(1) An employee is an eligible employee for the purposes of section 270A if conditions A to C are met in relation to the employee.
(2) Condition A is that the employee—
(a) was employed by the employer immediately before the relevant day, and
(b) has not ceased to be employed by the employer on or after that day.
(3) “The relevant day” means the day specified by the Treasury in regulations for the purposes of this section.
(4) Condition B is that there has not been a period of 52 tax weeks ending on or after the relevant day which has not included at least one qualifying week.
(5) In subsection (4)—
“qualifying week” means a tax week in respect of which a qualifying childcare voucher has been provided for the employee under the scheme by the employer in respect of a child, and
“tax week” has the meaning given by section 270A(7).
(6) Condition C is that the employee has not given the employer a childcare account notice.
(7) A “childcare account notice” is a written notice informing the employer that the employee wishes to leave the scheme in order to be able to open a childcare account under section 17 of the Childcare Payments Act 2014 or enable the employee's partner to do so.
(8) In subsection (7) “partner” is to be read in accordance with regulations made under section 3(5) of that Act.
270B Meaning of “relevant earnings amount” and “required time”
(1) For the purposes of section 270A, the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, means—
(a) the aggregate of—
(i) the amount of any relevant earnings for the tax year from employment by the employer, and
(ii) any amounts treated under Chapters 2 to 12 of Part 3 as earnings from such employment, less
(b) the aggregate of any excluded amounts.
(2) But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in subsection (1)(a) is the relevant multiple of that amount; and the relevant multiple is—
365 RD
where RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.
(3) In subsection (1)(a) “relevant earnings” means—
(a) salary, wages or fees, and
(b) any other earnings specified in regulations made by the Treasury under this paragraph.
(4) In subsection (1)(b) “excluded amounts” means amounts specified in regulations made by the Treasury under this subsection.
(5) In section 270A “the required time”, in the case of an employee, means—
(a) if the employee joins the scheme under which the vouchers are provided at a time during the tax year, that time, and
(b) otherwise, the beginning of the tax year.
(6) For the purposes of subsection (5)(a) the employee is taken to join the scheme as soon as—
(a) the employer has agreed that vouchers will be provided under the scheme for the employee, and
(b) there is a child falling within section 270A(3)(a) or (b) in relation to the employee.
(7) The Treasury may by order amend this section.
271 Limited exemption of removal benefits and expenses: general
(1) No liability to income tax in respect of earnings or by virtue of Part 7A arises by virtue of—
(a) the provision of removal benefits to which this section applies, or
(b) the payment or reimbursement of removal expenses to which this section applies.
(2) In relation to earnings, subsection (1) does not apply if (disregarding this section) the earnings are general earnings to which either of the following sections applies—
(a) section 22 (chargeable overseas earnings for year when remittance basis applied and employee outside section 26 ), or
(b) section 26 (foreign earnings for year when remittance basis applied and employee met section 26A requirement ).
(2A) In relation to Part 7A, subsection (1) does not apply to any amount so far as the amount (disregarding this section and section 554P) would count as employment income to which section 554Z9 or 554Z10 would apply.
(3) Subsection (1) is subject to section 287 (limit on exemption).
272 Removal benefits and expenses to which section 271 applies
(1) Benefits are removal benefits to which section 271 applies if—
(a) they are reasonably provided in connection with a change of the employee’s residence which meets the conditions in section 273,
(b) they are provided on or before the limitation day (see section 274), and
(c) they are within subsection (2) or one of the following provisions—
(i) section 277 (acquisition benefits and expenses),
(ii) section 278 (abortive acquisition benefits and expenses),
(iii) section 279 (disposal benefits and expenses),
(iv) section 280 (transporting belongings),
(v) section 281 (travelling and subsistence),
(vi) section 285 (replacement of domestic goods).
(2) A benefit is within this subsection if it is a non-cash voucher, cash voucher or credit-token used—
(a) to obtain goods or services the direct provision of which would be a benefit within one of the provisions specified in subsection (1)(c)(i) to (vi), or
(b) to obtain money for the purpose of obtaining such goods or services or meeting expenses within one of those provisions or section 284 (bridging loan expenses).
(3) Expenses are removal expenses to which section 271 applies if—
(a) they are reasonably incurred by the employee in connection with a change of the employee’s residence which meets the conditions in section 273,
(b) they are incurred on or before the limitation day, and
(c) they are within one of the provisions referred to in subsection (1)(c)(i) to (vi) or within section 284 (bridging loan expenses).
(1) The conditions referred to in section 272(1)(a) and (3)(a) which apply to the change of the employee’s residence are conditions A to C.
(2) Condition A is that the change of residence results from one of the following changes—
(a) the employee becoming employed,
(b) an alteration of the duties of the employment, or
(c) an alteration of the place where the employee is normally to perform those duties.
(3) Condition B is that the change of residence is made wholly or mainly to allow the employee to reside within a reasonable daily travelling distance of the place where the employee normally performs or is normally to perform the duties of the employment after the employment change (see section 275).
(4) Condition C is that the employee’s former residence is not within a reasonable daily travelling distance of that place.
(1) In this Chapter “the limitation day”, in relation to an employee’s change of residence, means the last day of the tax year after that in which the employee begins to perform the duties of the employment after the employment change, but this is subject to any direction under subsection (2).
(2) An officer of Revenue and Customs may direct that the last day of a later tax year is the limitation day in relation to any particular change of residence if it appears to them reasonable to do so having regard to all the circumstances of that change.
In this Chapter “the employment change”, in relation to an employee’s change of residence, means whichever of the changes specified in section 273(2) results in the change of residence.
276 Meaning of “residence”, “former residence” and “new residence” etc.
(1) If an employee has more than one residence, references in this Chapter to the employee’s residence are references to the employee’s main residence.
(2) In this Chapter, in relation to a change of the employee’s residence—
(a) references to the former residence are references to the employee’s residence before the change, and
(b) references to the new residence are references to the employee’s residence after the change.
(3) In this Chapter references to an interest in a residence are, in the case of a building, references to an estate or interest in the land concerned.
(1) This section applies if an interest in the employee’s new residence is acquired by—
(a) the employee,
(b) one or more members of the employee’s family or household, or
(c) the employee and one or more members of the employee’s family or household.
(2) The following benefits are within this section—
(a) legal services connected with the acquisition of the interest, including legal services connected with any loan raised by the employee to acquire it,
(b) the waiving of any procurement fees connected with any such loan,
(c) the waiving of any amount payable in respect of insurance effected to cover risks incurred by the maker of any such loan because the loan equals the whole, or a substantial part, of the value of the interest,
(d) any survey or inspection of the residence undertaken in connection with the acquisition, and
(e) the connection of any utility serving the new residence for use by the employee or by the employee and one or more members of the employee’s family or household.
(3) The following expenses are within this section—
(a) sums paid for any services within subsection (2)(a), (d) or (e),
(b) any procurement fees connected with any loan raised by the employee to acquire the interest,
(c) the costs of any insurance within subsection (2)(c),
(d) fees payable to an appropriate registry or appropriate register in connection with the acquisition, and
(e) stamp duty or stamp duty land tax charged on the acquisition.
(4) In this section references to a loan raised by the employee include a loan raised by—
(a) one or more members of the employee’s family or household, or
(b) the employee and one or more members of the employee’s family or household.
(5) In this section—
“appropriate registry” means—
Her Majesty’s Land Registry,
the Land Registry in Northern Ireland, or
the Registry of Deeds for Northern Ireland, and
“appropriate register” means any register under the management and control of the Keeper of the Registers of Scotland.
Benefits or expenses are within this section if—
(a) they are benefits provided or expenses incurred with a view to the acquisition of an interest in a residence,
(b) the interest is not acquired—
(i) because of circumstances outside the control of the person seeking to acquire it, or
(ii) because that person reasonably declines to proceed, and
(c) the benefits or expenses would have fallen within section 277 if the interest had been acquired.
(1) This section applies if the employee has an interest in the former residence and because of the change of residence it is disposed of or is intended to be disposed of.
(2) The following benefits are within this section—
(a) legal services connected with the disposal or intended disposal, including legal services connected with the redemption of a related loan,
(b) the waiving of any penalty for redeeming a related loan for the purpose of the disposal or intended disposal,
(c) the services of an estate agent or auctioneer engaged in the disposal or intended disposal,
(d) services connected with the advertisement of the disposal or intended disposal,
(e) the disconnection, for the purpose of the disposal or intended disposal, of any utility serving the former residence, and
(f) services connected with maintaining, insuring, or preserving the security of, the former residence at any time when it is unoccupied pending the disposal or intended disposal.
(3) The following expenses are within this section—
(a) sums paid for any services within subsection (2)(a), (c), (d) or (e),
(b) any penalty for redeeming a related loan for the purpose of the disposal or intended disposal,
(c) rent paid in respect of the former residence at any time when it is unoccupied pending the disposal or intended disposal, and
(d) expenses of maintaining, insuring, or preserving the security of the former residence at any time when it is unoccupied pending the disposal or intended disposal.
(4) In this section references to the employee having an interest in a residence include—
(a) one or more members of the employee’s family or household having such an interest, or
(b) the employee and one or more members of the employee’s family or household having such an interest.
(5) A loan is a “related loan” for this purpose if—
(a) it was raised to obtain an interest in the former residence, or
(b) it is secured on such an interest, or
(c) part of it was so raised and the rest of it is so secured.
(1) The following benefits are within this section—
(a) the transportation of domestic belongings from the employee’s former residence to the employee’s new residence, and
(b) the effecting of insurance to cover such transportation.
(2) The following expenses are within this section—
(a) expenses connected with such transportation, and
(b) the costs of any such insurance.
(3) In this section—
“domestic belongings” means belongings of the employee or of members of the employee’s family or household, and
“transportation” includes—
packing and unpacking belongings,
temporarily storing them, where there is not a direct move from the former to the new residence,
detaching domestic fittings from the former residence, where they are to be taken to the new residence, and
attaching domestic fittings to the new residence and adapting them, where they are brought from the former residence.
(1) The following benefits are within this section—
(a) subsistence and facilities for travel provided for the employee and members of the employee’s family or household for temporary visits to the new area for purposes connected with the change of residence,
(b) any other subsistence provided for the employee,
(c) facilities provided for the employee for travel between the employee’s former residence and—
(i) the place where the employee’s new duties are normally performed, or
(ii) the new place where the duties of the employee’s employment are normally performed, or
(iii) temporary living accommodation of the employee,
(d) where the employment change is within section 273(2)(b) or (c) (change of duties or place of performance), facilities provided for the employee for travel before the change between the employee’s new residence and—
(i) the place where the employee normally performs the duties of the employment before the change, or
(ii) temporary living accommodation of the employee,
(e) facilities provided for the employee and members of the employee’s family or household for travel from the employee’s former residence to the employee’s new residence in connection with the change of residence,
(f) subsistence provided for a relevant child while the child stays in education-linked living accommodation,
(g) facilities provided for a relevant child for travel between education-linked living accommodation and the employee’s accommodation.
(2) For the purposes of this section, “education-linked living accommodation”, in relation to a relevant child, means living accommodation where the child stays for the purpose of securing continuity in education, being—
(a) accommodation in the new area where the child stays before the employee’s change of residence,
(b) accommodation in the former area where the child stays after that change,
(c) accommodation in the new area where the child stays while the employee is living in temporary living accommodation in the former area, or
(d) accommodation in the former area where the child stays while the employee is living in temporary living accommodation in the new area.
(3) For the purposes of subsection (1)(g) “the employee’s accommodation”, in relation to travel to or from education-linked accommodation, means—
(a) if that accommodation is within subsection (2)(a), the employee’s former residence,
(b) if that accommodation is within subsection (2)(b), the employee’s new residence, and
(c) if that accommodation is within subsection (2)(c) or (d), the employee’s temporary accommodation.
(4) The cost of providing subsistence or travel of a kind described in subsection (1) is an expense within this section.
(5) Subsections (1) and (4) are subject to section 282 (exclusion from this section of benefits and expenses where deduction allowed), and subsection (1) is also subject to section 283 (exclusion from this section of taxable car and van facilities).
(6) In this section—
“new duties” means—
if the employment change is within section 273(2)(a) (change of employer), the duties of the employee’s new employment, and
if the employment change is within section 273(2)(b) (change of duties), the new duties of the employment,
“former area” means the area round or near the former residence of the employee,
“new area” means—
if the employment change is within section 273(2)(a) or (b) (change of employer or duties), the area round or near the place where the employee’s new duties normally are or are to be performed, and
if the employment change is within section 273(2)(c) (change of place of performance), the area round or near the new place where the duties of the employee’s employment normally are or are to be performed,
“relevant child” means a person who is a member of the employee’s family or household and is aged under 19 at the beginning of the tax year in which the employment change occurs, and
“subsistence” means food, drink and temporary living accommodation.
282 Exclusion from section 281 of benefits and expenses where deduction allowed
(1) Benefits and expenses are excluded from section 281 (travelling and subsistence) if or to the extent that an amount is deductible in respect of the cost of the benefits or of the expenses under any of the following provisions.
(2) They are—
(a) section 341 (travel at start or finish of overseas employment),
(b) section 342 (travel between employments where duties performed abroad), and
(c) Chapter 5 of Part 5 except section 376 (deductions for earnings representing benefits or reimbursed expenses in respect of certain foreign travel).
(3) If an amount is so deductible in respect of part only of the cost of a benefit, the part of the benefit excluded by this section is to be determined on a just and reasonable basis.
283 Exclusion from section 281 of taxable car and van facilities
(1) A car or van is not treated as a facility for the purposes of section 281(1) if in the tax year in which it is provided it is also made available—
(a) to the employee or members of the employee’s family or household for private use not falling within section 281(1),
(b) by reason of the employee’s employment, and
(c) without any transfer of the property in it.
(2) The following sections apply for the purposes of this section as they apply for the purposes of Chapter 6 of Part 3 (taxable benefits: cars, vans and related benefits)—
(a) section 115 (meaning of “car” and “van”),
(b) section 117 (meaning of car or van made available by reason of employment), and
(c) section 118 (availability for private use).
(1) Expenses are within this section if—
(a) the employee has an interest in the former residence and disposes of it because of the change of residence,
(b) the employee acquires an interest in the new residence, and
(c) the expenses are interest payable by the employee in respect of a loan raised by the employee wholly or partly because expenditure is incurred in connection with that acquisition before the proceeds of that disposal become available.
This is subject to subsections (2) and (3).
(2) Interest is only within this section if or to the extent that the loan is used—
(a) for acquiring the employee’s interest in the new residence, or
(b) for redeeming a loan—
(i) which was raised by the employee to obtain an interest in the former residence,
(ii) which is secured on such an interest, or
(iii) which was partly so raised and the rest of which is so secured.
(3) If the loan exceeds the market value of the employee’s interest in the former residence at the time of acquisition of the new residence, the interest on the excess is not within this section.
(4) If subsection (3) applies in a case where the loan is used partly for purposes within subsection (2) and partly for other purposes, the amount of the interest within this section is the appropriate fraction of the total interest.
(5) The appropriate fraction is—
MV
L
or, if it is smaller—
PL
L
where—
MV is the market value of the employee’s interest in the former residence at the time of acquisition of the new residence,
PL is the part of the loan used for purposes within subsection (2), and
L is the amount of the loan.
(6) In this section—
(a) references to a loan raised by the employee include a loan raised by—
(i) one or more members of the employee’s family or household, or
(ii) the employee and one or more members of the employee’s family or household, and
(b) references to the employee having, disposing of or acquiring an interest in a residence include—
(i) one or more members of the employee’s family or household having, disposing of or acquiring such an interest, or
(ii) the employee and one or more members of the employee’s family or household having, disposing of or acquiring such an interest.
(1) Benefits and expenses are within this section if—
(a) the employee has an interest in the former residence and disposes of it because of the change of residence,
(b) the employee acquires an interest in the new residence,
(c) in the case of benefits, they are domestic goods provided to replace goods used at the former residence which are unsuitable for use at the new residence, and
(d) in the case of expenses, they are incurred on the purchase of domestic goods intended for such replacement.
(2) In this section references to the employee having, disposing of or acquiring an interest in a residence include—
(a) one or more members of the employee’s family or household having, disposing of or acquiring such an interest, or
(b) the employee and one or more members of the employee’s family or household having, disposing of or acquiring such an interest.
(1) The Treasury may by regulations amend sections 277 to 285 so as to secure that benefits or expenses which would not otherwise fall within any of those sections do so.
(2) The regulations may include such supplementary, incidental or consequential provisions as appear to the Treasury to be necessary or expedient.
(3) Those provisions may be made by amending this Chapter or otherwise.
(4) The regulations apply to a change of an employee’s residence resulting from an employment change occurring on or after the day specified in the regulations for this purpose.
(1) If in the case of any change of residence the value of the exemption exceeds £8,000, section 271 (exemption of removal benefits and expenses) does not apply to the excess.
(2) The value of the exemption is an amount equal to the sum of—
(a) the section 62 earnings, ...
(b) the benefits code earnings (after taking account of section 64(2)(b) where otherwise an amount that falls within paragraph (a) would be included), and
(c) the Part 7A employment income
(3) In this section “the section 62 earnings” means all earnings within section 62 (earnings) in respect of which section 271 would prevent liability to income tax from arising if this section were disregarded.
(4) In this section “the benefits code earnings” means all earnings—
(a) which are treated as such under the benefits code (except earnings so treated under Chapter 7 of Part 3 (taxable benefits: loans)), and
(b) in respect of which section 271 would prevent liability to income tax from arising if this section were disregarded.
(5) In the case of living accommodation, the amount that would be so treated is to be taken to be equal to—
CE
-
D
where—
CE is the cash equivalent of the accommodation under Chapter 5 of Part 3 (taxable benefits: living accommodation) for the period in which the accommodation is provided (calculated as mentioned in section 103), and
D is any amount deductible under section 364 (deductions where living accommodation provided).
(6) In this section “the Part 7A employment income” means the amount in respect of which section 271 (when read with section 554P) would prevent liability to income tax arising if this section were to be disregarded.
288 Limited exemption of certain bridging loans connected with employment moves
(1) No liability to income tax arises by virtue of Chapter 7 of Part 3 (taxable benefits: loans) in respect of a loan if—
(a) it is a removal benefit (see subsection (2)),
(b) the unused removal benefit exemption condition is met (see subsection (3)), and
(c) the loan is discharged before the end of the exempted loan discharge period (see subsection (4)).
(2) For the purposes of this section and section 289, a loan is a removal benefit if—
(a) it is raised by the employee in connection with a change of residence meeting the conditions in section 273 (conditions applicable to change of residence),
(b) the employee has an interest in the former residence and disposes of it in consequence of the change of residence,
(c) the employee acquires an interest in the new residence,
(d) the loan is raised wholly or partly because expenditure is incurred in connection with that acquisition before the proceeds of that disposal become available, and
(e) the loan is made before the limitation day.
(3) For the purposes of this section and section 289 the unused removal benefit exemption condition is that, in the case of the particular change of residence—
(a) the sum specified in section 287(1) (limit on exemption), exceeds
(b) the amount referred to in section 287(2) (the value of the exemption);
and for those purposes that excess is “the unused exemption”.
(4) In this section and section 289 “the exempted loan discharge period”, in relation to a loan, means the period of N days beginning with the day on which it is made, taking N as the number obtained by applying the following formula and, if that does not give a whole number, rounding up the result to the nearest whole number—
A
B
×
C
×
365
where—
A is the unused exemption,
B is the maximum amount of the loan outstanding in the period beginning with the time when the loan is made and ending with the limitation day, and
C is the official rate of interest in force when the loan is made (expressed as a percentage).
(5) In this section—
(a) references to a loan raised by the employee include a loan raised by—
(i) one or more members of the employee’s family or household, or
(ii) the employee and one or more members of the employee’s family or household, and
(b) references to the employee having, disposing of or acquiring an interest in a residence include—
(i) one or more members of the employee’s family or household having, disposing of or acquiring such an interest, or
(ii) the employee and one or more members of the employee’s family or household having, disposing of or acquiring such an interest.
(6) The tax payable in respect of a loan for a tax year ending before the limitation day may be decided on the basis that the unused removal benefit exemption condition will not be met.
289 Relief for certain bridging loans not qualifying for exemption under section 288
(1) This subsection applies to a loan if—
(a) it is a removal benefit (see section 288(2)),
(b) the unused removal benefit exemption condition is met (see section 288(3)), and
(c) the loan is not discharged before the end of the exempted loan discharge period (see section 288(4)).
(2) A loan to which subsection (1) applies is to be treated for the purposes of Chapter 7 of Part 3 (taxable benefits: loans) as if it was made on the day after the last day of the exempted loan discharge period.
(3) Subsection (2) does not apply for the purposes of sections 176, 177, 180, 189 and 190.
(4) The tax payable in respect of a loan for a tax year ending before the limitation day may be decided on the basis that subsections (1) and (2) will not apply because the unused removal benefit exemption condition will not be met.
(1) No liability to income tax arises by virtue of Chapter 3 of Part 3 (taxable benefits: expenses payments) in respect of an amount (“amount A”) paid or reimbursed by a person to an employee (whether or not an employee of the person) in respect of expenses if—
(a) an amount equal to or exceeding amount A would (ignoring this section) be allowed as a deduction from the employee's earnings under Chapter 2 or 5 of Part 5 in respect of the expenses, and
(b) the payment or reimbursement is not provided pursuant to relevant salary sacrifice arrangements.
(2) No liability to income tax arises in respect of an amount paid or reimbursed by a person (“the payer”) to an employee (whether or not an employee of the payer) in respect of expenses if—
(a) the amount has been calculated and paid or reimbursed in an approved way (see subsection (6)),
(b) the payment or reimbursement is not provided pursuant to relevant salary sacrifice arrangements, and
(c) conditions A and B are met.
(2A) No liability to income tax arises in respect of an amount paid or reimbursed by a person (“the payer”) to an employee (whether or not an employee of the payer) for expenses in the course of qualifying travel if—
(a) the amount has been calculated and paid or reimbursed in accordance with regulations made by the Commissioners for Her Majesty's Revenue and Customs,
(b) the payment or reimbursement is not provided pursuant to relevant salary sacrifice arrangements, and
(c) condition C is met.
(3) Condition A is that the payer or another person operates a system for checking—
(a) that the employee is, or employees are, in fact incurring and paying amounts in respect of expenses of the same kind, and
(b) that a deduction would (ignoring this section) be allowed under Chapter 2 or 5 of Part 5 in respect of those amounts.
(4) Condition B is that neither the payer nor any other person operating the system knows or suspects, or could reasonably be expected to know or suspect—
(a) that the employee has not incurred and paid an amount in respect of the expenses, or
(b) that a deduction from the employee's earnings would not be allowed under Chapter 2 or 5 of Part 5 in respect of the amount.
(4A) Condition C is that—
(a) the payer or another person operates a system for checking that the employee has undertaken the qualifying travel in relation to which the amount is paid or reimbursed, and
(b) neither the payer nor any other person operating the system knows or suspects, or could reasonably be expected to know or suspect, that the travel was not undertaken.
(5) In this section “relevant ” , in relation to an employee to whom an amount is paid or reimbursed for or in respect of expenses, means arrangements (whenever made, whether before or after the employment began) under which—
(a) the employee gives up the right to receive an amount of general earnings or specific employment income in return for the payment or reimbursement, or
(b) the amount of other general earnings or specific employment income received by the employee depends on the amount of the payment or reimbursement.
(5A) In this section “qualifying travel” means travel for which a deduction from the employee's earnings would be allowed under Chapter 2 or 5 of Part 5.
(6) For the purposes of subsection (2) , a sum is calculated and paid or reimbursed in an approved way if—
(a) it is calculated and paid or reimbursed in accordance with regulations made by the Commissioners for Her Majesty's Revenue and Customs, or
(b) it is calculated and paid or reimbursed in accordance with an approval given under section 289B.
(7) Regulations made under subsection (2A)(a) or (6)(a) may make different provision for different purposes.
(8) Regulations made under subsection (2A)(a) may contain provision about calculating amounts that is framed by reference to rates (for expenses) published from time to time by the Commissioners for Her Majesty's Revenue and Customs.
289B Approval to pay or reimburse expenses at a flat rate
(1) A person (“the applicant”) may apply to Her Majesty's Revenue and Customs for approval to pay or reimburse expenses of the applicant's employees, or employees of another person, at a rate set out in the application (“the proposed rate”).
(2) An officer of Revenue and Customs may give the approval if satisfied that any calculation of a payment or reimbursement of expenses in accordance with the proposed rate, or such other rate as is agreed between the applicant and the officer, would be a reasonable estimate of the amount of expenses actually incurred.
(3) An approval under subsection (2) takes effect in accordance with a notice (an “approval notice”) given to the applicant by an officer of Revenue and Customs.
(4) An approval notice must specify—
(a) the rate at which expenses may be paid or reimbursed,
(b) the day from which the approval takes effect, that day not being earlier than the day on which the approval notice is given,
(c) the day on which the approval ceases to have effect, that day not being later than the end of the period of 5 years beginning with the day on which the approval takes effect, and
(d) the type of expenses to which the approval relates.
(5) An approval notice may specify that the approval is subject to conditions specified or described in the notice.
(6) An application for an approval under this section must be in such form and manner, and contain such information, as is specified by Her Majesty's Revenue and Customs.
(1) An officer of Revenue and Customs may, if in the officer's opinion there is reason to do so, revoke an approval given under section 289B by giving a further notice (a “revocation notice”) to either or both of the following—
(a) the person who applied for the approval, and
(b) the person who is paying or reimbursing expenses in accordance with the approval.
(2) A revocation notice may revoke the approval from—
(a) the day on which the approval took effect, or
(b) a later day specified in the notice.
(3) A revocation under subsection (1) may be in relation to all expenses or expenses of a description specified in the revocation notice.
(4) If the revocation notice revokes the approval from the day on which the approval took effect—
(a) any liability to tax that would have arisen in respect of the payment or reimbursement of expenses if the approval had never been given in relation to such expenses is to be treated as having arisen, and
(b) any person who has made, and any employee who has received, a payment or reimbursement of expenses calculated in accordance with the approval must make all the returns which they would have had to make if the approval had never been given in relation to such expenses.
(5) If the revocation notice revokes the approval from a later day—
(a) any liability to tax that would have arisen in respect of the payment or reimbursement of expenses if the approval had ceased to have effect on that day in relation to such expenses is to be treated as having arisen, and
(b) any person who has made, and any employee who has received, a payment or reimbursement of expenses calculated in accordance with the approval must make all the returns which they would have had to make if the approval had ceased to have effect in relation to such expenses on that day.
(1) No liability to income tax arises by virtue of any provision of the benefits code in respect of an amount (“amount A”) treated as earnings of an employee as a result of the provision of a benefit if—
(a) an amount equal to amount A would (ignoring this section) be allowed as a deduction from the employee's earnings under Chapter 3 of Part 5 in respect of the provision of the benefit, and
(b) the benefit is not provided pursuant to relevant salary sacrifice arrangements.
(2) “Relevant salary sacrifice arrangements”, in relation to an employee to whom a benefit is provided, means arrangements (whenever made, whether before or after the employment began) under which—
(a) the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of the benefit, or
(b) the amount of other general earnings or specific employment income received by the employee depends on the provision of the benefit.
(1) This section applies if conditions A to C are met.
(2) Condition A is that, pursuant to arrangements, an amount—
(a) is paid or reimbursed to an employee in respect of expenses, or
(b) is treated as earnings of an employee as a result of the provision of a benefit,
which, in the absence of this section, would have been exempt from income tax.
(3) Condition B is that, in the absence of those arrangements, the employee would have received a greater amount of general earnings or specific employment income in respect of which—
(a) tax would have been chargeable, or
(b) national insurance contributions would have been payable (whether by the employee or another person).
(4) Condition C is that the main purpose, or one of the main purposes, of the arrangements is the avoidance of tax or national insurance contributions.
(5) If this section applies—
(a) the exemption conferred by section 289A does not apply in respect of the amount paid or reimbursed as mentioned in subsection (2)(a), and
(b) the exemption conferred by section 289D does not apply in respect of the amount treated as earnings as mentioned in subsection (2)(b).
(6) In this section “arrangements” includes any scheme, transaction or series of transactions, agreement or understanding, whether or not legally enforceable.
290 Accommodation benefits of ministers of religion
(1) No liability to income tax in respect of a person employed as a full-time minister arises by virtue of—
(a) the payment or reimbursement of a statutory amount payable in connection with qualifying premises, or
(b) the reimbursement of a statutory deduction made in connection with qualifying premises.
(2) No liability to income tax in respect of a person employed as a full-time minister arises by virtue of the payment or reimbursement of expenses incurred in connection with providing living accommodation in qualifying premises if the employment is lower-paid employment as a minister of religion (see section 290D).
(3) Subsection (1) does not apply if or to the extent that the amount or deduction is properly attributable to a part of the premises for which the minister receives rent.
(4) Premises are qualifying premises in relation to a person employed as a minister if—
(a) an interest in them belongs to a charity or an ecclesiastical corporation, and
(b) because of that interest and by reason of holding the employment, the minister has a residence in them from which to perform the duties of the employment.
(5) In this section—
...
“full-time minister” means a person in full-time employment as a minister of a religious denomination,
“statutory amount” means an amount paid in pursuance of a provision in, or having the force of, an Act, and
“statutory deduction” means a deduction made in pursuance of such a provision.
290A Accommodation outgoings of lower-paid ministers of religion
(1) No liability to income tax arises in respect of a person in lower-paid employment as a minister of religion by virtue of the payment or reimbursement of accommodation outgoings.
(2) Subsection (1) does not apply if the minister is paid an allowance intended to be used, wholly or in part, for paying accommodation outgoings (as to which see section 290B).
(3) In this section—
“accommodation outgoings” means amounts incurred by the minister in—
heating, lighting or cleaning qualifying premises; or
maintaining a garden forming part of qualifying premises;
...
“qualifying premises” has the same meaning as in section 290.
290B Allowances paid to lower-paid ministers of religion in respect of accommodation outgoings
(1) This section applies where a person in lower-paid employment as a minister of religion is paid an allowance intended to be used, wholly or in part, for paying accommodation outgoings.
(2) No liability to tax arises by virtue of the payment of the allowance to the extent that it is used for paying accommodation outgoings.
(3) In this section—
“accommodation outgoings” has the same meaning as in section 290A;
“qualifying premises” has the same meaning as in section 290.
290C Provisions of benefits code not applicable to lower-paid ministers of religion
(1) This section applies where a person is in employment which is lower-paid employment as a minister of religion in relation to a tax year.
(2) No liability to income tax arises in respect of the person in relation to the tax year by virtue of any of the following Chapters of the benefits code—
(a) Chapter 3 (taxable benefits: expenses payments);
(b) Chapter 6 (taxable benefits: cars, vans and related benefits);
(c) Chapter 7 (taxable benefits: loans);
(d) Chapter 10 (taxable benefits: residual liability to charge).
(3) Subsection (2)—
(a) means that in any of those Chapters a reference to an employee does not include an employee whose employment is within the exclusion in that subsection, if the context is such that the reference is to an employee in relation to whom the Chapter applies, but
(b) does not restrict the meaning of references to employees in other contexts.
(4) Subsection (2) has effect subject to—
(a) section 188(2) (discharge of loan: where employment becomes lower-paid), and
(b) section 290G (employment in two or more related employments).
290D Meaning of “lower-paid employment as a minister of religion”
(1) For the purposes of this Part an employment is “lower-paid employment as a minister of religion” in relation to a tax year if—
(a) the employment is direct employment as a minister of a religious denomination, and
(b) the earnings rate for the employment for the year (calculated under section 290E) is less than £8,500.
(2) An employment is not “direct employment” for the purposes of subsection (1)(a) if—
(a) it is an employment which is treated as existing under—
(i) section 56(2) (deemed employment of worker by intermediary), or
(ii) section 61G(2) (deemed employment of worker by managed service company), or
(b) an amount counts as employment income in respect of it by virtue of section 554Z2(1) (treatment of relevant step under Part 7A (employment income provided through third parties)).
(3) Subsection (1) is subject to section 290G.
(1) For any tax year the earnings rate for an employment is to be calculated as follows—
Step 1 Find the total of the following amounts—
the total amount of the earnings from the employment for the year within Chapter 1 of Part 3 (earnings),
the total of any amounts that are treated as earnings from the employment for the year under the benefits code (see subsections (2) and (3)), and
the total of any amounts that are treated as earnings from the employment for the year under Chapter 12 of Part 3 (other amounts treated as earnings),
excluding any exempt income, other than any attributable to section 290A or 290B (accommodation outgoings of ministers of religion).
Step 2 Add to that total any extra amount required to be added for the year by section 290F (extra amounts to be added in connection with a car).
Step 3 Subtract the total amount of any authorised deductions (see subsection (4)) from the result of step 2.
Step 4 The earnings rate for the employment for the year is given by the formula—
R × Y E
where—
R is the result of step 3,
Y is the number of days in the year, and
E is the number of days in the year when the employment is held.
(2) Section 290C(2) (provisions of benefits code not applicable to lower-paid ministers of religion) is to be disregarded for the purpose of determining any amount under step 1.
(3) If the benefit of living accommodation is to be taken into account under step 1, the cash equivalent is to be calculated in accordance with section 105 (even if the cost of providing the accommodation exceeds £75,000).
(4) For the purposes of step 3 “authorised deduction” means any deduction that would (assuming it was an amount of taxable earnings) be allowed from any amount within step 1 under—
section 346 (employee liabilities),
section 370 (travel costs and expenses where duties performed abroad: employee's travel),
section 371 (travel costs and expenses where duties performed abroad: visiting spouse's, civil partner's or child's travel),
section 373 (non-resident or qualifying new resident employee's travel costs and expenses where duties performed in UK),
section 374 (non-resident or qualifying new resident employee's spouse's, civil partner's or child's travel costs and expenses where duties performed in UK),
section 376 (foreign accommodation and subsistence costs and expenses (overseas employments)),
section 713 (payroll giving to charities),
sections 188 to 194 of FA 2004 (contributions to registered pension schemes), or
section 262 of CAA 2001 (capital allowances to be given effect by treating them as deductions).
290F Extra amounts to be added in connection with a car
(1) The provisions of this section apply for the purposes of section 290E in the case of a tax year in which a car is made available as mentioned in section 114(1) (cars, vans and related benefits) by reason of the employment.
(2) Subsection (3) applies if in the tax year—
(a) an alternative to the benefit of the car is offered, and
(b) the amount that would be earnings within Chapter 1 of Part 3 if the benefit of the car were to be determined by reference to the alternative offered exceeds the benefit code earnings (see subsection (4)).
(3) The amount of the excess is an extra amount to be added under step 2 in section 290E(1).
(4) For the purposes of subsection (2) “the benefit code earnings” is the total for the year of—
(a) the cash equivalent of the benefit of the car (calculated in accordance with Chapter 6 of Part 3 (taxable benefits: cars, vans etc)), and
(b) the cash equivalent (calculated in accordance with that Chapter) of the benefit of any fuel provided for the car by reason of the employment.
(5) Section 290C(2) (provisions of benefits code not applicable to lower-paid ministers of religion) is to be disregarded for the purpose of determining any amount under this section.
(1) This section applies if a person is employed in two or more related employments.
(2) None of the employments is to be regarded as lower-paid employment as a minister of religion in relation to a tax year if—
(a) the total of the earnings rates for the employments for the year (calculated in each case under section 290E) is £8,500 or more, or
(b) any of them is an employment falling outside the exclusion contained in section 290C(2) (provisions of benefits code not applicable to lower-paid ministers of religion).
(3) For the purposes of this section two employments are “related” if—
(a) both are with the same employer, or
(b) one is with a body or partnership (“A”) and the other is either—
(i) with an individual, partnership or body that controls A (“B”), or
(ii) with another partnership or body also controlled by B.
(4) Section 69 (extended meaning of “control”) applies for the purposes of this section as it applies for the purposes of the benefits code.
291 Termination payments to MPs and others ceasing to hold office
(1) No liability to income tax in respect of earnings arises by virtue of any grant or payment to which this section applies (but see Chapter 3 of Part 6: payments and benefits on termination of employment etc.).
(2) This section applies to grants and payments—
(a) made under section 5(1) of the Parliamentary Standards Act 2009 in connection with a person's ceasing to be a member of the House of Commons,
(b) made under section 4 of the Ministerial and other Pensions and Salaries Act 1991 (c. 5) (grants to persons ceasing to hold certain ministerial and other offices),
(c) made under section 3 of the European Parliament (Pay and Pensions) Act 1979 (c. 50) (resettlement grants for persons ceasing to be Representatives), or under Article 13 of the Statute for Members of the European Parliament (transitional allowances),
(d) made under section 81(3) of the Scotland Act 1998 (c. 46) to a person—
(i) ceasing to be a member of the Scottish Parliament on its dissolution, or
(ii) ceasing to hold an office corresponding to a relevant office,
(e) made under section 20(3) of the Government of Wales Act 2006 to a person—
(i) ceasing to be a member of the National Assembly for Wales; or
(ii) ceasing to hold office as the Presiding Officer, Deputy Presiding Officer, or such other office in connection with the Assembly as the Assembly may determine, but continuing to be an Assembly Member,
(ea) made under section 53(3) of the Government of Wales Act 2006 to a person ceasing to be a member of the Welsh Assembly Government...
(f) made under section 48(1) of the Northern Ireland Act 1998 (c. 47) to a person—
(i) ceasing to be a member of the Northern Ireland Assembly on its dissolution, or
(ii) ceasing to hold an office corresponding to a relevant office, or
(g) made under section 26A of the Greater London Authority Act 1999 (payments on ceasing to hold office as Mayor of London or as a member of the London Assembly).
(3) In this section “a relevant office” has the same meaning as in section 4 of the Ministerial and other Pensions and Salaries Act 1991.
(1) No liability to income tax arises in respect of a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 if the payment is—
(a) expressed to be made in respect of accommodation expenses, or
(b) related to or in consequence of a payment expressed to be so made.
(2) “Accommodation expenses” means expenses necessarily incurred on overnight accommodation that is required for the performance of the member's parliamentary duties in or about the Palace of Westminster or the member's constituency.
(3) But the cost of an overnight stay in a hotel that was required only because, on that night, the member had been required to be at the House of Commons because the House was sitting late does not count as accommodation expenses for the purposes of this section, unless the member had been required to be at the House because it was sitting beyond 1 a.m.
(4) Subsection (1) does not apply to a loan for a deposit payable at the commencement of a tenancy.
(5) The reference in subsection (1) to a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 includes a payment made under that section to another person at the direction of a member (see section 6(7) of that Act).
293 Overnight expenses of other elected representatives
(1) No liability to income tax arises in respect of a payment to which this section applies if it is expressed to be made in respect of a member’s necessary overnight expenses.
(2) This section applies to payments—
(a) made to members of the Scottish Parliament under section 81(2) of the Scotland Act 1998 (c. 46),
(b) made to members of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or to a member of the Welsh Assembly Government under section 53(2) of that Act, or
(c) made to members of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998 (c. 47).
(3) In this section “a member’s necessary overnight expenses” means additional expenses necessarily incurred by a member for the purpose of performing duties as a member in staying overnight away from the member’s only or main residence—
(a) in the area in which the Parliament or Assembly to which the member belongs sits, or
(b) in the constituency or region which the member represents.
(1) No liability to income tax arises in respect of a payment made to a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009 if the payment is expressed to be made—
(a) in respect of relevant UK travel expenses, or
(b) in respect of relevant subsistence expenses.
(2) “Relevant UK travel expenses” means expenses necessarily incurred on journeys of the following kinds within the United Kingdom—
(a) journeys made by the member that are necessary for the performance of the member's parliamentary duties, and
(b) if the member shares caring responsibilities with a spouse or partner, journeys made by the spouse or partner between the member's London Area residence and the member's constituency residence.
(3) “Relevant subsistence expenses” means expenses necessarily incurred on an evening meal (excluding alcoholic drinks) eaten on the Parliamentary Estate, where the member is required to be at the House of Commons because the House is sitting beyond 7.30 p.m.
(4) “Caring responsibilities” and “London Area” have the same meaning in subsection (2)(b) as they have in the scheme in effect for the time being under section 5 of the Parliamentary Standards Act 2009.
293B UK travel expenses of other elected representatives
(1) No liability to income tax arises in respect of a payment to which this section applies if it is expressed to be made in respect of relevant UK travel expenses.
(2) This section applies to payments—
(a) made to members of the Scottish Parliament under section 81(2) of the Scotland Act 1998,
(b) made to members of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or to a member of the Welsh Assembly Government under section 53(2) of that Act, or
(c) made to members of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998.
(3) In this section “relevant UK travel expenses” means expenses necessarily incurred on journeys of the following kinds within the United Kingdom—
(a) journeys within subsection (4) made by the member that are necessary for the performance of his or her duties as a member;
(b) if the member shares caring responsibilities with a spouse or partner, journeys made by the spouse or partner between the constituency or region and the member's parliamentary home.
(4) The journeys referred to in subsection (3)(a) are those—
(a) between the constituency or region and the Parliament or Assembly to which the member belongs,
(b) between the constituency or region and the member's parliamentary home, or
(c) within the constituency or region, but not excluded by subsection (5).
(5) A journey is excluded if—
(a) in the case of a member who has only one local office, it is between the member's local home and that office, and
(b) in any other case, it is between the member's local home and the principal local office.
(6) In this section—
“constituency or region”, in relation to a member, means the constituency or region which the member represents and the area within 20 miles of the boundary of that constituency or region;
“local office”, in relation to a member, means an office which is situated in the constituency or region and occupied by the member for the purposes of performing duties as a member;
“the member's local home” means a residence of the member situated in the constituency or region;
“the member's parliamentary home” means the member's only or main residence in the area comprising—
the main site of the Parliament or Assembly to which the member belongs, and
the area within 20 miles of that site;
“principal local office”, in relation to a member, means the local office most frequently occupied by the member for the purposes of performing duties as a member.
(7) A person has “caring responsibilities” if the person—
(a) has parental responsibility for a dependent child aged under 17 or for a child aged 17 or 18 who is in full-time education, or
(b) is the primary carer for a family member in receipt of—
(i) attendance allowance,
(ii) disability living allowance at the middle or highest rate for personal care,
(iii) the daily living component of personal independence payment, or
(iv) constant attendance allowance at or above the maximum rate with an industrial injuries disablement benefit, or the basic (full day) rate with a war disablement pension.
(8) The Treasury may by order amend the definition of “caring responsibilities” in subsection (7).
294 European travel expenses of MPs and other representatives
(1) No liability to income tax arises in respect of a sum that is paid to—
(a) a member of the House of Commons under section 5(1) of the Parliamentary Standards Act 2009,
(b) a member of the Scottish Parliament under section 81(2) of the Scotland Act 1998,
(c) a member of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or a member of the Welsh Assembly Government under section 53(2) of that Act, or
(d) a member of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998,
and expressed to be made in respect of European travel expenses.
(2) “European travel expenses” means the cost of, and any additional expenses incurred in, travelling between the United Kingdom and a relevant European location.
(3) “Relevant European location” means—
(a) a European Union institution or agency, or
(b) the national parliament of—
(i) another member State,
(ii) a candidate or applicant country, or
(iii) any other country that is a member of the Council of Europe.
(4) The Treasury may by order amend subsection (3) by—
(a) adding a European location,
(b) removing a European location, or
(c) varying the description of a European location.