http://www.legislation.gov.uk/ukpga/2005/7/part/2/chapter/2Finance Act 2005An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.texttext/xmlenStatute Law Database2025-05-29Expert Participation2025-03-21 Part 2Chapter 2151Section 270A of ITEPA 2003 (limited exemption for qualifying childcare vouchers) is amended as follows.2In subsection (6) (exempt amount), for “£50 for each qualifying week in that year” substitutethe sum of— a£50 for each qualifying week in that year, andbthe voucher administration costs for that year.3After that subsection insert—6AThe “voucher administration costs” for any tax year in respect of which qualifying childcare vouchers are provided for an employee means the difference between the cost of provision of the vouchers and their face value.The face value of a voucher is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.4After subsection (10) insert—10AIn this section “ cost of provision”, in relation to a childcare voucher, has the meaning given in section 87(3) and (3A).5This section has effect for the year 2005-06 and subsequent years of assessment.161ITEPA 2003 is amended as follows.2In section 237(1) (exemption for provision of workplace parking), for “No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge)” substitute “ No liability to income tax arises ”.3In section 244(1) (exemption for provision of cycles and cyclist's safety equipment), for “No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge)” substitute “ No liability to income tax arises ”.4In section 270A(1) (limited exemption for qualifying childcare vouchers), for “employee, liability” substituteemployee— ano liability to income tax arises by virtue of section 62 (general definition of earnings), andbliability.5In section 318(1) (childcare: exemption for employer-provided care), for “No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge)” substitute “ No liability to income tax arises ”.6In section 318A(1) (childcare: limited exemption for other care), for “child, liability” substitutechild— ano liability to income tax arises by virtue of section 62 (general definition of earnings), andbliability.7This section has effect for the year 2005-06 and subsequent years of assessment.171Section 206 of ITEPA 2003 (cost of the benefit: transfer of used or depreciated asset) is amended as follows.2In subsection (3)(a), for “a car (within the meaning of Chapter 6)” substitute “ an excluded asset (see subsection (6)) ”.3After subsection (5) insert—6An excluded asset is—aa car (within the meaning of Chapter 6),bcomputer equipment that has previously been applied as mentioned in subsection (3)(b) in circumstances in which the conditions set out in section 320 were met, orca cycle or cyclist's safety equipment that has previously been so applied in circumstances in which the conditions set out in section 244 were met.4This section has effect for the year 2005-06 and subsequent years of assessment.181ITEPA 2003 is amended as follows.2In section 310 (counselling and other outplacement services) in subsection (4) (person to have been employed full-time in the employment which is ceasing for a specified period) omit “full-time”.3In section 311 (retraining courses) in subsection (3) (conditions to be satisfied in relation to the course)—aat the end of paragraph (b) insert “ and ”;bin paragraph (c) (course to last no more than one year) for “one year” substitute “ two years ”;comit paragraph (d) (employee to attend the course on a full-time or substantially full-time basis) and the word “and” before it.4In that section, in subsection (4)(c) (person to be employed full-time in the employment which is ceasing for a specified period) omit “full-time”.5This section has effect in relation to the year 2005-06 and subsequent years of assessment.191ITEPA 2003 is amended as follows.2In subsection (1) of section 393 as originally enacted (application of Chapter 2 of Part 6) after “non-approved retirement benefits scheme” insert “ other than a scheme established by an order under section 1(2) of the Armed Forces (Pensions and Compensation) Act 2004 (armed and reserve forces compensation schemes) ”.3In paragraph (a) of section 639 (exemption from income tax for pensions due to military service etc)—afor “the Department of Work and Pensions” substitute “ the Ministry of Defence ”;bfor “any Order in Council, Royal Warrant, order or scheme” substitute “ instrument specified in subsection (2), ”.4At the end of section 639 (which becomes subsection (1)) insert—2The instruments referred to in subsection (1)(a) are—Defence (Local Defence Volunteers) Regulations 1940 (S.R. & O. 1940/748),War Pensions (Coastguards) Scheme 1944 (S.R. & O. 1944/500),War Pensions (Naval Auxiliary Personnel) Scheme 1964 (S.I. 1964/1985),Pensions (Polish Forces) Scheme 1964 (S.I. 1964/2007),War Pensions (Mercantile Marine) Scheme 1964 (S.I. 1964/2058),Order by Her Majesty concerning pensions and other grants in respect of disablement or death due to service in the Home Guard (1964 Cmnd. 2563),Order by Her Majesty concerning pensions and other grants in respect of disablement or death due to service in the Home Guard after 27th April 1952 (1964 Cmnd. 2564),Order by Her Majesty concerning pensions and other grants in respect of disablement or death due to service in the Ulster Defence Regiment (1971 Cmnd. 4567),Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/686),Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883).3The Treasury may by order amend subsection (2)..5After section 640 insert—640ANo liability to income tax arises on a lump sum provided under a scheme established by the Armed Forces Early Departure Payments Scheme Order 2005 (S.I. 2005/437)..6In section 641 (exemption from income tax for armed forces disability pensions etc), after paragraph (g) of subsection (1) insert—ha benefit under a scheme established by an order under section 1(2) of the Armed Forces (Pensions and Compensation) Act 2004 payable to a person by reason of his illness or injury—iby way of a lump sum, oriifollowing the termination of the person's service in the armed forces or reserve forces..7The amendment made by subsection (2) has effect for the year 2005-06.8The amendments made by subsections (3) and (4) are deemed always to have had effect.9The amendments made by subsections (5) and (6) have effect for the year 2005-06 and subsequent years of assessment.