- Latest available (Revised)
- Point in Time (01/07/2013)
- Original (As enacted)
Point in time view as at 01/07/2013.
Income Tax (Earnings and Pensions) Act 2003, Chapter 2 is up to date with all changes known to be in force on or before 27 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
(1)In the employment income Parts “the benefits code” means—
this Chapter,
Chapter 3 (expenses payments),
Chapter 4 (vouchers and credit-tokens),
Chapter 5 (living accommodation),
Chapter 6 (cars, vans and related benefits),
Chapter 7 (loans),
F1...
F1...
Chapter 10 (residual liability to charge), and
Chapter 11 (exclusion of lower-paid employments from parts of benefits code).
(2)If an employment is an excluded employment, the general effect of section 216(1) (provisions not applicable to lower-paid employments) is that only the following Chapters apply to the employment—
this Chapter,
Chapter 4 (vouchers and credit-tokens),
Chapter 5 (living accommodation), and
Chapter 11 (exclusion of lower-paid employments from parts of benefits code).
(3)Section 216(5) and (6) explain and restrict the effect of section 216(1).
(4)In the benefits code “excluded employment” means an employment to which the exclusion in section 216(1) applies.
[F2(5)The benefits code has effect subject to section 554Z2(2).]
Textual Amendments
F1S. 63(1) entries repealed (with effect in accordance with Sch. 22 para. 20(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 20(1), Sch. 43 Pt. 3(4)
F2S. 63(5) inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 8
(1)This section applies if, apart from this section, the same benefit would give rise to two amounts (“A” and “B”)—
(a)A being an amount of earnings as defined in Chapter 1 of this Part, and
(b)B being an amount to be treated as earnings under the benefits code.
(2)In such a case—
(a)A constitutes earnings as defined in Chapter 1 of this Part, and
(b)the amount (if any) by which B exceeds A is to be treated as earnings under the benefits code.
(3)This section does not apply in connection with living accommodation to which Chapter 5 of this Part applies.
(4)In that case section 109 applies to determine the relationship between that Chapter and Chapter 1 of this Part.
F3(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3S. 64(5)(6) repealed (with effect in accordance with Sch. 22 para. 21(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 21(1), Sch. 43 Pt. 3(4)
(1)This section applies for the purposes of the listed provisions where a person (“P”) supplies [F4an officer of Revenue and Customs] with a statement of the cases and circumstances in which—
(a)payments of a particular character are made to or for any employees, or
(b)benefits or facilities of a particular kind are provided for any employees,
whether they are employees of P or some other person.
(2)The listed provisions” are the provisions listed in section 216(4) (provisions of the benefits code which do not apply to lower-paid employments).
(3)If [F4an officer of Revenue and Customs] [F5is] satisfied that no additional tax is payable by virtue of the listed provisions by reference to the payments, benefits or facilities mentioned in the statement, [F6the officer] must give P a dispensation under this section.
(4)A “dispensation” is a notice stating that [F4an officer of Revenue and Customs] [F7agrees] that no additional tax is payable by virtue of the listed provisions by reference to the payments, benefits or facilities mentioned in the statement supplied by P.
(5)If a dispensation is given under this section, nothing in the listed provisions applies to the payments, or the provision of the benefits or facilities, covered by the dispensation or otherwise has the effect of imposing any additional liability to tax in respect of them.
(6)If in their opinion there is reason to do so, [F4an officer of Revenue and Customs] may revoke a dispensation by giving a further notice to P.
(7)That notice may revoke the dispensation from—
(a)the date when the dispensation was given, or
(b)a later date specified in the notice.
(8)If the notice revokes the dispensation from the date when the dispensation was given—
(a)any liability to tax that would have arisen if the dispensation had never been given is to be treated as having arisen, and
(b)P and the employees in question must make all the returns which they would have had to make if the dispensation had never been given.
(9)If the notice revokes the dispensation from a later date—
(a)any liability to tax that would have arisen if the dispensation had ceased to have effect on that date is to be treated as having arisen, and
(b)P and the employees in question must make all the returns which they would have had to make if the dispensation had ceased to have effect on that date.
Textual Amendments
F4Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
F5Word in s. 65(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 106(a); S.I. 2005/1126, art. 2(2)(h)
F6Words in s. 65(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(b); S.I. 2005/1126, art. 2(2)(h)
F7Word in s. 65(4) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 106(b); S.I. 2005/1126, art. 2(2)(h)
(1)In the benefits code—
(a)“employment” means a taxable employment under Part 2, and
(b)“employed”, “employee” and “employer” have corresponding meanings.
(2)Where a Chapter of the benefits code applies in relation to an employee—
(a)references in that Chapter to “the employment” are to the employment of that employee, and
(b)references in that Chapter to “the employer” are to the employer in respect of that employment.
(3)For the purposes of the benefits code an employment is a “taxable employment under Part 2” in a tax year if the earnings from the employment for that year are (or would be if there were any) general earnings to which the charging provisions of Chapter 4 or 5 of Part 2 apply.
(4)In subsection (3)—
(a)the reference to an employment includes employment as a director of a company, and
(b)“earnings” means earnings as defined in Chapter 1 of this Part.
(1)In the benefits code “director” means—
(a)in relation to a company whose affairs are managed by a board of directors or similar body, a member of that body,
(b)in relation to a company whose affairs are managed by a single director or similar person, that director or person, and
(c)in relation to a company whose affairs are managed by the members themselves, a member of the company,
and includes any person in accordance with whose directions or instructions the directors of the company (as defined above) are accustomed to act.
(2)For the purposes of subsection (1) a person is not to be regarded as a person in accordance with whose directions or instructions the directors of the company are accustomed to act merely because the directors act on advice given by that person in a professional capacity.
(3)In the benefits code “full-time working director” means a director who is required to devote substantially the whole of his time to the service of the company in a managerial or technical capacity.
(1)For the purposes of the benefits code a person has a material interest in a company if condition A or B is met.
(2)Condition A is that the person (with or without one or more associates) or any associate of that person (with or without one or more [F8other such associates]) is—
(a)the beneficial owner of, or
(b)able to control, directly or through the medium of other companies or by any other indirect means,
more than 5% of the ordinary share capital of the company.
(3)Condition B is that, in the case of a close company, the person (with or without one or more associates) or any associate of that person (with or without one or more [F9other such associates]), possesses or is entitled to acquire, such rights as would—
(a)in the event of the winding-up of the company, or
(b)in any other circumstances,
give an entitlement to receive more than 5% of the assets which would then be available for distribution among the participators.
(4)In this section—
“associate” has the meaning given by [F10section 448 of CTA 2010] except that, for this purpose, “relative” in [F11section 448(1)] has the meaning given by subsection (5) below, and
“participator” has the meaning given by [F12section 454 of CTA 2010].
(5)For the purposes of this section a person (“A”) is a relative of another (“B”) if A is—
(a)B’s spouse [F13or civil partner],
(b)a parent, child or remoter relation in the direct line either of B or of B’s spouse [F13or civil partner],
(c)a brother or sister of B or of B’s spouse [F13or civil partner], or
(d)the spouse [F13or civil partner] of a person falling within paragraph (b) or (c).
Textual Amendments
F8Words in s. 68(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 383(2) (with Sch. 2)
F9Words in s. 68(3) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 383(3) (with Sch. 2)
F10Words in s. 68(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 383(4)(a)(i) (with Sch. 2)
F11Words in s. 68(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 383(4)(a)(ii) (with Sch. 2)
F12Words in s. 68(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 383(4)(b) (with Sch. 2)
F13Words in s. 68(5) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 140
(1)The definition of “control” in [F14section 995 of ITA 2007] (which is applied for the purposes of this Act by section 719) is extended as follows.
(2)For the purposes of the benefits code that definition applies (with the necessary modifications) in relation to an unincorporated association as it applies in relation to a body corporate.
Textual Amendments
F14Words in s. 69(1) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 430 (with Sch. 2)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: