PART 1Direct taxes
Income tax: employment and pensions
1Taxable benefits: time limit for making good
1
Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.
2
In section 87 (cash equivalent of benefit of non-cash voucher)—
a
in subsection (2)(b), for “to the person incurring it” substitute “
, to the person incurring it, on or before 6 July following the relevant tax year
”
, and
b
after subsection (2) insert—
2A
If the voucher is a non-cash voucher other than a cheque voucher, the relevant tax year is—
a
the tax year in which the cost of provision is incurred, or
b
if later, the tax year in which the employee receives the voucher.
2B
If the voucher is a cheque voucher, the relevant tax year is the tax year in which the voucher is handed over in exchange for money, goods or services.
3
In section 88(3) (time at which cheque voucher treated as handed over), at the beginning insert “
For the purposes of subsection (2) and sections 87(2B) and 87A(6),
”
.
4
In section 94(2) (cash equivalent of benefit of credit-token), in paragraph (b), for the words from “employee” to the end substitute
employee—
i
to the person incurring it, and
ii
on or before 6 July following the tax year which contains the occasion in question.
5
In section 105(2) (cash equivalent of benefit of living accommodation costing £75,000 or less), in paragraph (b), after “made good” insert “
, on or before 6 July following the tax year which contains the taxable period,
”
.
6
In section 106(3) (cash equivalent of benefit of living accommodation costing over £75,000), in paragraph (a), for the words from “paid” to “exceeds” substitute
paid—
i
by the employee,
ii
in respect of the accommodation,
iii
to the person providing it, and
iv
on or before 6 July following the tax year which contains the taxable period,
exceeds
7
In section 144 (deduction for payments for private use of car)—
a
in subsection (1)(b), for “in” substitute “
on or before 6 July following
”
,
b
in subsection (2), after “paid” insert “
as mentioned in subsection (1)(b)
”
, and
c
in subsection (3), after “paid” insert “
as mentioned in subsection (1)(b)
”
.
8
In section 151(2) (when cash equivalent of benefit of car fuel is nil)—
a
in the words before paragraph (a) omit “in the tax year in question”,
b
in paragraph (a), at the beginning insert “
in the tax year in question,
”
, and
c
in paragraph (b), at the end insert “
on or before 6 July following that tax year
”
.
9
In section 152(2) (car fuel: proportionate reduction of cash equivalent)—
a
in the words before paragraph (a) omit “for any part of the tax year in question”,
b
in paragraph (a), at the beginning insert “
for any part of the tax year in question,
”
,
c
in paragraph (b), at the beginning insert “
for any part of the tax year in question,
”
, and
d
in paragraph (c)—
i
after “employee”, in the first place it occurs, insert
—
i
for any part of the tax year in question,
ii
for “and the employee does make good that expense” substitute
, and
ii
the employee does make good that expense on or before 6 July following that tax year
10
In section 158 (reduction for payments for private use of van)—
a
in subsection (1)(b), for “in” substitute “
on or before 6 July following
”
,
b
in subsection (2), after “paid” insert “
as mentioned in subsection (1)(b)
”
, and
c
in subsection (3), after “paid” insert “
as mentioned in subsection (1)(b)
”
.
11
In section 162(2) (when cash equivalent of benefit of van fuel is nil)—
a
in the words before paragraph (a) omit “in the tax year in question”,
b
in paragraph (a), at the beginning insert “
in the tax year in question,
”
, and
c
in paragraph (b), at the end insert “
on or before 6 July following that tax year
”
.
12
In section 163(3) (van fuel: proportionate reduction of cash equivalent)—
a
in the words before paragraph (a) omit “for any part of the tax year in question”,
b
in paragraph (a), at the beginning insert “
for any part of the tax year in question,
”
,
c
in paragraph (b), at the beginning insert “
for any part of the tax year in question,
”
, and
d
in paragraph (c)—
i
after “employee”, in the first place it occurs, insert
—
i
for any part of the tax year in question,
ii
for “and the employee does make good that expense” substitute
, and
ii
the employee does make good that expense on or before 6 July following that tax year
13
In section 203(2) (cash equivalent of benefit treated as earnings), for “to the persons providing the benefit” substitute “
, to the persons providing the benefit, on or before 6 July following the tax year in which it is provided
”
.
14
The amendments made by this section have effect for the purpose of calculating income tax charged for the tax year 2017-18 or any subsequent tax year.