Section 723
1 The repeal of provisions and their enactment in a rewritten form in this Act does not affect the continuity of the law.
2 Paragraph 1 does not apply to any change in the law made by this Act.
3 Any subordinate legislation or other thing which—
(a) has been made or done, or has effect as if made or done, under or for the purposes of a repealed provision, and
(b) is in force or effective immediately before the commencement of the corresponding rewritten provision,
has effect after that commencement as if made or done under or for the purposes of the rewritten provision.
4 Any reference (express or implied) in any enactment, instrument or document to—
(a) a rewritten provision, or
(b) things done or falling to be done under or for the purposes of a rewritten provision,
is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding repealed provision had effect, a reference to the repealed provision or (as the case may be) things done or falling to be done under or for the purposes of the repealed provision.
5 Any reference (express or implied) in any enactment, instrument or document to—
(a) a repealed provision, or
(b) things done or falling to be done under or for the purposes of a repealed provision,
is to be read as including, in relation to times, circumstances or purposes in relation to which any corresponding rewritten provision has effect, a reference to the rewritten provision or (as the case may be) things done or falling to be done under or for the purposes of the rewritten provision.
6 Paragraphs 1 to 5 have effect instead of section 17(2) of the Interpretation Act 1978 (c. 30) (but are without prejudice to any other provision of that Act).
7 Paragraphs 4 and 5 apply only in so far as the context permits.
8 (1) The charging provisions of Chapters 4 and 5 of Part 2—
(a) apply for the purpose of determining taxable earnings from an employment in the tax year 2003-04 or any later tax year, and
(b) accordingly apply where (for the purposes of those Chapters) general earnings are received, or remitted to the United Kingdom, in that or any later tax year.
(2) But they apply to general earnings for a tax year before the tax year 2003-04, as well as to those for that or any later year.
This is subject to sub-paragraph (3).
(3) If—
(a) any general earnings within subsection (1) of section 22 (chargeable overseas earnings) or 26 (foreign earnings of resident employee) are for a tax year before 1989-90,
(b) the earnings are remitted to the United Kingdom in the tax year 2003-04 or any later tax year (“the remittance year”), and
(c) either—
(i) the employee is not resident in the United Kingdom in the remittance year, or
(ii) the employment is not held in the remittance year,
subsection (2) of section 22 or 26 does not apply to the earnings.
(4) Section 30 (treatment of earnings for year in which employment not held) does not apply where any of the tax years mentioned in subsection (2) or (3) of that section is a tax year before the tax year 1989-90.
9 (1) This paragraph applies where one or more of the earlier tax years referred to in section 35(3)(b) (treatment of delayed remittances as taxable earnings in earlier tax years) is a tax year before the tax year 2003-04.
(2) References (whether express or implied) in sections 35 and 36 to earnings constituting or being treated as taxable earnings from the employment under section 22(2) or 26(2) in such an earlier tax year are to be construed for the purposes of the charging of income tax under Case III of Schedule E in that year as references to earnings constituting or being treated as emoluments of the employment falling within that Case and received in the United Kingdom in that year.
(3) For the purposes of this paragraph the reference in sub-paragraph (2) to the receipt of income in the United Kingdom is to be construed in accordance with section 132(5) of ICTA (meaning of emoluments received in the United Kingdom).
10 Section 36(2) (the definition of “blocked earnings”) applies in relation to emoluments of the employment received in a country or territory outside the United Kingdom in a tax year before the tax year 2003-04 with the substitution of—
(a) “Emoluments” for “General earnings”, and
(b) the following paragraph for paragraph (c)—
“(c) would have constituted emoluments of the employment on which income tax would have been charged under Case III of Schedule E in that year if they had been so transferred.”
11 (1) This paragraph applies where a claimant—
(a) makes an election under section 36 for the purposes of a claim for relief under section 35, and
(b) has made a previous claim for relief under section 585 of ICTA (relief from tax on delayed remittances) in respect of delayed remittances from the same employment.
(2) Section 36(6) (limit on amount of remittances allocated to a previous tax year) applies as if, in the definition of “PC”, the reference to the amount of remittances treated as taxable earnings from the employment in the tax year in question as a result of a previous claim by the claimant under section 35 includes a reference to the amount of remittances treated as income from the employment received in the United Kingdom in that year as a result of a previous claim by the claimant under section 585 of ICTA.
(3) For the purposes of this paragraph the reference in sub-paragraph (2) to the receipt of income in the United Kingdom is to be construed in accordance with section 132(5) of ICTA (meaning of emoluments received in the United Kingdom).
12 (1) Nothing in sections 42 and 43 (disputes as to domicile or ordinary residence) has effect where the dispute relates to the amount of income charged to tax for the tax year 2002-03 or any earlier tax year.
(2) Nothing in those sections—
(a) as applied by section 645(4C) of ICTA (earnings from pensionable employment) or section 76(6E) of FA 1989 (non-approved retirement benefits schemes) has effect where the dispute relates to the amount of income charged to tax for the tax year 2002-03 or any earlier tax year, or
(b) as applied by section 9(2) of TCGA 1992 (residence, including temporary residence) has effect where the dispute relates to the amount of capital gains tax charged for the tax year 2002-03 or any earlier tax year.
(3) Accordingly, section 207 of ICTA (disputes as to domicile or ordinary residence) continues to apply to the disputes mentioned in sub-paragraphs (1) and (2) whether they arise before or after 6th April 2003.
13 In relation to times before 6th April 2003, Chapter 7 of Part 2 applies with the following modifications—
(a) references to “employment income of the worker” are to be read as references to “income of the worker chargeable to tax under Schedule E”,
(b) references to “earnings” are to be read as references to “emoluments”, and
(c) references to “this Chapter” are to be read as references to “section 134 of ICTA”.
14 Section 44(2) does not apply in relation to—
(a) payments made before 6th April 1998 other than payments made in respect of services provided on or after that date, or
(b) payments made on or after that date in respect of services provided before that date,
if in providing the services the worker is or would be a sub-contractor within the meaning of section 560 of ICTA (sub-contractors in the construction industry).
15 (1) An existing notification—
(a) is not affected by any of the repeals made by this Act, but
(b) continues in force as if it were a dispensation given under section 65 (dispensations relating to benefits within provisions not applicable to lower-paid employment),
and accordingly, where an existing notification is revoked under that section for any period before 6th April 2003, subsection (8) or (9) of that section extends to tax years before the tax year 2003-04.
(2) In this paragraph an “existing notification”—
(a) means a notification which, immediately before 6th April 2003, was in force under section 166(1) of ICTA (notice of nil liability in respect of payments, benefits or facilities); and
(b) includes a notification whose validity was preserved by subsection (4) of that section (notifications given under section 199 of FA 1970);
but a notification within paragraph (b) only continues to have effect under this paragraph in respect of any liability to tax arising by virtue of Chapter 3 (expenses) or 10 (residual liability to charge) of Part 3.
16 (1) This paragraph applies if—
(a) mileage allowance payments are made to an employee in respect of the use of a vehicle that is not a company vehicle, or
(b) mileage allowance relief is available in respect of the use by an employee of a vehicle.
(2) Any notification under section 166(1) of ICTA (notice of nil liability in respect of payments, benefits or facilities) which—
(a) was in force immediately before 6th April 2002, and
(b) has effect as a dispensation under section 65 (dispensations relating to benefits within provisions not applicable to lower-paid employment),
does not apply in relation to payments made, or benefits or facilities provided, in respect of expenses incurred in connection with the use of the vehicle by the employee for business travel.
(3) In this paragraph “business travel”, “company vehicle” and “mileage allowance payment” have the same meanings as in Chapter 2 of Part 4.
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 the Chapters of the benefits code listed in section 216(4) (provisions not applicable 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”.
(4) Where this paragraph applies, Chapter 11 of Part 3 (exclusion of lower-paid employments from parts of benefits code) does not apply.
(5) This paragraph is subject to paragraphs 18(2), 24, 27(3), 29(4) and 31(2) of this Schedule.
18 (1) For the purpose of applying sections 82 to 89 (non-cash vouchers) in relation to times before 6th April 2003, Chapter 4 of Part 3 applies with the following modification.
(2) In section 89(1)(c) (reduction for meal vouchers) substitute “an employment which is not an employment within the meaning of section 167(1)(b) of ICTA” for “lower-paid employment within the meaning of Chapter 11 of this Part (see section 217)”.
19 (1) This paragraph applies to a notification which, immediately before 6th April 2003, was in force under section 144(1) of ICTA (notice of nil liabilities in respect of vouchers or credit-tokens).
(2) The notification—
(a) is not affected by any repeals made by this Act, but
(b) continues in force as if it were a dispensation given under section 96 (dispensations relating to vouchers or credit-tokens),
and accordingly, where the notification is revoked under that section for any period before 6th April 2003, subsection (7) or (8) of that section extends to tax years before the tax year 2003-04.
20 (1) This paragraph applies if—
(a) mileage allowance payments are made to an employee in respect of the use of a vehicle that is not a company vehicle, or
(b) mileage allowance relief is available in respect of the use by an employee of a vehicle.
(2) Any notification under section 144(1) of ICTA (notice of nil liability in respect of vouchers or credit-tokens) which—
(a) was in force immediately before 6th April 2002, and
(b) has effect as a dispensation under section 96 (dispensations relating to vouchers or credit-tokens),
does not apply in relation to cash vouchers, non-cash vouchers or credit-tokens provided in respect of expenses incurred in connection with the use of the vehicle by the employee for business travel.
(3) In this paragraph “business travel”, “company vehicle” and “mileage allowance payment” have the same meanings as in Chapter 2 of Part 4.
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).
22 (1) In relation to a capital sum contributed by the employee before 6th April 2003, section 132 (cars: capital contributions by employee) applies with the following modifications.
(2) In subsection (1)(b) substitute “under sections 168A to 168C of ICTA in determining the price of the car as regards a year” for “in calculating the cash equivalent of the benefit of the car”.
(3) In subsection (2)—
(a) omit paragraph (a), and
(b) in paragraph (b) substitute “the tax years after the tax year in which the contribution was made which are” for “subsequent”.
23 (1) In relation to a capital sum contributed by the employee before 6th April 2003, section 147 (classic cars: 15 years of age or more) applies with the following modifications.
(2) In subsection (5)(b) substitute “under section 168F(3) of ICTA in determining the price of the car as regards a year” for “in determining the market value of the car”.
(3) In subsection (6)—
(a) omit paragraph (a), and
(b) in paragraph (b) substitute “the tax years after the tax year in which the contribution was made which are” for “subsequent”.
24 (1) This paragraph applies to the operation of section 156(4) (meaning of “shared van”: where van available to only one employee) in relation to times before 6th April 2003.
(2) The following references are to be read in accordance with section 66 (meaning of “employment” and related expressions) as modified by sub-paragraph (3)—
(a) the reference to an “employee” in section 156(4), and
(b) the references to “employee”, “employment” and “employer” in sections 116 and 117 (meaning of van is available to employee) as applied for the purposes of section 156(4).
(3) In section 66(1)(a) substitute “an employment the emoluments of which fall to be assessed under Schedule E” for “a taxable employment under Part 2”.
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 “not an excluded employment”, and
(b) in subsection (3)(a), substitute “an employment to which Chapter 2 of Part 5 of ICTA does not apply” for “excluded employment”.
28 Chapter 8 of Part 3 does not apply in relation to acquisitions on or before 6th April 1976.
29 (1) This paragraph relates to the operation of Chapter 8 of Part 3 in relation to an acquisition made before 6th April 2003.
(2) If—
(a) the acquisition gave rise to a notional loan under section 162(1) of ICTA, and
(b) the notional loan has not terminated under section 162(4) of ICTA before 6th April 2003,
the condition in section 193(1) (notional loan where acquisition for less than market value) is taken to be met and section 193(3) and (4) apply accordingly.
(3) In such a case, the amount initially outstanding of the notional loan for the purposes of Chapter 8 of Part 3 is taken to be the amount initially outstanding calculated under section 162 of ICTA in relation to the tax year 2002-03.
(4) In such a case, section 195(3)(c) (discharge of notional loan: amount treated as earnings) applies, in relation to times before 6th April 2003, with the substitution of “an employment to which Chapter 2 of Part 5 of ICTA applies” for “not an excluded employment”.
30 Chapter 9 of Part 3 does not apply in relation to shares or an interest in shares acquired on or before 6th April 1976.
31 (1) This paragraph relates to the operation of section 199 (disposal for more than market value: amount treated as earnings) in relation to an acquisition made before 6th April 2003.
(2) Subsection (4)(b) applies, in relation to times before 6th April 2003, with the substitution of “an employment to which Chapter 2 of Part 5 of ICTA applies” for “not an excluded employment”.
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.
33 In determining whether section 240(1) or (2) or 268 applies—
(a) in the case of a period of absence which began before 6th April 2003 and ends on or after that date, or
(b) in the case of a period of absence which begins on or after that date and incidentally to which goods, services or money are obtained using a non-cash voucher in relation to which section 141(6C) of ICTA applies,
the question whether for the purposes of section 241 the exemption provisions total exceeds the permitted amount is to be determined as if this Act had applied at any relevant time before that date.
34 In determining—
(a) whether section 141(6C) and (6D), 142(3C) and (3D), 155(1B) and (1C) or section 200A of ICTA applies in the case of a period of absence which began before 6th April 2003 and ends on or after that date, or
(b) whether section 141(6C) and (6D) applies in the case of a period of absence which begins on or after that date,
the question whether the authorised maximum (as defined in section 200A(4) of ICTA) is exceeded in relation to the absence is to be determined as if in section 200A(5) after the words “exceeded by” there were inserted the words “the aggregate of the exemption provisions total in respect of the period (as defined in section 241 of ITEPA 2003) and”.
35 (1) Section 287 (limit on exemption for removal benefits and expenses) applies with the modification in sub-paragraph (2) where—
(a) a benefit is provided on or after 6th April 2003 in connection with a change of an employee’s residence, or
(b) expenses are incurred on or after that day in connection with such a change,
and any such benefits have been provided or expenses incurred before that date in connection with that change.
(2) In subsection (2) before paragraph (a) insert—
“(aa) the total value to the employee immediately before 6th April 2003, as defined in paragraph 24(2) of Schedule 11A to ICTA,”.
36 A direction under paragraph 6(2) of Schedule 11A to ICTA (directions as to meaning of “the relevant day”) by virtue of which a day on or after 6th April 2003 was directed to be the relevant day in relation to a change of residence—
(a) is not affected by any repeals made by this Act, but
(b) continues in force as respects any benefit provided or expenses incurred on or after that date as if it were a direction given under section 274(2) (directions as to the limitation day), directing that day to be the limitation day.
37 (1) The repeal of sections 588(5)(a) and 589(3) and (4) of ICTA does not affect—
(a) the operation of section 588(5) of ICTA by virtue of paragraph (a) of that provision where liability for a tax year before 2003-04 is determined,
(b) the operation of section 588(5) of ICTA by virtue of paragraph (b) of that provision where liability is determined on the assumption that the person undertaking the course fell within section 588(1) of ICTA in such a tax year, or
(c) the operation of section 588(6) and (7) of ICTA as they apply by virtue of sub-paragraph (2).
(2) In any case where there has been such a determination as is mentioned in sub-paragraph (1)(a) or (b), section 588(6) and (7) apply as if section 588(6) referred to a failure to comply with any provision of section 589(3) or (4) of ICTA instead of a failure to meet such a condition as is mentioned in section 312(1)(b)(i) or (ii) of this Act.
38 (1) This paragraph applies for the purpose of determining the extent, if any, to which section 321(2) (exemption of suggestion awards) applies in respect of a financial benefit award for a suggestion (“the later award”) in a case where such an award (“the earlier award”) has been made for the same suggestion on a previous occasion or occasions before the tax year 2003-04.
(2) For the purposes of the application of section 322(3) in relation to the later award, “the residue of the suggestion maximum” means the suggestion maximum, as defined in section 322(4), less the aggregate of—
(a) the total of the amounts exempted from income tax under section 321 in respect of financial benefit awards for the same suggestion made on previous occasions, and
(b) the total of the earlier awards.
39 In relation to expenses incurred before the tax year 2003-04, section 353 (deductions from earnings charged on remittance) applies as if the condition in subsection (3) of that section were that the expenses would have been deductible under section 193, 194, 195 or 198(1) of ICTA from emoluments of the office or employment if those emoluments had been chargeable under Case I of Schedule E for the tax year in which the expenses were incurred.
40 In relation to any time before 6th April 2003, section 375 (meaning of “qualifying arrival date”) has effect as if the references in subsections (1)(a) and (4) to the person receiving earnings for duties performed in the United Kingdom included a reference to the person receiving emoluments for such duties.
41 (1) Chapter 2 of Part 6 (benefits from non-approved pension schemes) applies with the following modifications in relation to a benefit provided under a non-approved retirement benefits scheme which—
(a) was entered into before 1 December 1993, and
(b) has not been varied on or after that day with a view to the provision of the benefit.
(2) Section 393(2) does not apply.
(3) Section 394(5) does not apply.
(4) For sections 395, 396 and 397 substitute—
(1) Section 394 does not apply to a lump sum to the extent that the lump sum is attributable to the payment of a sum—
(a) which is deemed to be the income of a person by virtue of section 595(1) of ICTA and in respect of which that person has been assessed to tax, or
(b) which counted as the employment income of an employee by virtue of section 386(1) of this Act.
(2) For the purposes of subsection (1) it must be assumed that, unless the contrary is shown, the provision of a lump sum is not attributable to the payment of such a sum as is mentioned in that subsection.
(1) This section applies if, apart from this section, the provision of a benefit to which this Chapter applies would give rise to two amounts (“A” and “B”)—
(a) A being an amount of general earnings from an employment (see section 7), and
(b) B being an amount which is to count as employment income of an individual by virtue of section 394(1).
(2) In such a case—
(a) A constitutes general earnings from the employment, and
(b) the amount, if any, by which B exceeds A is to count as employment income of the individual by virtue of section 394(1).”
42 Section 403 (charge on payment or other benefit) does not apply in relation to payments or other benefits received on or after 6th April 2003 that were brought into charge to tax before 6th April 1998.
43 (1) This paragraph applies for the purpose of determining how the £30,000 threshold referred to in sections 403 and 404 operates where—
(a) payments or other benefits to which Chapter 3 of Part 6 apply are received, and
(b) payments or benefits to which section 148 of ICTA applied were received in respect of the same person—
(i) in respect of the same employment, or
(ii) in respect of different employments with the same employer or associated employers.
(2) For the purposes of section 403(4) and (5), section 415 (valuation of benefits) does not apply to the payments and benefits referred to in sub-paragraph (1)(b), and their aggregate amount is to be taken to be their aggregate amount immediately before 6th April 2003.
(3) The references in sections 403(4) and (5) and 404(3)(b) to payments or benefits to which Chapter 3 of Part 6 applies include references to the payments and benefits referred to in sub-paragraph (1)(b).
(4) Section 404(2) (when employers are associated) applies for the purposes of this paragraph.