The Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007

Citation and commencement

1.—(1) These Regulations may be cited as the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007 and come into force on 8th January 2008.

(2) These Regulations have effect for the tax year 2006-07 and subsequent tax years.

Interpretation

2.—(1) In these Regulations—

“employee” includes a former employee;

“employer” includes—

(a)

a former employer; and

(b)

a person who has assumed the responsibility for providing a benefit in place of the person who employed the employee;

“ill-health” means physical or mental impairment;

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

“relevant benefit” means a benefit to which Chapter 2 of Part 6 of ITEPA 2003 applies.

(2) References to a member of a person’s family shall be construed in accordance with section 721(4) of ITEPA 2003(1), but this is subject to regulation 3(4).

Excluded benefits

3.—(1) A relevant benefit—

(a) that is provided (or to be provided) in any of the circumstances mentioned in paragraphs (a) to (c) of section 393B(1) of ITEPA 2003;

(b) that is described in the Schedule; and

(c) that is provided to a qualifying person,

is an excluded benefit for the purposes of section 393B(3)(d) of ITEPA 2003.

(2) The following are qualifying persons for the purposes of paragraph (1)—

(a) in the case of the benefit described in paragraph 2 (accommodation provided for performance of duties - employees) or paragraph 16 (equipment for disabled employees) of the Schedule, the employee,

(b) in the case of the benefit described in paragraph 3 of the Schedule (accommodation provided for performance of duties – members of employees’ families), a member of the employee’s family,

(c) in the case of any other benefit described in Part 1 of the Schedule—

(i) the employee, and

(ii) after any of the events specified in paragraph (3), a member of the employee’s family,

(d) in the case of any other benefit described in Part 3 of the Schedule—

(i) the employee, and

(ii) after the employee’s death, a member of the employee’s family.

(3) The events mentioned in paragraph (2)(c)(ii) are—

(a) the employee’s death;

(b) the employee’s taking up residence elsewhere (than in the living accommodation concerned) as a result of ill-health;

(c) the employee’s taking up residence elsewhere (than in the living accommodation concerned) following—

(i) a separation,

(ii) the annulment or divorce of a marriage, or

(iii) the nullity or dissolution of a civil partnership.

(4) Where the event mentioned in paragraph (3)(c)(ii) or (iii) has occurred, the ex-spouse or ex-civil partner shall be treated as a member of the employee’s family.

Dave Hartnett

Mike Hanson

Two Commissioners for Her Majesty’s Revenue and Customs

14th December 2007