Part 1
17.Part 1 makes amendments to ITEPA 2003 including those that are consequential to the repeal of Chapter 11.
18.Paragraph 1 introduces the changes.
19.Paragraphs 2 to 4 makes changes to Sections 7, 17 and 30 of ITEPA 2003 to remove references to Chapter 11 which is repealed and replaces them instead with references to Chapter 10.
20.Paragraph 5 makes changes to Section 63 ITEPA 2003 to remove references to Chapter 11 terms that are no longer relevant and subsections that are no longer relevant following the repeal of Chapter 11.
21.Paragraph 6 inserts a new definition to Section 66 ITEPA 2003 (meaning of ‘employment’ and related expressions) at subsection (5) saying that the meaning of ‘lower paid employment as a minister of religion’ has the same meaning as in new Section 290D.
22.Paragraphs 7 & 8 makes changes to Sections 148 and 157 ITEPA 2003 so that where a car, or a van is shared between two employees and one is in lower paid employment as a minister of religion, and one is not, the van will be treated in the same way as if it were shared between two employees, neither of whom are lower paid ministers of religion.
23.Paragraphs 9 & 10 makes changes to Section 169 and 169A ITEPA 2003 to change references from excluded employment to lower paid ministers of religion and removes the qualifying provisions where the car or van is shared with a family member who is a lower paid minister of religion.
24.Paragraph 11 makes changes to Section 184 ITEPA 2003 to remove the reference to Chapter 11 and substitutes instead the individual Chapters 3, 6 & 10 to which this section applies.
25.Paragraphs 12 to 18 make changes to Sections 188, 239, 266, 267 and 290 ITEPA 2003 to remove references to Chapter 11 and excluded employment, terms that are no longer relevant and substitutes ‘lower paid employment as a minister of religion’ so these exemptions will continue to apply in the same way to lower paid ministers of religion.
26.Paragraph 13 makes changes to Section 228 ITEPA 2003 and inserts references to Sections 290C to 290G (provisions of the benefits code not applicable to lower-paid ministers of religion).
27.Paragraph 14 subparagraph (3) makes changes to Section 239(9) ITEPA 2003 to remove references to Chapter 11 terms, and replaces the current text with references to ‘In this part ‘lower paid employment as a minister of religion’ has the meaning given by Section 290D’.
28.Paragraphs 19 & 20 make changes to Section 290A and 290B ITEPA 2003 replacing the words ‘religious denomination’ with ‘religion’, removing the definition of ‘lower paid employment’ from Section 290A(3), changing the wording in Section 290B(3) so that it now reads as ‘accommodation outgoings’ has the same meaning as in Section 290A’, and inserting ‘lower paid’ before ministers of religion in the title of both sections.
29.Paragraph 21 makes changes to Part 2 of Schedule 1 ITEPA 2003 to remove references to lower paid employment and excluded employment, consequential to the repeal of Chapter 11 and introduces references to ‘lower paid ministers of religion (in the benefits code)’ and ‘lower paid ministers of religion in Part 4’ in the appropriate places in the Schedule.
30.Paragraph 22 makes changes to paragraph 17 of Schedule 7 ITEPA 2003 to change references from lower paid employments to Chapter 3, 6, 7 and 10 of the benefits code such that the transitional arrangements are maintained and omits subparagraph 4 referring to Chapter 11 of Part 3. It also makes changes to paragraph 27(3) of Schedule 7 ITEPA 2003 replacing the words ‘not an excluded employment’ with ‘not lower paid employment as a minster of religion’, and ‘excluded employment’ with ‘lower paid employment as a minster of religion’.
31.Paragraph 23 subparagraph (1) introduces the amendments to the Social Security Contributions and Benefits Act 1992 (SSCBA 1992).
32.Paragraph 23 subparagraph (2) removes the reference to employees in an excluded employment at subsection 10(1)(b)(ii) of the SSCBA 1992 and substitutes ‘lower paid employment as a minister of religion’. Section 10 SSCBA 1992 determines whether Class 1A National Insurance contributions (NICs) are payable in respect of a BiK. This amendment ensures that no Class 1A NICs liability arises in respect of lower paid ministers of religion.
33.Paragraph 23 subparagraph (3) similarly amends section 10ZB of the SSCBA 1992
34.Paragraph 23 subparagraph (4) amends section 122 of the SSCBA 1992 to remove references to chapter 11 terms that are no longer relevant, and inserts an interpretation of ‘lower paid employment as a minister of religion’, stating that it has the meaning given by Section 290D of ITEPA.
35.Paragraph 24 subparagraph (1) introduces the amendments to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (SSCBA (NI) 1992).
36.Paragraph 24 subparagraph (2) removes the reference to employees in an excluded employment at subsection 10(1)(b)(ii) of the SSCBA (NI) 1992 and substitutes ‘lower paid employment as a minister of religion’. Section 10 SSCBA (NI) 1992 determines whether a Class 1A contribution is payable in respect of a BiK. This amendment ensures that no class 1A liability arises in respect of lower paid ministers of religion.
37.Paragraph 24 subparagraph (3) similarly amends section 10ZB of the SSCBA (NI) 1992
38.Paragraph 24 subparagraph (4) amends section 121 of the SSCBA (NI) 1992 to remove references to chapter 11 terms that are no longer relevant, and inserts an interpretation of ‘lower paid employment as a minister of religion’ stating that it has the meaning given by Section 290D of ITEPA.
39.Paragraph 25 makes changes to section 173 of the Finance Act 2004. It removes references to ‘excluded employments’, a term which, following the repeal of Chapter 11 is no longer relevant in determining whether a registered pension scheme has made an unauthorised payment, if an asset held for the purposes of the pension scheme is used to provide a benefit. Instead these references are replaced with ‘lower paid employment as a minister of religion’, and in subsection 10 replaces the definition of ‘excluded employment’ with ‘lower paid employment as a minister of religion’ further providing that the meaning of ‘lower paid employment as a minister of religion’ is that within given by section 290D ITEPA 2003. This means that the position with regard to registered pension schemes remains the same for lower paid ministers of religion.
40.Paragraph 26 amends Section 1065 of the Corporation Tax Act 2010 by removing the reference to section 216 ITEPA 2003 and ‘lower paid employment’ and substitutes ‘in section 290C of that Act (provisions not applicable to lower paid ministers of religion).
