Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 6 U.K. Exempt income

Chapter 9 U.K. Other income

Interest only income U.K.

749 [F1 Repayment interest, and interest] paid under repayment supplements U.K.

No liability to income tax arises in respect of interest paid under—

(a) section 824 of ICTA (repayment supplements: individuals and others), F2 ...

(b) section 283 of TCGA 1992 (repayment supplements)[F3 , or

(c) section 102 of FA 2009 (repayment interest).]

Textual Amendments

F1 Words in s. 749 heading substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 8(1)(c)

F2 Word in s. 749 omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 8(1)(a)

F3 S. 749(c) and word inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 2009, Sections 101 and 102 (Interest on Late Payments and Repayments), Appointed Days and Consequential Provisions Order 2014 (S.I. 2014/992), arts. 1(1), 8(1)(b)

[F4 749A Interest on tax overpaid U.K.

No liability to income tax arises in respect of interest paid under section 826 of ICTA (interest on tax overpaid).]

Textual Amendments

F4 S. 749A inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 635 (with Sch. 2 Pts. 1, 2)

F5 750 Interest from tax reserve certificates U.K.

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Textual Amendments

F5 S. 750 repealed (with effect in accordance with Sch. 39 para. 53(3) of the amending Act) by Finance Act 2012 (c. 14), Sch. 39 para. 53(1)(a)

751 Interest on damages for personal injury U.K.

(1) No liability to income tax arises in respect of interest on damages for personal injury or death if—

(a) it is included in a sum awarded by a court,

(b) it does not relate to the period between the making and satisfaction of the award, and

(c) in the case of an award by a court in a country outside the United Kingdom, it is exempt from any charge to tax in that place.

(2) No liability to income tax arises in respect of interest if—

(a) it is included in a payment in satisfaction of a cause of action (including a payment into court), and

(b) it would fall within subsection (1) if it were included in a sum awarded by a court in respect of a cause of action.

(3) In subsection (1)—

• “damages” in Scotland includes solatium, and

• “personal injury” includes disease and impairment of physical or mental condition.

752 Interest under employees' share schemes U.K.

(1) This section applies if—

(a) a scheme is set up to comply with section [F6 682(2)(b) of the Companies Act 2006 (c. 46)] (financial assistance for the purposes of an employees' share scheme), and

(b) under the scheme the trustees receive interest from a participant in the scheme.

(2) So far as the scheme requires the trustees to pay to the company an equivalent amount as interest, no liability to income tax arises under Chapter 2 of Part 4 for the trustees in respect of the interest they receive.

Textual Amendments

F6 Words in s. 752(1)(a) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), arts. 1(1), 12

753 Interest on repayment of student loan U.K.

(1) No liability to income tax arises in respect of interest if—

(a) it is paid to a person to whom a student loan has been made, and

(b) it relates to an amount repaid to the person after being recovered from the person in respect of the loan.

(2) In this section “student loan” means a loan made under—

• section 22 of the Teaching and Higher Education Act 1998 (c. 30),

• section 73(f) of the Education (Scotland) Act 1980 (c. 44), or

• Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 (S.I. 1998/1760 (N.I. 14)).

[F7 753A Interest on unpaid relevant contributions U.K.

(1) No liability to income tax arises in respect of interest paid in compliance with a requirement in a compliance notice or an unpaid contributions notice to pay interest in respect of unpaid relevant contributions.

(2) In this section—

• “compliance notice” means a notice under section 35 of the Pensions Act;

• “the Pensions Act” means the Pensions Act 2008 or the Pensions (No.2) Act (Northern Ireland) 2008;

• “unpaid contributions notice” means a notice under section 37 of the Pensions Act;

• “unpaid relevant contributions” has the same meaning as in section 38(2)(a) of the Pensions Act.]

Textual Amendments

F7 S. 753A inserted (19.7.2011) by Finance Act 2011 (c. 11), s. 69(3)

754 Redemption of funding bonds U.K.

(1) The redemption of funding bonds is not treated as the payment of interest on a debt for income tax purposes if their issue was treated under section 380 of this Act or [F8 section 413 of CTA 2009] as the payment of interest on the debt.

(2) In this section “funding bonds” includes any bonds, stocks, shares, securities or certificates of indebtedness.

Textual Amendments

F8 Words in s. 754(1) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 636 (with Sch. 2 Pts. 1, 2)

755 Interest on foreign currency securities etc. owned by non-UK residents U.K.

(1) This section applies to interest on—

(a) such foreign currency securities issued by a local authority or a statutory corporation as the Treasury direct, and

(b) such foreign currency loans made to a statutory corporation as the Treasury direct.

(2) No liability to income tax arises in respect of interest to which this section applies if—

(a) in the case of interest on a security, its beneficial owner is a non-UK resident, and

(b) in the case of interest on a loan, the person for the time being entitled to repayment or eventual repayment is a non-UK resident.

(3) But interest is not exempt under subsection (2) because a person is a non-UK resident if it is treated as another person's income under—

• Chapter 5 of Part 5 (settlements: amounts treated as income of settlor), or

• [F9 Chapter 2 of Part 13 of ITA 2007] (anti-avoidance provisions: transfer of assets abroad).

(4) In this section—

• “company” means a company, as defined in section [F10 1(1)] of the Companies Act [F11 2006 (c. 46)] F12 ...,

• “foreign currency”, in relation to loans and securities, has the meaning given by section 756, and

• “statutory corporation” means—

  (a)

  a corporation incorporated by an Act (other than a company), or

  (b)

  any other corporation on which functions connected with carrying on an undertaking are conferred by an Act or by an order made under or confirmed by an Act.

Textual Amendments

F9 Words in s. 755(3) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 574 (with transitional provisions and savings in Sch. 2)

F10 Word in s. 755(4) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), arts. 1(1), 3(6)

F11 Words in s. 755(4) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), arts. 1(1), 3(6)

F12 Words in s. 755(4) omitted (1.10.2009) by virtue of The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2009 (S.I. 2009/1890), arts. 1(1), 3(6)

756 Which securities and loans are foreign currency ones for section 755 U.K.

(1) For the purposes of section 755, a security or loan is a foreign currency one if under its terms the currency to be used for repayment is not sterling.

(2) Subsection (1) is subject to the following qualifications.

(3) A security issued before 6th April 1982 is a foreign currency one if under its terms the currency to be used for repayment is not that of a country specified in Schedule 1 to the Exchange Control Act 1947 (c. 14) at the time of the issue of the security.

(4) A loan made before that date is a foreign currency one if under its terms the currency to be used for repayment is not that of a country specified in that Schedule at the time the loan was made.

(5) If in the case of a security there is an option as to the currency to be used for repayment, the security is only to be treated as a foreign currency one if the option is exercisable only by its holder.

(6) If in the case of a loan there is an option as to the currency to be used for repayment, the loan is only to be treated as a foreign currency one if the option is exercisable only by the person for the time being entitled to repayment or eventual repayment.

[F13 756A Interest on certain deposits of victims of National-Socialist persecution U.K.

(1) No liability to income tax arises in respect of interest which is paid—

(a) to or in respect of a victim of National-Socialist persecution,

(b) under a qualifying compensation scheme, and

(c) for a qualifying purpose in respect of a qualifying deposit of the victim.

(2) A scheme is a qualifying compensation scheme if—

(a) it is constituted (whether under the law of any part of the United Kingdom or elsewhere) by an instrument in writing, and

(b) the purpose of the scheme, or one of its purposes, is to make payments of interest to or in respect of victims of National-Socialist persecution for qualifying purposes in respect of qualifying deposits.

(3) Interest is paid for a qualifying purpose in respect of a deposit if—

(a) it is paid for meeting a liability in respect of interest on the deposit, or

(b) it is paid for compensating for the effects of inflation on the deposit.

(4) In relation to a victim of National-Socialist persecution, a deposit is a qualifying deposit if it was made—

(a) by, or on behalf of, the victim, and

(b) on or before 5th June 1945.

(5) In this section “deposit” has the [F14 same meaning as in Chapter 19 of Part 15 of ITA 2007 (see section 983 of that Act)]]

Textual Amendments

F13 S. 756A inserted (with effect as mentioned in s. 64(7) of the amending Act) by Finance Act 2006 (c. 25), s. 64(2) (with s. 64(9)-(12))

F14 Words in s. 756A(5) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 575 (with transitional provisions and savings in Sch. 2)

F15 ... U.K.

Textual Amendments

F15 Ss. 757-767 and cross-heading repealed (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2021 (c. 26), s. 34(1)(a)

F15 757 Interest and royalty payments: introduction U.K.

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F15 758 Exemption for certain interest and royalty payments U.K.

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F15 759 The person making the payment U.K.

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F15 760 The person beneficially entitled to the payment U.K.

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F15 761 Meaning of “25% associates” U.K.

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F15 762 Interest payments: exemption notices U.K.

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F15 763 Special relationships U.K.

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F15 764 Application of ICTA provisions about special relationships U.K.

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F15 765 Anti-avoidance U.K.

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F15 766 Interest and royalty payments: interpretation U.K.

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F15 767 Power to amend references to the Directive by order U.K.

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Income from commercial occupation of woodlands U.K.

768 Commercial occupation of woodlands U.K.

(1) No liability to income tax arises under Chapter 8 of Part 5 (income not otherwise charged) in respect of income arising from the commercial occupation of woodlands in the United Kingdom.

(2) For this purpose the occupation of woodlands is commercial if the woodlands are managed—

(a) on a commercial basis, and

(b) with a view to the realisation of profits.

Housing grants U.K.

769 Housing grants U.K.

(1) No liability to income tax arises in respect of a payment if it is made—

(a) under an enactment relating to the giving of financial assistance for the provision, maintenance or improvement of housing accommodation or other residential accommodation, and

(b) by way of grant or other contribution towards expenses.

(2) It does not matter whether—

(a) the payment is made to the person who incurs the expenses, or

(b) the expenses have been, or are to be, incurred.

(3) Subsection (1) does not apply so far as the payment is made towards an expense which is deductible in calculating income for any income or corporation tax purpose.

[F16 Schedule 2] share incentive plan distributions U.K.

Textual Amendments

F16 Words in s. 770 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 66, 89 (with Sch. 8 paras. 90-96)

770 Amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment U.K.

(1) This section applies if—

(a) shares are awarded to a participant under [F17 a Schedule 2] share incentive plan, and

(b) the condition in section 392(3) or (5) is met at the time the shares in question are so awarded (earnings within ITEPA 2003).

This is subject to subsection (4).

(2) No liability to income tax arises for the participant in respect of—

(a) the amount applied by the trustees in acquiring dividend shares on behalf of the participant, or

(b) any amount retained under paragraph 68(2) of Schedule 2 to ITEPA 2003 (amount of cash dividend not reinvested).

(3) Subsection (2) does not affect any liability arising as a result of—

(a) the retained amount later being paid out (see sections 393 and 406), or

(b) the dividend shares ceasing to be subject to the plan (see sections 394 and 407).

(4) This section does not apply if the main purpose or one of the main purposes of the arrangements under which the shares are awarded or acquired is the avoidance of tax or national insurance contributions.

(5) This section forms part of the SIP code (see section 488 of ITEPA 2003: F18 ... share incentive plans).

(6) Accordingly, expressions used in this section and contained in the index in paragraph 100 of Schedule 2 to that Act (F18 ... share incentive plans) have the meaning indicated by that index.

(7) In particular—

(a) for the meaning of “dividend shares” see paragraph 62(3)(b) of that Schedule,

(b) for the meaning of “participant” see paragraph 5(4) of that Schedule, and

(c) for the meaning of “the trustees” see paragraphs 2(2) and 71(1) of that Schedule.

Textual Amendments

F17 Words in s. 770(1)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 67(2), 89 (with Sch. 8 paras. 90-96)

F18 Word in s. 770(5)(6) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 67(3), 89 (with Sch. 8 paras. 90-96)

Foreign income of consular officers and employees U.K.

771 Relevant foreign income of consular officers and employees U.K.

(1) No liability to income tax arises in respect of relevant foreign income of a consular officer or employee in the United Kingdom for a foreign state if—

(a) Her Majesty by Order in Council directs that this section applies to the foreign state for the purpose of giving effect to a reciprocal arrangement with that state, and

(b) the officer or employee meets conditions A to C.

(2) Condition A is that the officer or employee is not—

(a) a British citizen,

(b) a British overseas territories citizen,

(c) a British National (Overseas), or

(d) a British Overseas citizen.

(3) Condition B is that the officer or employee is not engaged in any trade, profession, vocation or employment in the United Kingdom, otherwise than as a consular officer or employee of the state in question.

[F19 (4) Condition C is that—

(a) the officer or employee is a permanent employee of that state, or

(b) the officer or employee was non-UK resident for each of the 2 tax years preceding the tax year in which the officer or employee became a consular officer or employee in the United Kingdom of that state.]

(5) In this section and section 772—

• “consular officer or employee” includes any person employed for the purposes of the official business of a consular officer at—

  (a)

  any consulate,

  (b)

  any consular establishment, or

  (c)

  any other premises used for those purposes, and

• “reciprocal arrangement” means a consular convention or other arrangement with a foreign state, making similar provision to that made by this section and sections 302, 646A and 681A of ITEPA 2003 in the case of Her Majesty's consular officers or employees in that state.

Textual Amendments

F19 S. 771(4) substituted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 53(1) (with Sch. 46 para. 53(2))

772 Further provisions about Orders under section 771 U.K.

(1) An Order in Council under section 771 may limit the operation of that section in relation to a state in any way appearing to Her Majesty appropriate having regard to the reciprocal arrangement with the state.

(2) An Order under that section may be made so as to have effect from a date earlier than that on which it is made, but not earlier than the reciprocal arrangement in question comes into force.

(3) An Order under that section may contain such transitional provisions as appear to Her Majesty appropriate.

(4) A statutory instrument containing an Order under that section is subject to annulment in pursuance of a resolution of the House of Commons.

Income of non-UK residents from certain securities U.K.

773 Income from Inter-American Development Bank securities U.K.

(1) No liability to income tax arises for a non-UK resident in respect of income from a security issued by the Inter-American Development Bank if the liability only arises because one or more of circumstances A to C apply.

(2) Circumstance A is that the security is issued in the United Kingdom or in sterling.

(3) Circumstance B is that the income is made payable or paid in the United Kingdom or in sterling.

(4) Circumstance C is that the Bank maintains an office or other place of business in the United Kingdom.

774 Income from securities issued by designated international organisations U.K.

(1) No liability to income tax arises for a non-UK resident in respect of income from a security issued by an organisation if—

(a) the organisation has been designated by the Treasury for the purposes of this section, and

(b) the liability only arises because one or more of circumstances A to C apply.

(2) Circumstance A is that the security is issued in the United Kingdom or in sterling.

(3) Circumstance B is that the income is made payable or paid in the United Kingdom or in sterling.

(4) Circumstance C is that the organisation maintains an office or other place of business in the United Kingdom.

(5) The Treasury may by order designate for the purposes of this section—

(a) any of the [F20 Communities] [F20 European Union] ,

(b) the European Investment Bank,

(c) any international organisation that meets conditions A and B.

(6) Condition A is that one of its members is the United Kingdom or any of the [F20 Communities] [F20 European Union] .

(7) Condition B is that the agreement under which that member became a member provides for the same kind of exemption from tax for income from securities issued by the organisation as this section provides.

Textual Amendments

F20 Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))

Other U.K.

775 Income towards reducing the national debt U.K.

(1) This section applies if property is held on trust in accordance with directions which are valid and effective under section 9 of the Superannuation and other Trust Funds (Validation) Act 1927 (c. 41) (validation of trust funds for the reduction of the national debt).

(2) No liability to income tax arises in respect of any of the following—

(a) income arising from the property,

(b) income arising from the accumulation of that income, and

(c) profits of any description otherwise accruing to the property and liable to be accumulated under the trust.

[F21 775A Government bonus for savings account or other investment plan U.K.

No liability to income tax arises in respect of a payment of, or in respect of, a government bonus under section 1 or 2 of the Savings (Government Contributions) Act 2017.]

Textual Amendments

F21 S. 775A inserted (17.1.2017) by Savings (Government Contributions) Act 2017 (c. 2), ss. 3(1), 6(2)(3)

776 Scholarship income U.K.

(1) No liability to income tax arises in respect of income from a scholarship held by an individual in full-time education at a university, college, school or other educational establishment.

(2) This exemption is subject to section 215 of ITEPA 2003 (under which only the scholarship holder is entitled to the exemption if the scholarship is provided by reason of another person's employment).

[F22 (2A) No liability to income tax arises in respect of income from a payment made under section 23C(5A) of the Children Act 1989 (duty to make payments to former relevant children who pursue higher education)] [F23 or under sections 110(6) or 112(2) of the Social Services and Well-being (Wales) Act 2014 (duty to make payments to certain young people who pursue higher education)].

(3) In this section “scholarship” includes a bursary, exhibition or other similar educational endowment.

Textual Amendments

F22 S. 776(2A) inserted (E.W.) (22.8.2009 for E., 18.3.2011 for W.) by Children and Young Persons Act 2008 (c. 23), ss. 21(4), 44(4); S.I. 2009/2273, art. 2(1); S.I. 2011/824, art. 2(a)

F23 Words in s. 776(2A) inserted (E.W.) (6.4.2016) by The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016 (S.I. 2016/413), regs. 2(1), 224

[F24 776A Payments under Jobs Growth Wales Plus U.K.

(1) No liability to income tax arises in respect of a payment that is made—

(a) by way of training allowance under the Jobs Growth Wales Plus scheme, and

(b) to a person as a participant in that scheme.

(2) For this purpose the “Jobs Growth Wales Plus scheme” means the scheme under section 14 of the Education Act 2002 known as Jobs Growth Wales Plus.]

Textual Amendments

F24 S. 776A inserted (with effect in accordance with s. 26(2) of the amending Act) by Finance (No. 2) Act 2023 (c. 30), s. 26(1)

F25 777 VAT repayment supplements U.K.

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Textual Amendments

F25 S. 777 omitted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by virtue of The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 4(3)

778 Incentives to use electronic communications U.K.

No liability to income tax arises in respect of anything received by way of incentive under any regulations made in accordance with Schedule 38 to FA 2000 (regulations for providing incentives for electronic communications).

779 Gains on commodity and financial futures U.K.

(1) No liability to income tax arises as a result of Chapter 8 of Part 5 (income not otherwise charged) in respect of a gain arising to a person in the course of dealing in—

(a) commodity or financial futures,

(b) traded options, or

(c) financial options.

(2) The reference in subsection (1) to a gain arising in the course of dealing in commodity or financial futures includes a gain regarded as so arising under section 143(3) of TCGA 1992 (gains arising from transactions otherwise than in the course of dealing on a recognised futures exchange, involving authorised persons).

(3) In this section—

• “commodity or financial futures” means commodity futures or financial futures that are for the time being dealt in on a recognised futures exchange,

• “financial option” has the meaning given by section 144(8)(c) of TCGA 1992, and

• “traded option” has the meaning given by section 144(8)(b) of that Act.

780 Disabled person's vehicle maintenance grant U.K.

(1) No liability to income tax arises in respect of a disabled person's vehicle maintenance grant.

(2) For this purpose a “disabled person's vehicle maintenance grant” means a grant to any person owning a vehicle that is made under—

[F26 (a) paragraph 10 of Schedule 1 to the National Health Service Act 2006 or paragraph 10 of Schedule 1 to National Health Service (Wales) Act 2006]

(b) section 46(3) of the National Health Service (Scotland) Act 1978 (c. 29), or

(c) Article 30 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14)).

Textual Amendments

F26 Words in s, 780(2)(a) substituted (1.3.2007) by National Health Service (Consequential Provisions) Act 2006 (c. 43), ss. 2, 8(2), Sch. 1 para. 276 (with Sch. 3 Pt. 1)

781 Payments under New Deal 50plus U.K.

(1) No liability to income tax arises in respect of a payment that is made—

(a) by way of training grant under the “New Deal 50plus” scheme, and

(b) to a person as a participant in that scheme.

(2) For this purpose the “New Deal 50plus” scheme means —

(a) the scheme under section 2(2) of the Employment and Training Act 1973 (c. 50) known as “New Deal 50plus”, or

(b) the corresponding scheme under section 1 of the Employment and Training Act (Northern Ireland) 1950 (c. 29 (N.I.)).

782 Payments under employment zone programme U.K.

(1) No liability to income tax arises in respect of a payment that is made to a person as a participant in an employment zone programme.

(2) For this purpose an “employment zone programme” means an employment zone programme established for an area or areas designated under section 60 of the Welfare Reform and Pensions Act 1999 (c. 30).

782A Domestic microgeneration U.K.

(1) No liability to income tax arises in respect of income arising to an individual from the sale of electricity generated by a microgeneration system if—

(a) the system is installed at or near domestic premises occupied by the individual, and

(b) the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.

(2) In subsection (1)—

• “domestic premises” means premises used wholly or mainly as a separate private dwelling, and

• [F27 “microgeneration system” has the same meaning as in section 263AZA of the Taxation of Chargeable Gains Act 1992.]

Textual Amendments

F27 Words in s. 782A(2) substituted (26.5.2015) by Deregulation Act 2015 (c. 20), ss. 57(3)(b), 115(3)(e)

[F28 782B Renewables obligation certificates for domestic microgeneration U.K.

(1) No liability to income tax arises in respect of the receipt by an individual of a renewables obligation certificate if—

(a) the individual receives the certificate in connection with the generation of electricity by a microgeneration system,

(b) the system is installed at or near domestic premises occupied by the individual, and

(c) the individual intends that the amount of electricity generated by it will not significantly exceed the amount of electricity consumed in those premises.

(2) In subsection (1)—

• “domestic premises” and “microgeneration system” have the same meaning as in section 782A, and

• “renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.]

Textual Amendments

F28 S. 782B inserted (19.7.2007 with effect as stated in s. 21(3) of the amending Act) by Finance Act 2007 (c. 11), s. 21(1)

[F29 782C Volunteers etc: compensation for lost employment income U.K.

(1) No liability to income tax arises in respect of a payment by a relevant authority to a person if—

(a) the person performs services for the authority for no financial benefit in a period in which he or she is also employed,

(b) the payment is made solely to compensate the person for lost employment income for the period (and accordingly does not exceed the amount of that income), and

(c) the person does not perform the services as the holder of an office with the authority (as to which, see section 299A of ITEPA 2003).

(2) For the purposes of subsection (1) a person performs services for no financial benefit if, at the time the payment referred to in that subsection is made, the person—

(a) is not entitled to any payment or benefit in connection with performing the services,

(b) has not received any such payment or benefit, and

(c) does not expect to receive any such payment or benefit.

(3) For the purposes of subsection (2)(a), (b) and (c) disregard—

(a) a payment in respect of reasonable expenses incurred in performing the services,

(b) a payment compensating the person for loss of social security income arising as a result of performing the services, and

(c) a payment to which subsection (1) applies.

(4) In subsection (1)(b) “lost employment income” means the difference between—

(a) the amount of employment income, after deduction of tax and national insurance contributions, that the person would have received from the employment for the period if he or she had not performed the services, and

(b) the amount of employment income, after deduction of tax and national insurance contributions, that the person did receive from the employment for the period.

(5) In this section—

• “employment” has the meaning given by section 4 of ITEPA 2003;

• “relevant authority” has the meaning given by section 299A of ITEPA 2003;

• “services” includes services as a juror;

• “social security income” has the meaning given by section 657 of ITEPA 2003.]

Textual Amendments

F29 S. 782C inserted (6.4.2018) by The Enactment of Extra-Statutory Concessions Order 2018 (S.I. 2018/282), arts. 1, 3(4)