SCHEDULES
SCHEDULE 7Transitionals and savings
Part 3Employment income: earnings and benefits etc. treated as earning
F5...
F515
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1116
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable benefits: the benefits code
17
1
In relation to times before 6th April 2003, references in the benefits code to “employment”, “employed”, “employee” and “employer” are to be read in accordance with this paragraph.
2
In relation to F7Chapters 3, 6, 7 and 10 of the benefits code (provisions not applicable before the tax year 2016-17 to lower-paid employments), the references mentioned in sub-paragraph (1) are to be read in accordance with section 66 (meaning of employment and related expressions) but as if in subsection (1)(a) there were substituted “an employment to which Chapter 2 of Part 5 of ICTA applies” for “a taxable employment under Part 2”.
3
In relation to any other Chapters of the benefits code, the references mentioned in sub-paragraph (1) are to be read in accordance with section 66 but as if in subsection (1)(a) there were substituted “an employment the emoluments of which fall to be assessed under Schedule E” for “a taxable employment under Part 2”.
F84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
This paragraph is subject to paragraphs 18(2), 24, 27(3), 29(4) and 31(2) of this Schedule.
F6...
Sch. 7 para. 19 and cross-heading omitted (with effect in accordance with s. 12(5) of the amending Act) by virtue of Finance Act 2015 (c. 11), s. 12(4)(b)
F418
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F619
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1220
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable benefits: living accommodation
21
1
Section 107 (special rule for calculating cost of providing accommodation) does not apply if the employee first occupied the living accommodation before 31st March 1983.
2
Nothing in this paragraph affects the operation of section 107 as applied by section 398(2)(b) or 415(2)(b).
Taxable benefits: loans
25
1
Chapter 7 of Part 3 applies to a loan made at any time, including one made before 29th July 1976 (the date on which FA 1976 was passed).
2
But section 188 (loan released or written off: amount treated as earnings) does not apply to benefits received in pursuance of arrangements made at any time with a view to protecting the holder of shares acquired before 6th April 1976 from a fall in their market value.
26
1
This paragraph relates to the operation of section 183 (alternative method of calculation) in relation to section 177(2) (exceptions for loans at fixed rate of interest) in the case of a loan made before 6th April 2003.
2
Where section 183 applies, then for the purpose of calculating under section 177(2) the amount of interest that would have been payable on the loan at the official rate of interest for the year in which the loan was made, in step 3 in section 183(3) for “the number of days in the tax year” substitute “
365
”
.
27
1
Subject to paragraph 25(2), where a loan is made before 6th April 2003, section 188 (loan released or written off: amount treated as earnings) applies with the following modifications.
2
References to the employment in relation to which a loan is an employment-related loan are to be read, in relation to times before 6th April 2003, as references to the employment referred to in section 174 (employment-related loans) as modified by paragraph 17.
3
In relation to times before 6th April 2003—
a
in subsection (2)(c), substitute “an employment to which Chapter 2 of Part 5 of ICTA applies” for F9“not lower-paid employment as a minister of religion”, and
b
in subsection (3)(a), substitute “
an employment to which Chapter 2 of Part 5 of ICTA does not apply
”
for F10“lower-paid employment as a minister of religion”.
Taxable benefits: residual liability to charge
32
1
This paragraph applies in relation to Chapter 10 of Part 3.
2
In section 206, the references in subsection (4) and step 2 in subsection (5) to the cost of a benefit determined under section 205 are to be read as including a reference to the cost of a benefit determined under section 156(5) of ICTA.
3
Sections 212, 213 and 215 do not have effect in relation to any payment if—
a
it is made in respect of a scholarship awarded before 15th March 1983,
b
the first payment in respect of the scholarship was made before 6th April 1984, and
c
in relation to payments made after 5th April 1989, the person holding the scholarship (“the scholar”) is receiving full-time instruction at the university, college, school or other educational establishment at which the scholar was receiving such instruction on—
i
15th March 1983, in a case where the first payment in respect of the scholarship was made before that date, or
ii
the date on which the first such payment was made, in any other case.
4
For the purposes of sub-paragraph (3)(c), a payment made before 6th April 1989 in respect of any period beginning on or after that date is treated as made at the beginning of that period.
Sch. 7 para. 15 and cross-heading omitted (with effect in accordance with s. 12(5) of the amending Act) by virtue of Finance Act 2015 (c. 11), s. 12(4)(b)