The Taxation of Benefits under Government Pilot Schemes (Working Neighbourhoods Pilot and In Work Credit) Order 2004

Statutory Instruments

2004 No. 575

INCOME TAX

The Taxation of Benefits under Government Pilot Schemes (Working Neighbourhoods Pilot and In Work Credit) Order 2004

Made

4th March 2004

Laid before the House of Commons

5th March 2004

Coming into force

6th April 2004

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

Citation and commencement

1.—(1) This Order may be cited as the Taxation of Benefits under Government Pilot Schemes (Working Neighbourhoods Pilot and In Work Credit) Order 2004.

(2) This Order shall come into force on 6th April 2004.

Interpretation

2.  In this Order—

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

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

“In-Work Credit” and “Working Neighbourhoods Pilot” mean benefits under the Government pilot schemes known by those names.

Exemptions from income tax

3.  The Income Tax Acts shall have effect in relation to any amount of payment by way of In-Work Credit or by way of the Working Neighbourhoods Pilot, 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.

Nick Ainger

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

4th March 2004

Explanatory Note

(This note is not part of the Order)

This Order provides for payments of benefits, made under the Government pilot schemes known as In-Work Credit and Working Neighbourhoods Pilot, 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.