The Taxation of Benefits under Government Pilot Schemes (Return to Work Credit and Employment Retention and Advancement Schemes) Order 2003

Statutory Instruments

2003 No. 2339

INCOME TAX

The Taxation of Benefits under Government Pilot Schemes (Return to Work Credit and Employment Retention and Advancement Schemes) Order 2003

Made

10th September 2003

Laid before the House of Commons

10th September 2003

Coming into force

1st October 2003

The Treasury, in exercise of the powers conferred upon them by section 151(1)(a), (2), (5) and (7) of the Finance Act 1996(1), hereby make the following Order:

Citation and commencement

1.  This Order may be cited as the Taxation of Benefits under Government Pilot Schemes (Return to Work Credit and Employment Retention and Advancement Schemes) Order 2003 and shall come into force on 1st October 2003.

Interpretation

2.  In this Order—

“benefit” has the meaning given by subsection (6) of section 151 of the Finance Act 1996;

“Employment Retention and Advancement Scheme payment” means a payment of benefit under the Government pilot scheme known as the Employment Retention and Advancement Scheme;

“Government pilot scheme” has the meaning given by subsections (3) and (4) of section 151 of the Finance Act 1996; and

“Return to Work Credit payment” means a payment of benefit under the Government pilot scheme known as the Return to Work Credit Scheme.

Exemptions from income tax

3.  The Income Tax Acts shall have effect in relation to any amount of an Employment Retention and Advancement Scheme payment, and any amount of a Return to Work Credit Scheme payment, as if that amount were wholly exempt from income tax and accordingly to be disregarded in computing the amount of any receipts brought into account for income tax purposes.

John Heppell

Jim Murphy

Two of the Lords Commissioners of Her Majesty’s Treasury

10th September 2003

Explanatory Note

(This note is not part of the Order)

This Order provides for payments of benefit, made under the Government pilot schemes known as the Employment Retention and Advancement Scheme and the Return to Work Credit Scheme, to be treated as exempt from income tax, and accordingly to be disregarded in computing the amount of any receipts brought into account for income tax purposes.

(1)

1996 c. 8. There are amendments to section 151 which are not relevant for the purposes of this instrument.