3 Exemption from income tax etc
1 Income to which regulation 4, 6, 7 or 8 applies—
(a) shall not be taxable earnings or taxable specific income as defined by section 10 of ITEPA 2003 (meaning of “taxable earnings” and “taxable specific income”);
Section 10(2) was amended by paragraphs 2, 4(1) and 4(2) of Part 1 of Schedule 7 to the Finance Act 2008 (c. 9). Section 10(4) was inserted by paragraphs 2, 4(1) and 4(3) of Part 1 of Schedule 7 to the Finance Act 2008.
(b) shall be exempt from income tax that would otherwise be chargeable on that income under—
(i) section 5 (charge to tax on trade profits), section 229 (adjustment income: income charged) and section 242 (charge to tax on post cessation receipts) of ITTOIA 2005;
(ii) section 683 of ITTOIA 2005 (annual payments); or
(iii) section 687 of ITTOIA 2005 (income not otherwise charged).
2 A payment or transfer to which regulation 4, 6 or 7 applies is exempt from income tax that would otherwise be chargeable on that payment or transfer by virtue of section 13 of ITTOIA 2005 (visiting performers).
3 Sections 900 and 901 (duty to deduct from annual payments) and section 966 (duty to deduct and account for sums representing income tax) of ITA 2007 do not apply to income, a payment or transfer to which regulation 4, 6, 7 or 8 applies.
Section 901(4) was amended by paragraphs 1 and 29 of Part 1 of Schedule 1 to the Finance Act 2008 (c. 9).
4 This regulation is subject to regulations 9 and 11.