dispute

        2. 666.Child maintenance bonus

        3. 667.Amounts in excess of taxable maximum

        4. 668.Taxable maximum

        5. 669.Interpretation

      3. Jobseeker’s allowance

        1. 670.Child maintenance bonus

        2. 671.Amounts in excess of taxable maximum

        3. 672.Taxable maximum: general

        4. 673.Taxable maximum: income-based jobseeker’s allowance

        5. 674.Taxable maximum: contribution-based jobseeker’s allowance

        6. 675.Interpretation

      4. Increases in respect of children

        1. 676.Increases in respect of children

    5. Chapter 5 UK social security benefits wholly exempt from income tax

      1. 677.UK social security benefits wholly exempt from tax: Table B

    6. Chapter 6 Taxable foreign benefits

      1. 678.Taxable benefits: foreign benefits

      2. 679.Taxable social security income

      3. 680.Person liable for tax

    7. Chapter 7 Taxable and other foreign benefits: exemptions

      1. 681.Taxable and other foreign benefits: exemptions

  12. Part 11 Pay As You Earn

    1. Chapter 1 Introduction

      1. 682.Scope of this Part

      2. 683.PAYE income

    2. Chapter 2 PAYE: general

      1. 684.PAYE regulations

      2. 685.Tax tables

      3. 686.Meaning of “payment”

    3. Chapter 3 PAYE: special types of payer or payee

      1. 687.Payments by intermediary

      2. 688.Agency workers

      3. 689.Employee of non-UK employer

      4. 690.Employee non-resident etc.

      5. 691.Mobile UK workforce

      6. 692.Organised arrangements for sharing tips

    4. Chapter 4 PAYE: special types of income

      1. Income provided by means of vouchers and tokens

        1. 693.Cash vouchers

        2. 694.Non-cash vouchers

        3. 695.Credit-tokens

      2. Income provided in other ways

        1. 696.Readily convertible assets

        2. 697.Enhancing the value of an asset

        3. 698.PAYE: shares ceasing to be only conditional or being disposed of

        4. 699.PAYE: conversion of shares

        5. 700.PAYE: gains from share options

      3. Supplemental

        1. 701.Meaning of “asset”

        2. 702.Meaning of “readily convertible asset”

    5. Chapter 5 PAYE settlement agreements

      1. 703.Introduction

      2. 704.Sums payable by employers under agreements

      3. 705.Approximations allowed in calculations

      4. 706.Exclusion of general earnings from income etc.

      5. 707.Interpretation of this Chapter

    6. Chapter 6 Miscellaneous and supplemental

      1. 708.PAYE repayments

      2. 709.Additional provision for certain assessments

      3. 710.Notional payments: accounting for tax

      4. 711.Right to make a return

      5. 712.Interpretation of this Part

  13. Part 12 Payroll giving

    1. 713.Donations to charity: payroll deduction scheme

    2. 714.Meaning of “donations”

    3. 715.Approval of schemes: regulation by Treasury

  14. Part 13 Supplementary provisions

    1. Alteration of amounts

      1. 716.Alteration of amounts by Treasury order

    2. Orders and regulations

      1. 717.Orders and regulations made by Treasury or Board

    3. Interpretation

      1. 718.Connected persons

      2. 719.Control in relation to a body corporate

      3. 720.Meaning of “the Inland Revenue” etc.

      4. 721.Other definitions

    4. Amendments, repeals, citation etc.

      1. 722.Consequential amendments

      2. 723.Commencement and transitional provisions and savings

      3. 724.Repeals and revocations

      4. 725.Citation

  15. SCHEDULES

    1. SCHEDULE 1

      Abbreviations and defined expressions

      1. Part 1 Abbreviations of Acts and instruments

      2. Part 2 Index of expressions defined in this Act or ICTA

    2. SCHEDULE 2

      Approved share incentive plans

      1. Part 1 Introduction

        1. 1.Approval of share incentive plans (SIPs)

        2. 2.SIPs: free shares and partnership shares

        3. 3.Matching shares

        4. 4.Group plans

        5. 5.Meaning of “award of shares”, “participant” etc.

      2. Part 2 General requirements

        1. 6.General requirements for approval: introduction

        2. 7.The purpose of the plan

        3. 8.All-employee nature of plan

        4. 9.Participation on same terms

        5. 10.No preferential treatment for directors and senior employees

        6. 11.No further conditions

        7. 12.No loan arrangements

      3. Part 3 Eligibility of individuals

        1. 13.Eligibility of individuals: introduction

        2. 14.Time of eligibility to participate

        3. 15.The employment requirement

        4. 16.Qualifying periods

        5. 17.Meaning of “qualifying company”

        6. 18.Requirement not to participate in other SIPs

        7. 19.The “no material interest” requirement

        8. 20.Meaning of “material interest”

        9. 21.Material interest: options and interests in SIPs

        10. 22.Meaning of “associate”

        11. 23.Meaning of “associate”: trustees of employee benefit trust

        12. 24.Meaning of “associate”: trustees of discretionary trust

      4. Part 4 Types of shares that may be awarded

        1. 25.Types of share that may be awarded: introduction

        2. 26.Shares must be part of ordinary share capital of certain companies

        3. 27.Requirement as to listing etc.

        4. 28.Shares must be fully paid up and not redeemable

        5. 29.Prohibited shares

        6. 30.Only certain kinds of restriction allowed

        7. 31.Permitted restrictions: voting rights

        8. 32.Permitted restrictions: provision for forfeiture

        9. 33.Permitted restrictions: pre-emption conditions

      5. Part 5 Free shares

        1. 34.Free shares: introduction

        2. 35.Maximum annual award

        3. 36.The holding period

        4. 37.Holding period: power of participant to direct trustees to accept general offers etc.

        5. 38.Performance allowances: general application

        6. 39.Performance allowances: targets and measures

        7. 40.Performance allowances: information to be given to employees

        8. 41.Performance allowances: method one

        9. 42.Performance allowances: method two

      6. Part 6 Partnership shares

        1. 43.Partnership shares: introduction

        2. 44.Partnership share agreements

        3. 45.Deductions from salary

        4. 46.Maximum amount of deductions

        5. 47.Minimum amount of deductions

        6. 48.Notice of possible effect of deductions on benefit entitlement

        7. 49.Partnership share money held for employee

        8. 50.Application of money deducted where no accumulation periods

        9. 51.Accumulation periods

        10. 52.Application of money deducted in accumulation period

        11. 53.Restriction on number of shares awarded

        12. 54.Stopping and re-starting deductions

        13. 55.Withdrawal from partnership share agreement

        14. 56.Repayment of partnership share money on withdrawal of approval or termination

        15. 57.Access to partnership shares

      7. Part 7 Matching shares

        1. 58.Matching shares: introduction

        2. 59.General requirements for matching shares

        3. 60.Ratio of matching shares to partnership shares

        4. 61.Holding period for matching shares

      8. Part 8 Cash dividends and dividend shares

        1. 62.Reinvestment of cash dividends

        2. 63.Requirements to be met as regards cash dividends

        3. 64.Limit on amount reinvested

        4. 65.General requirements as to dividend shares

        5. 66.Acquisition of dividend shares

        6. 67.Holding period for dividend shares

        7. 68.Reinvestment: amounts to be carried forward

        8. 69.Cash dividends where no requirement to reinvest

      9. Part 9 Trustees

        1. 70.Requirements etc. relating to trustees: introduction

        2. 71.Establishment of trustees

        3. 72.Duty to act in accordance with participant’s directions

        4. 73.Duty not to dispose of plan shares

        5. 74.Duty to make payments to participants

        6. 75.Duty to give notice of award of shares etc.

        7. 76.Power of trustees to borrow

        8. 77.Power of trustees to raise funds to subscribe for rights issue

        9. 78.Acquisition by trustees of shares from employee share ownership trust

        10. 79.Meeting by trustees of PAYE obligations

        11. 80.Other duties of trustees in relation to tax liabilities

      10. Part 10 Approval of plans

        1. 81.Application for approval

        2. 82.Appeal against refusal of approval

        3. 83.Withdrawal of approval

        4. 84.Disqualifying events for purposes of paragraph 83

        5. 85.Appeal against withdrawal of approval

      11. Part 11 Supplementary provisions

        1. 86.Company reconstructions

        2. 87.Consequences of company reconstructions

        3. 88.Treatment of shares acquired under rights issue

        4. 89.Termination of plan

        5. 90.Effect of plan termination notice

        6. 91.Jointly owned companies

        7. 92.Determination of market value

        8. 93.Power to require information

        9. 94.Meaning of “associated company”

        10. 95.Meaning of participant ceasing to be in relevant employment

        11. 96.Meaning of shares being withdrawn from plan

        12. 97.Meaning of shares ceasing to be subject to plan

        13. 98.Meaning of “the specified retirement age”

        14. 99.Minor definitions

        15. 100.Index of defined expressions

    3. SCHEDULE 3

      Approved SAYE option schemes

      1. Part 1 Introduction

        1. 1.Approval of SAYE option schemes

        2. 2.SAYE option schemes

        3. 3.Group schemes

      2. Part 2 General requirements for approval

        1. 4.General requirements for approval: introduction

        2. 5.General restriction on contents of scheme

        3. 6.All-employee nature of scheme

        4. 7.Participation on similar terms

        5. 8.No preferential treatment for directors and senior employees

      3. Part 3 Eligibility of individuals to participate in scheme

        1. 9.Requirements relating to the eligibility of individuals: introduction

        2. 10.The employment requirement

        3. 11.The “no material interest” requirement

        4. 12.Meaning of “material interest”

        5. 13.Material interest: options and interests in SIPs

        6. 14.Meaning of “associate”

        7. 15.Meaning of “associate”: trustees of employee benefit trust

        8. 16.Meaning of “associate”: trustees of discretionary trust

      4. Part 4 Shares to which schemes can apply

        1. 17.Requirements relating to shares that may be subject to share options: introduction

        2. 18.Shares must be ordinary shares of certain companies

        3. 19.Requirements as to listing

        4. 20.Shares must be fully paid up and not redeemable

        5. 21.Only certain kinds of restriction allowed

        6. 22.Requirements as to other shareholdings

      5. Part 5 Requirement for linked savings scheme

        1. 23.Requirements as to linked savings scheme: introduction

        2. 24.Payments for shares to be linked to approved savings schemes

        3. 25.Requirements as to contributions to savings schemes

        4. 26.Repayments under a savings scheme: whether bonuses included

      6. Part 6 Requirements etc. relating to share options

        1. 27.Requirements etc. relating to share options: introduction

        2. 28.Requirements as to price for acquisition of shares

        3. 29.Share options must not be transferable

        4. 30.Time for exercising options: general

        5. 31.Requirement to have a “specified age”

        6. 32.Exercise of options: death

        7. 33.Exercise of options: reaching specified age without retiring

        8. 34.Exercise of options: scheme-related employment ends

        9. 35.Time when scheme-related employment ends

        10. 36.Exercise of options: employment in associated company at bonus date

        11. 37.Exercise of options: company events

      7. Part 7 Exchange of share options

        1. 38.Exchange of options on company reorganisation

        2. 39.Requirements about share options granted in exchange

      8. Part 8 Approval of schemes

        1. 40.Application for approval

        2. 41.Appeal against refusal of approval

        3. 42.Withdrawal of approval

        4. 43.Approval ineffective after unapproved alteration

        5. 44.Appeal against withdrawal of approval etc.

      9. Part 9 Supplementary provisions

        1. 45.Power to require information

        2. 46.Jointly owned companies

        3. 47.Meaning of “associated company”

        4. 48.Minor definitions

        5. 49.Index of defined expressions

    4. SCHEDULE 4

      Approved CSOP schemes

      1. Part 1 Introduction

        1. 1.Approval of CSOP schemes

        2. 2.CSOP schemes

        3. 3.Group schemes

      2. Part 2 General requirements for approval

        1. 4.General requirements for approval: introduction

        2. 5.General restriction on contents of scheme

        3. 6.Limit on value of shares subject to options

      3. Part 3 Eligibility of individuals to participate in scheme

        1. 7.Requirements relating to the eligibility of individuals: introduction

        2. 8.The employment requirement

        3. 9.The “no material interest” requirement

        4. 10.Meaning of “material interest”

        5. 11.Material interest: options and interests in SIPs

        6. 12.Meaning of “associate”

        7. 13.Meaning of “associate”: trustees of employee benefit trust

        8. 14.Meaning of “associate”: trustees of discretionary trust

      4. Part 4 Shares to which schemes can apply

        1. 15.Requirements relating to shares that may be subject to share options: introduction

        2. 16.Shares must be ordinary shares of certain companies

        3. 17.Requirements as to listing

        4. 18.Shares must be fully paid up and not redeemable

        5. 19.Only certain kinds of restriction allowed

        6. 20.Requirements as to other shareholdings

      5. Part 5 Requirements etc. relating to share options

        1. 21.Requirements etc. relating to share options: introduction

        2. 22.Requirements as to price for acquisition of shares

        3. 23.Share options must not be transferable

        4. 24.Exercise of options: ceasing to be director or employee

        5. 25.Exercise of options: death

      6. Part 6 Exchange of share options

        1. 26.Exchange of options on company reorganisation

        2. 27.Requirements about share options granted in exchange

      7. Part 7 Approval of schemes

        1. 28.Application for approval

        2. 29.Appeal against refusal of approval

        3. 30.Withdrawal of approval

        4. 31.Approval ineffective after unapproved alteration

        5. 32.Appeal against withdrawal of approval etc.

      8. Part 8 Supplementary provisions

        1. 33.Power to require information

        2. 34.Jointly owned companies

        3. 35.Meaning of “associated company”

        4. 36.Minor definitions

        5. 37.Index of defined expressions

    5. SCHEDULE 5

      Enterprise management incentives

      1. Part 1 Introduction

        1. 1.Enterprise management incentives: qualifying options

        2. 2.Meaning of “the relevant company” and “the employer company”

      2. Part 2 General requirements

        1. 3.General requirements: introduction

        2. 4.Purpose of granting the option

        3. 5.Maximum entitlement of employee: financial limit on unexercised options

        4. 6.Maximum entitlement of employee: further limit of 3 years

        5. 7.Maximum value of options in respect of relevant company’s shares

      3. Part 3 Qualifying companies

        1. 8.Qualifying companies: introduction

        2. 9.The independence requirement

        3. 10.The qualifying subsidiaries requirement

        4. 11.Meaning of “qualifying subsidiary”

        5. 12.The gross assets requirement

        6. 13.The trading activities requirement: single company

        7. 14.The trading activities requirement: parent company

        8. 15.Meaning of “qualifying trade”

        9. 16.Excluded activities

        10. 17.Excluded activities: wholesale and retail distribution

        11. 18.Excluded activities: leasing of certain ships

        12. 19.Excluded activities: receipt of royalties or licence fees

        13. 20.Excluded activities: property development

        14. 21.Excluded activities: hotels and comparable establishments

        15. 22.Excluded activities: nursing homes and residential care homes

        16. 23.Excluded activities: provision of facilities for another business

      4. Part 4 Eligible employees

        1. 24.Eligible employees: introduction

        2. 25.The employment requirement

        3. 26.The requirement as to commitment of working time

        4. 27.Meaning of “working time”

        5. 28.The “no material interest” requirement

        6. 29.Meaning of “material interest”

        7. 30.Material interest: options and interests in SIPs

        8. 31.Meaning of “associate”

        9. 32.Meaning of “associate”: trustees of employee benefit trust

        10. 33.Meaning of “associate”: trustees of discretionary trust

      5. Part 5 Requirements relating to options

        1. 34.Requirements relating to options: introduction

        2. 35.Type of shares that may be acquired

        3. 36.Option to be capable of exercise within 10 years

        4. 37.Terms of option to be agreed in writing

        5. 38.Non-assignability of rights

      6. Part 6 Company reorganisations

        1. 39.Company reorganisations: introduction

        2. 40.Meaning of “qualifying exchange of shares”

        3. 41.Grant of replacement option

        4. 42.Period within which replacement option must be granted

        5. 43.Further requirements to be met as to replacement option

      7. Part 7 Notification of option to Inland Revenue

        1. 44.Notice of option to be given to Inland Revenue

        2. 45.Correction of notice by Inland Revenue

        3. 46.Notice of enquiry

        4. 47.Completion of enquiry: closure notices

        5. 48.Completion of enquiry: application for closure notice to be given

        6. 49.Effect of enquiry

        7. 50.Appeals

      8. Part 8 Supplementary provisions

        1. 51.Power to require information

        2. 52.Annual returns

        3. 53.Compliance with time limits

        4. 54.Power to amend by Treasury order

        5. 55.Meaning of “market value” of shares

        6. 56.Determination of market value of shares

        7. 57.Appeal against determination of market value of shares

        8. 58.Minor definitions

        9. 59.Index of defined expressions

    6. SCHEDULE 6

      Consequential Amendments

      1. Part 1 Income and Corporation Taxes Act 1988

        1. 1.The Income and Corporation Taxes Act 1988 (c. 1) is...

        2. 2.(1) Amend section 1 (the charge to income tax) as...

        3. 3.In section 4(1) (construction of references in Income Tax Acts...

        4. 4.In section 9(3) (computation of income for corporation tax: application...

        5. 5.(1) Amend section 18 (Schedule D) as follows.

        6. 6.Omit section 19 (Schedule E).

        7. 7.In section 21A(2) (computation of amount chargeable)—

        8. 8.Omit section 58 (foreign pensions).

        9. 9.In section 65(2) (Cases IV and V assessments: general) omit...

        10. 10.After section 68 insert— Share incentive plans: application of section...

        11. 11.(1) Amend section 84A (costs of establishing share option or...

        12. 12.After section 85A insert— Approved share incentive plans Schedule 4AA (which provides for deductions relating to approved share...

        13. 13.(1) Amend section 86A (charitable donations: contributions to agent’s expenses)...

        14. 14.Omit sections 131 to 134 (miscellaneous provisions relating to the...

        15. 15.Omit sections 135 to 137 (provisions relating to gains by...

        16. 16.(1) Amend section 138 (share acquisitions by directors and employees)...

        17. 17.Omit section 140 (further interpretation of sections 135 to 139)....

        18. 18.Omit sections 140A to 140H (further provisions relating to share...

        19. 19.Omit sections 141 to 144 (vouchers and credit-tokens).

        20. 20.Omit section 144A (payments received free of tax).

        21. 21.Omit sections 145 to 147 (living accommodation).

        22. 22.Omit sections 148 to 151A (payments on retirement, sick pay...

        23. 23.For the sidenote to section 152 (notification of amount taxable...

        24. 24.Omit sections 153 to 159AC and sections 160 to 168G...

        25. 25.Omit section 185 (approved share option schemes).

        26. 26.(1) Amend section 186 (approved profit sharing schemes) as follows....

        27. 27.In section 187 (interpretation of sections 185 and 186 and...

        28. 28.Omit the following provisions (which give relief from income tax...

        29. 29.Omit sections 202A and 202B (assessment on receipts basis).

        30. 30.Omit sections 203 to 204 (pay as you earn).

        31. 31.Omit sections 205 and 206 (assessments).

        32. 32.Omit section 206A (PAYE settlement agreements).

        33. 33.Omit section 207 (disputes as to domicile or ordinary residence)....

        34. 34.After section 251 insert— Approved share incentive plans Application of...

        35. 35.In section 257C(2A) (indexation of amounts in sections 257 and...

        36. 36.After section 266 insert— Life assurance premiums paid by employer...

        37. 37.In section 306(7) (claims) for “regulations made under section 203”...

        38. 38.In section 307(6)(a)(i) (withdrawal of relief) for “regulations under section...

        39. 39.Omit section 313 (taxation of consideration for certain restrictive undertakings)....

        40. 40.In section 314(1) (divers and diving supervisors) for the words...

        41. 41.Omit sections 315 to 318 (pensions etc. paid in respect...

        42. 42.Omit section 319 (crown servants: foreign service allowance).

        43. 43.Omit section 321 (consuls and other official agents).

        44. 44.(1) Amend section 322 (consular officers and employees) as follows....

        45. 45.(1) Amend section 323 (visiting forces) as follows.

        46. 46.Omit section 330 (compensation for National-Socialist persecution).

        47. 47.(1) Amend section 332 (expenditure and houses of ministers of...

        48. 48.(1) Amend section 336 (temporary residents in the United Kingdom)...

        49. 49.In section 347A(5) (annual payments: general rule) for “, 68(1)(b)...

        50. 50.(1) Amend section 348 (payments out of profits or gains...

        51. 51.(1) Amend section 349 (payments not out of profits or...

        52. 52.In section 376(2) (qualifying borrowers and qualifying lenders) for the...

        53. 53.In section 391(2) (losses from trade etc. carried on abroad)...

        54. 54.(1) Amend section 392 (Case VI losses) as follows.

        55. 55.(1) Amend section 418 (“distribution” to include certain expenses of...

        56. 56.In section 545(1)(a) (capital redemption policies) after “Schedule D” insert...

        57. 57.In section 550(7) (relief where gain charged at a higher...

        58. 58.In section 559(1A) (sub-contractors in the construction industry) for “chargeable...

        59. 59.In section 561(6) (exceptions from section 559), for “the same...

        60. 60.In section 565(2C)(a) (conditions to be satisfied by companies), for...

        61. 61.In section 566(1) (general powers to make regulations under Chapter...

        62. 62.(1) Section 577 (business entertaining expenses) is amended as follows....

        63. 63.Omit section 579(1) (statutory redundancy payments).

        64. 64.Omit section 580(3) (provisions supplementary to section 579(1)).

        65. 65.In section 580A(7)(b) (relief from tax on annual payments under...

        66. 66.(1) Amend section 585 (relief from tax on delayed remittances)...

        67. 67.(1) Amend section 588 (training courses for employees) as follows....

        68. 68.Omit section 589 (qualifying courses of training etc.).

        69. 69.(1) Section 589A (counselling services for employees) is amended as...

        70. 70.(1) Section 589B (qualifying counselling services etc.) is amended as...

        71. 71.In section 591D (provisions supplementary to section 591C) omit subsection...

        72. 72.For section 592(7) (exempt approved schemes) substitute—

        73. 73.In section 594(1) (exempt statutory schemes)— (a) for the words...

        74. 74.Omit sections 595 and 596 (payments by employer to retirement...

        75. 75.Omit sections 596A to 596C (benefits under non-approved retirement benefits...

        76. 76.Omit section 597 (charge to tax: pensions).

        77. 77.In section 599A (charge to tax: payments out of surplus...

        78. 78.Omit section 600 (charge to tax: unauthorised payments to or...

        79. 79.(1) Amend section 606 (default of administrator of retirement benefits...

        80. 80.(1) Amend section 607 (marine pilots: pilots' benefit fund) as...

        81. 81.In section 608 (charge to tax on annuities paid out...

        82. 82.In section 612(1) (interpretation etc. of Chapter) in the definition...

        83. 83.In section 613 (Parliamentary pension funds) omit subsections (1) to...

        84. 84.In section 614(3) (exemptions and reliefs in respect of income...

        85. 85.In section 615 (exemption from tax in respect of certain...

        86. 86.Omit section 616 (other overseas pensions).

        87. 87.(1) Amend section 617 (social security benefits and contributions) as...

        88. 88.Omit section 617A (tax credits under Part 1 of Tax...

        89. 89.In section 624(2) (sponsored superannuation schemes and controlling directors) for...

        90. 90.(1) Amend section 638 (other restrictions on approval of a...

        91. 91.(1) Section 643 (employer’s contributions and personal pension income etc.)...

        92. 92.(1) Amend section 644 (meaning of “relevant earnings”) as follows....

        93. 93.(1) Amend section 645 (earnings from pensionable employment) as follows....

        94. 94.In section 646(2) (meaning of “net relevant earnings”) for paragraph...

        95. 95.(1) Amend section 646A (earnings from associated employments) as follows....

        96. 96.Omit sections 647 to 648A (personal pensions: unauthorised payments, contributions...

        97. 97.In section 657(2)(f)(i) (purchased life annuities to which section 656...

        98. 98.In section 658A(1) (charges and assessments on administrators) after “this...

        99. 99.(1) Amend section 659B (definition of insurance company) as follows....

        100. 100.After section 686A insert— Share incentive plans: distributions in respect...

        101. 101.In section 779(13)(e) (sale and lease-back: limitation on tax reliefs),...

        102. 102.In section 781(4)(d) (assets leased to traders and others), for...

        103. 103.In section 794(2)(b) (requirements as to residence) for “income tax...

        104. 104.In section 824(4A) (repayment supplement: individuals and others) for “section...

        105. 105.(1) Amend section 828 (orders and regulations made by the...

        106. 106.In section 830 (territorial sea and designated areas) omit subsection...

        107. 107.In section 831(3) (interpretation of ICTA) before the entry relating...

        108. 108.(1) Amend section 833 (interpretation of Income Tax Acts) as...

        109. 109.After Schedule 4 insert— SCHEDULE 4AA Share incentive plans: corporation...

        110. 110.Omit Schedules 6 and 6A (taxation of directors and others:...

        111. 111.Omit Schedules 7 and 7A (taxation of benefit of loans)....

        112. 112.(1) Amend Schedule 9 (approved share option schemes and profit...

        113. 113.(1) Amend Schedule 10 (further provisions relating to profit sharing...

        114. 114.Omit Schedule 11 (payments and other benefits in connection with...

        115. 115.Omit Schedule 11A (removal benefits and expenses).

        116. 116.Omit Schedule 12 (foreign earnings).

        117. 117.Omit Schedule 12AA (mileage allowances).

        118. 118.Omit Schedule 12A (ordinary commuting and private travel).

        119. 119.In Schedule 14 (modification of section 266 in certain cases),...

        120. 120.(1) Amend paragraph 2 of Schedule 15A (contractual savings schemes)...

        121. 121.(1) Amend paragraph 5B of Schedule 18 (group relief: equity...

      2. Part 2 Other enactments

        1. 122.Finance Act 1969 (c. 32)

        2. 123.Taxes Management Act 1970 (c. 9)

        3. 124.In section 7(4) and (5) (notice of liability to income...

        4. 125.(1) Amend section 9 (returns to include self-assessment) as follows....

        5. 126.(1) Amend section 15 (return of employee’s emoluments etc.) as...

        6. 127.For section 16A substitute— Agency workers (1) This section applies where— (a) any services which an...

        7. 128.In section 42(3) (procedure for making claims etc.) for “section...

        8. 129.In section 46B(5) (questions as to the application of provisions...

        9. 130.In section 59A (payments on account of income tax)—

        10. 131.(1) Amend section 59B (payment of income tax and capital...

        11. 132.In section 62(1A)(a) (priority of claim for tax)—

        12. 133.In section 63(3)(a) (recovery of tax in Scotland) for “section...

        13. 134.In section 64(1A)(a) (priority of claim for tax in Scotland)—...

        14. 135.(1) Amend section 70 (evidence) as follows.

        15. 136.In section 91(3)(c) (effect on interest of reliefs) for “section...

        16. 137.(1) Amend the Table in section 98 (special returns, etc.)...

        17. 138.In section 98A(1) (special penalties in the case of certain...

        18. 139.In section 118 (interpretation) after the entry relating to “inspector”...

        19. 140.In section 119(4) (construction of the Act) after “1992 Act”...

        20. 141.In paragraph 4(1A) of Schedule 1A (claims etc. not included...

        21. 142.In paragraph 3 of Schedule 3 (rules for assigning proceedings...

        22. 143.In Schedule 3A (electronic lodgement of tax returns etc.) in...

        23. 144.Finance Act 1973 (c. 51)

        24. 145.In paragraph 2(b) for “emoluments” substitute “earnings or amounts treated...

        25. 146.In paragraph 5 for “Schedule E” substitute “the Income Tax...

        26. 147.Finance Act 1974 (c. 30)

        27. 148.Interpretation Act 1978 (c. 30)

        28. 149.Education (Scotland) Act 1980 (c. 44)

        29. 150.Inheritance Tax Act 1984 (c. 51)

        30. 151.(1) Amend the following provisions as provided in sub-paragraph (2)—...

        31. 152.In section 14(1) (waiver of remuneration), for “would be assessable...

        32. 153.Bankruptcy (Scotland) Act 1985 (c. 66)

        33. 154.Insolvency Act 1986 (c. 45)

        34. 155.Finance Act 1988 (c. 39)

        35. 156.Finance Act 1989 (c. 26)

        36. 157.For section 43 substitute— Schedule D: computation (1) In calculating profits or gains of a trade to...

        37. 158.For section 44 substitute— Investment and insurance companies: computation (1) In calculating the profits of an investment company for...

        38. 159.In section 53(2)(f) (amendments consequential on the substitution of a...

        39. 160.(1) Amend section 69 (chargeable events in relation to employee...

        40. 161.(1) Amend section 76 (non-approved retirement benefits schemes) as follows....

        41. 162.In section 178(2) (setting of rates of interest)—

        42. 163.(1) Amend Schedule 5 (employee share ownership trusts) as follows....

        43. 164.Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19))

        44. 165.Finance Act 1990 (c. 29)

        45. 166.(1) Amend section 25(2) (donations to charity by individuals) as...

        46. 167.(1) Amend paragraph 4 of Schedule 14 (amendments of sections...

        47. 168.Finance Act 1991 (c. 31)

        48. 169.Social Security Contributions and Benefits Act 1992 (c. 4)

        49. 170.In section 1 (outline of contributory system), in subsection (2)(bb)...

        50. 171.In section 2 (categories of earners), in subsection (1)(a) for...

        51. 172.(1) Amend section 4 (payments treated as remuneration and earnings)...

        52. 173.In section 7(1)(b) (meaning of “secondary contributor”) for “emoluments” in...

        53. 174.(1) Amend section 10 (Class 1A National Insurance contributions: benefits...

        54. 175.(1) Amend section 10ZA (liability of third party provider of...

        55. 176.(1) Amend section 10ZB (non-cash vouchers provided by third parties)...

        56. 177.(1) Amend section 10A (Class 1B National Insurance contributions) as...

        57. 178.(1) Amend section 122(1) (interpretation of Parts 1 to 6...

        58. 179.In section 126(5)(a)(ii) (trade disputes) for “emoluments in pursuance of...

        59. 180.(1) Amend section 150(2) (interpretation of Part 10) as follows....

        60. 181.In section 163(1) (interpretation of Part 11), in paragraph (a)...

        61. 182.In section 171(1) (interpretation of Part 12), in paragraph (a)...

        62. 183.In section 171ZJ(2)(a) (Part 12ZA: supplementary) for “emoluments chargeable to...

        63. 184.In section 171ZS(2)(a) (Part 12ZB: supplementary) for “emoluments chargeable to...

        64. 185.In Schedule 1 (supplementary provisions relating to contributions of Classes...

        65. 186.Social Security Administration Act 1992 (c. 5)

        66. 187.(1) Amend section 139(11) (definitions used in provisions relating to...

        67. 188.(1) Amend section 159B(6) (effect of alterations affecting state pension...

        68. 189.(1) Amend section 162(5) (destination of national insurance contributions) as...

        69. 190.Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

        70. 191.In section 1 (outline of contributory system), in subsection (2)(bb)...

        71. 192.In section 2 (categories of earners), in subsection (1)(a) for...

        72. 193.(1) Amend section 4 (payments treated as remuneration and earnings)...

        73. 194.In section 7(1)(b) (meaning of “secondary contributor”) for “emoluments” in...

        74. 195.(1) Amend section 10 (Class 1A National Insurance contributions: benefits...

        75. 196.(1) Amend section 10ZA (liability of third party provider of...

        76. 197.(1) Amend section 10ZB (non-cash vouchers provided by third parties)...

        77. 198.(1) Amend section 10A (Class 1B National Insurance contributions) as...

        78. 199.(1) Amend section 121(1) (interpretation of Parts 1 to 6...

        79. 200.In section 125(5)(a)(ii) (trade disputes) for “emoluments in pursuance of...

        80. 201.(1) Amend section 146(2) (interpretation of Part 10) as follows....

        81. 202.In section 159(1) (interpretation of Part 11), in paragraph (a)...

        82. 203.In section 167(1) (interpretation of Part 12), in paragraph (a)...

        83. 204.In Schedule 1 (supplementary provisions relating to contributions of Classes...

        84. 205.Social Security Administration (Northern Ireland) Act 1992 (c. 8)

        85. 206.In section 142(5) of that Act (destination of national insurance...

        86. 207.Taxation of Chargeable Gains Act 1992 (c. 12)

        87. 208.In section 9(2) (residence, including temporary residence)—

        88. 209.In section 11(1) (visiting forces, agents-general etc.)—

        89. 210.(1) Amend section 120 (increased expenditure by reference to tax...

        90. 211.(1) Amend section 149B (employee incentive schemes: conditional interests in...

        91. 212.After section 149B insert— Priority share allocations Section 17(1) shall not apply to an acquisition of shares...

        92. 213.In section 222(8D)(b) (relief on disposal of private residence), for...

        93. 214.In section 236A (employee share ownership plans), and in the...

        94. 215.In section 238(2)(a) (approved profit sharing and share option schemes),...

        95. 216.After section 238 insert— Approved share schemes and share incentives...

        96. 217.After section 263 insert— Former employees: employment-related liabilities (1) This section applies if— (a) a deduction of the...

        97. 218.In section 271 (other miscellaneous exemptions), for subsection (1)(c) substitute—...

        98. 219.(1) Amend section 288(1) (interpretation) as follows.

        99. 220.(1) Amend Schedule 7C (relief for transfers to approved share...

        100. 221.After Schedule 7C insert— SCHEDULE 7D Approved share schemes and...

        101. 222.Pension Schemes Act 1993 (c. 48)

        102. 223.Pension Schemes (Northern Ireland) Act 1993 (c. 49)

        103. 224.Finance Act 1994 (c. 9)

        104. 225.Finance Act 1995 (c. 4)

        105. 226.(1) Amend section 128 (limit on income chargeable on non-residents:...

        106. 227.In section 137(7) (part-time workers: miscellaneous provisions) for “Subsections (2)...

        107. 228.Jobseekers Act 1995 (c. 18)

        108. 229.In section 15(2)(c)(i) (effect on other claimants) for “emoluments in...

        109. 230.In section 26(3) (the back to work bonus) for the...

        110. 231.Child Support Act 1995 (c. 34)

        111. 232.Child Support (Northern Ireland) Order 1995 (S.I. 1995/2702 (N.I. 13))

        112. 233.Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/2705 (N.I. 15))

        113. 234.In Article 17(2)(c)(i) (effect on other claimants) for “emoluments in...

        114. 235.In Article 28(3) (the back to work bonus) for the...

        115. 236.Teaching and Higher Education Act 1998 (c. 30)

        116. 237.Scotland Act 1998 (c. 46)

        117. 238.Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14))

        118. 239.Tax Credits Act 1999 (c. 10)

        119. 240.In section 6(1) (payment of tax credit by employers etc.)...

        120. 241.In paragraph 10(1) of Schedule 2 (transfer of functions), in...

        121. 242.Finance Act 2000 (c. 17)

        122. 243.(1) Amend section 38 (payroll deduction scheme) as follows.

        123. 244.(1) Amend Schedule 12 (provision of services through an intermediary)...

        124. 245.(1) In Schedule 20 (tax relief for expenditure of research...

        125. 246.Capital Allowances Act 2001 (c. 2)

        126. 247.(1) Amend section 4 (capital expenditure) as follows.

        127. 248.(1) Amend section 20 (employments and offices) as follows.

        128. 249.In section 61(2) (disposal events and disposal values), in entry...

        129. 250.In section 63(1) (cases in which disposal value is nil)...

        130. 251.In section 72(3) (disposal values), in entry 2(b) of the...

        131. 252.In section 88(c) (sales at under-value) for “Schedule E” substitute...

        132. 253.In section 262 (employments and offices)— (a) in paragraph (a)...

        133. 254.In section 423(1) (disposal value for sections 421 and 422),...

        134. 255.At the end of Part 1 of Schedule 1 (abbreviations)...

        135. 256.In Part 2 of Schedule 1 (defined expressions used in...

        136. 257.Finance Act 2001 (c. 9)

        137. 258.(1) In Schedule 22 (remediation of contaminated land), amend paragraph...

        138. 259.Social Security Contributions (Share Options) Act 2001 (c. 20)

        139. 260.In section 2(3)(b) (effect of notice under section 1) for...

        140. 261.(1) Amend section 3 (special provision for roll-overs) as follows....

        141. 262.In section 5(2)(c) (interpretation)— (a) for “subsection (8) of section...

        142. 263.State Pension Credit Act 2002 (c. 16)

        143. 264.Tax Credits Act 2002 (c. 21)

        144. 265.(1) Amend section 25 (payments of working tax credit by...

        145. 266.In section 29(5) (recovery of overpayments) for “regulations under section...

        146. 267.State Pension Credit Act (Northern Ireland) 2002 (c. 14 (N.I.))

        147. 268.Certain corresponding Northern Ireland provision

        148. 269.(1) This paragraph applies if provision is made for Northern...

    7. SCHEDULE 7

      Transitionals and savings

      1. Part 1 Continuity of the law

        1. 1.The repeal of provisions and their enactment in a rewritten...

        2. 2.Paragraph 1 does not apply to any change in the...

        3. 3.Any subordinate legislation or other thing which—

        4. 4.Any reference (express or implied) in any enactment, instrument or...

        5. 5.Any reference (express or implied) in any enactment, instrument or...

        6. 6.Paragraphs 1 to 5 have effect instead of section 17(2)...

        7. 7.Paragraphs 4 and 5 apply only in so far as...

      2. Part 2 Employment income: charge to tax

        1. 8.Taxable earnings

        2. 9.Relief for delayed remittances

        3. 10.Section 36(2) (the definition of “blocked earnings”) applies in relation...

        4. 11.(1) This paragraph applies where a claimant—

        5. 12.Disputes as to domicile or ordinary residence

        6. 13.Application of provisions to agency workers

        7. 14.Section 44(2) does not apply in relation to—

      3. Part 3 Employment income: earnings and benefits etc. treated as earning

        1. 15.Taxable benefits: dispensations relating to benefits within provisions not applicable to lower-paid employments

        2. 16.(1) This paragraph applies if— (a) mileage allowance payments are...

        3. 17.Taxable benefits: the benefits code

        4. 18.Taxable benefits: vouchers and credit-tokens

        5. 19.(1) This paragraph applies to a notification which, immediately before...

        6. 20.(1) This paragraph applies if— (a) mileage allowance payments are...

        7. 21.Taxable benefits: living accommodation

        8. 22.Taxable benefits: cars, vans and related benefits

        9. 23.(1) In relation to a capital sum contributed by the...

        10. 24.(1) This paragraph applies to the operation of section 156(4)...

        11. 25.Taxable benefits: loans

        12. 26.(1) This paragraph relates to the operation of section 183...

        13. 27.(1) Subject to paragraph 25(2), where a loan is made...

        14. 28.Taxable benefits: notional loans in respect of acquisitions of shares

        15. 29.(1) This paragraph relates to the operation of Chapter 8...

        16. 30.Taxable benefits: disposals of shares for more than market value

        17. 31.(1) This paragraph relates to the operation of section 199...

        18. 32.Taxable benefits: residual liability to charge

      4. Part 4 Employment income: exemptions

        1. 33.Incidental overnight expenses and benefits

        2. 34.In determining— (a) whether section 141(6C) and (6D), 142(3C) and...

        3. 35.Removal benefits and expenses

        4. 36.A direction under paragraph 6(2) of Schedule 11A to ICTA...

        5. 37.Retraining courses

        6. 38.Suggestion awards

      5. Part 5 Employment income: deductions

        1. 39.Earnings charged on remittance

        2. 40.Non-domiciled employee’s travel costs and expenses: “qualifying arrival date”

      6. Part 6 Employment income: income which is not earnings or share-related

        1. 41.Benefits from non-approved pension schemes

        2. 42.Payments and benefits on termination of employment etc.

        3. 43.(1) This paragraph applies for the purpose of determining how...

      7. Part 7 Employment income: share-related income

        1. 44.Conditional interests in shares

        2. 45.(1) This paragraph relates to the operation of section 425...

        3. 46.(1) This paragraph relates to the operation of section 428...

        4. 47.(1) This paragraph applies where— (a) in the tax year...

        5. 48.(1) This paragraph applies where— (a) a person had an...

        6. 49.Convertible shares

        7. 50.(1) This paragraph relates to the operation of section 437...

        8. 51.(1) This paragraph relates to the operation of section 439...

        9. 52.(1) This paragraph relates to the operation of section 439...

        10. 53.(1) This paragraph applies where— (a) a person provided an...

        11. 54.Post-acquisition benefits from shares

        12. 55.(1) Chapter 4 of Part 7 applies in relation to...

        13. 56.The removal or variation of a restriction applying to shares...

        14. 57.Despite the repeals made by this Act—

        15. 58.(1) This paragraph relates to the operation of section 448...

        16. 59.(1) This paragraph relates to the operation of section 455...

        17. 60.(1) This paragraph applies where any acquisition of shares or...

        18. 61.(1) This paragraph applies where after 4th February but before...

        19. 62.Share options

        20. 63.(1) This paragraph relates to the operation of section 473...

        21. 64.(1) This paragraph relates to the operation of section 478...

        22. 65.(1) This paragraph relates to the operation of section 479...

        23. 66.(1) This paragraph relates to the operation of section 480...

        24. 67.(1) This paragraph applies where in the tax year 2002-03...

        25. 68.Approved share incentive plans

        26. 69.(1) Any reference in any enactment, instrument or document—

        27. 70.Nothing in paragraph 91(4) of Schedule 2 to this Act...

        28. 71.Approved SAYE option schemes

        29. 72.(1) Any reference in the SAYE code to a share...

        30. 73.Approved CSOP schemes

        31. 74.(1) Any reference in the CSOP code to a share...

        32. 75.(1) This paragraph has effect where, immediately before 6th April...

        33. 76.(1) This paragraph applies to any right obtained by an...

        34. 77.Enterprise management incentives

        35. 78.(1) In section 535 (disqualifying events relating to employee), subsections...

        36. 79.(1) Section 536 (other disqualifying events) has effect in relation...

        37. 80.(1) Section 537 (alteration of share capital for purposes of...

        38. 81.In a case where the qualifying option was granted before...

        39. 82.(1) This paragraph relates to the operation of section 541(2)...

        40. 83.In Schedule 5 (enterprise management incentives), paragraph 41(6) (like other...

        41. 84.Employee benefit trusts

      8. Part 8 Approved profit sharing schemes

        1. 85.Trustees' duty to provide information

        2. 86.Share incentive plans

        3. 87.Other share schemes: eligibility of individuals and material interests

      9. Part 9 Social security income

        1. 88.Disabled person’s and working families' tax credits

      10. Part 10 PAYE

        1. 89.PAYE regulations

      11. Part 11 Consequences for corporation tax

        1. 90.(1) This paragraph applies where— (a) a company is charged...

        2. 91.(1) This paragraph applies in relation to corporation tax charged...

        3. 92.(1) The provisions of this Act mentioned in sub-paragraph (2)...

    8. SCHEDULE 8

      Repeals and revocations

      1. Part 1 Acts of Parliament

      2. Part 2 Subordinate legislation

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources

The data on this page is available in the alternative data formats listed: