| Benefits Code I and Exemptions and Exclusions |
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15A.5 Exemptions and Exclusions |
One of the more striking features of the ITEPA is the decision to place exemptions from income tax in a separate part, part 4 (sections 227–326). The advantage of this is that gather exemption together whether they are from all parts of the charge or only from heads. The disadvantage is the same as the advantage; gathering these things together when the charge is only from one head makes little sense except to emphasise the diverse or chaotic nature of employment income tax. The interaction between an exemption and a deduction is also highlighted. |
Part 4 begins with some new terminology. Earnings-only exemptions are defined by section 227(2) as an exemption which prevents liability to tax arising in respect of earnings either (a) by virtue of one or more provision or (b) at all and (c) does not prevent liability from arising under in respect of other employment income. Employment income exemption means an exemption which prevents liability to tax is respect of employment income at all. Perhaps the legislation could have said particular exemption and general exemption but that would be too easy. |
15A.5.1 Relocation Benefits and Expenses |
Chapter 7 (sections 271–289) (previously TA 1988, schedule 11A) was introduced in 1993 to replace earlier concessionary reliefs,81 grants relief for certain sums paid, whether to the employees, or another on their behalf (eg the removal company) in respect of various benefits and expense. The present limit is ceiling of £8,00082 may be increased by Treasury Order;83 this figure has not been increased since 1993. Payments must be made or benefits provided before the end of the year following the year in which the employment is changed or moved, or a new job started; this day is now called the limitation |