Finance Act 2004

Gains and losses of a company from intangible fixed assets: delayed payment of remuneration

8 (1) In Schedule 29 to the Finance Act 2002 (c. 23) (gains and losses of a company from intangible fixed assets), paragraph 113 (delayed payments of emolument) is amended as follows.

(2) In the heading, for “emoluments” substitute “employees' remuneration”.

(3) In sub-paragraph (1)—

(a) in paragraph (a), for “emoluments” substitute “employees' remuneration”,

(b) in paragraph (b), for “emoluments are” substitute “remuneration is”, and

(c) for “emoluments shall” substitute “remuneration shall”.

(4) For sub-paragraph (2) substitute—

“(2) Sub-paragraph (1) applies whether the amount is in respect of particular employments or in respect of employments generally.”.

(5) For sub-paragraph (3) substitute—

“(3) This paragraph applies to potential employees' remuneration as it applies to employees' remuneration.

For this purpose—

(a) potential employees' remuneration is an amount reserved in the accounts of an employer, with a view to it becoming employees' remuneration, and

(b) potential employees' remuneration is regarded as paid when it becomes employees' remuneration that is paid.”.

(6) In sub-paragraph (5)—

(a) for “emoluments have not” substitute “employees' remuneration has not”,

(b) in paragraph (a), for “they” substitute “it”, and

(c) in paragraph (b), for “emoluments are” substitute “remuneration is”.

(7) After that sub-paragraph insert—

“(6) For the purposes of this section remuneration is paid when it—

(a) is treated as received by an employee for the purposes of the Income Tax (Earnings and Pensions) Act 2003 by section 18, 19, 31 or 32 of that Act (receipt of money and non-money earnings), or

(b) would be so treated if it were not exempt income.

(7) In this paragraph—

• “employee” includes an office-holder and “employment” correspondingly includes an office, and

• “remuneration” means an amount which is or is treated as earnings for the purposes of the Income Tax (Earnings and Pensions) Act 2003.”.

(8) These amendments have effect for accounting periods ending after 5th April 2003.