The Income Tax (Exemption of Minor Benefits) (Amendment) Regulations 2003

Statutory Instruments

2003 No. 1434

INCOME TAX

The Income Tax (Exemption of Minor Benefits) (Amendment) Regulations 2003

Made

3rd June 2003

Laid before the House of Commons

4th June 2003

Coming into force

25th June 2003

The Treasury, in exercise of the powers conferred upon them by section 210 of the Income Tax (Earnings and Pensions) Act 2003(1), hereby make the following Regulations:

Citation, commencement, effect and interpretation

1.—(1) These Regulations may be cited as the Income Tax (Exemption of Minor Benefits) (Amendment) Regulations 2003 and shall come into force on 25th June 2003.

(2) In these Regulations “the principal Regulations” means the Income Tax (Exemption of Minor Benefits) Regulations 2002(2) and a reference to a numbered regulation is a reference to the regulation in the principal Regulations bearing that number.

Amendment of the principal Regulations

2.—(1) Amend regulation 2 (interpretation) as follows.

(2) In the definition of ““bus” and “minibus”” for “section 197AA of the Taxes Act” substitute “section 242 of ITEPA”.

(3) After the definition of “employment” insert—

““ITEPA” means the Income Tax (Earnings and Pensions) Act 2003;”.

(4) Omit the definition of “the Taxes Act”.

3.—(1) Amend regulation 3 as follows.

(2) For paragraph (1) substitute—

“(1) There is no charge to tax under Chapter 10 of Part 3 of ITEPA in respect of the provision for employees of qualifying meals.”.

(3) Omit paragraph (2).

4.  In regulation 4(1) for “section 154 of the Taxes Act (taxable benefits: general charging provision)” substitute “Chapter 10 of Part 3 of ITEPA”.

Jim Fitzpatrick

Nick Ainger

Two of the Lords Commissioners of Her Majesty’s Treasury

3rd June 2003

Explanatory Note

(This note is not part of the Regulations)

Chapter 10 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1: “ITEPA”) provides that employment-related benefits given by an employer are chargeable to income tax. Section 210 of ITEPA provides that the Treasury may exempt minor benefits from the application of that Chapter by regulations.

These Regulations amend the Income Tax (Exemption of Minor Benefits) Regulations 2002 (S.I. 2002/205) to remove the limit on the number of qualifying meals that an employer can provide to such employees in any one year. They also make amendments consequential upon the re-enactment of section 154 of the Income and Corporation Taxes Act 1988 (c. 1) by ITEPA.

(1)

2003 c. 1.

(2)

S.I. 2002/205.