Part IV Income Tax, Corporation Tax and Capital Gains Tax
Chapter VI Miscellaneous provisions
Taxation of benefits
151 Benefits under pilot schemes.
1
The Treasury may by order make provision for the Income Tax Acts to have effect in relation to any amount of benefit payable by virtue of a Government pilot scheme as if it was, as they think fit, either—
a
wholly or partly exempt from income tax and, accordingly, to be disregarded in computing the amount of any receipts brought into account for income tax purposes; or
b
to the extent specified in the order, to be brought into account for the purposes of income tax as income of a description so specified or as a receipt of a description so specified.
2
The Treasury may by order provide for any amount of benefit payable by virtue of a Government pilot scheme to be left out of account, to the extent specified in the order, in the determination for the purposes of F1section 532 of the Capital Allowances Act (exclusion of expenditure met by contributions) of how far any expenditure has been or is to be met directly or indirectly by the Crown or by an authority or person other than the person actually incurring it.
3
In this section “Government pilot scheme” means any arrangements (whether or not contained in a scheme) which—
a
are made, under any enactment or otherwise, by the Secretary of State or any Northern Ireland department;
b
make provision for or about the payment of amounts of benefit either—
i
for purposes that are similar to those for which any social security or comparable benefit is payable; or
ii
for purposes connected with the carrying out of any functions of the Secretary of State or any such department in relation to employment or training for employment;
c
are arrangements relating to a temporary experimental period; and
d
are made wholly or partly for the purpose of facilitating a decision as to whether, or to what extent, it is desirable for provision to be made on a permanent basis for or in relation to any benefit.
4
In subsection (3)(b) above the reference to making provision for or about the payment of amounts of benefit for purposes that are similar to those for which any social security or comparable benefit is payable shall include a reference to making provision by virtue of which there is a modification of the conditions of entitlement to, or the conditions for the payment of, an existing social security or comparable benefit.
5
An order under this section may—
a
make different provision for different cases, and
b
contain such incidental, supplemental, consequential and transitional provision (including provision modifying provision made by or under the Income Tax Acts) as the Treasury may think fit.
6
In this section “benefit” includes any allowance, grant or other amount the whole or any part of which is payable directly or indirectly out of public funds.
7
The power to make an order under this section—
a
shall be exercisable for the year 1996-97 and subsequent years of assessment; and
b
so far as exercisable for the year 1996-97, shall be exercisable in relation to benefits, allowances and other amounts paid at times on or after 6th April 1996 but before the making of the order.
8
The Treasury shall not make an order under this section containing any such provision as is mentioned in subsection (1)(b) above unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.