Statutory Instrument 1996 No. 830

The Income Tax (Charge to Tax) (Payments out of Surplus Funds) (Relevant Rate) Order 1996

---

© Crown Copyright 1996

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Income Tax (Charge to Tax) (Payments out of Surplus Funds) (Relevant Rate) Order 1996, ISBN 0110544455. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1996 No. 830

INCOME TAX

The Income Tax (Charge to Tax) (Payments out of Surplus Funds) (Relevant Rate) Order 1996

The Treasury, in exercise of the powers conferred on them by section 599A(4) of the Income and Corporation Taxes Act 1988^[1], hereby make the following Order:

    1.    This Order may be cited as the Income Tax (Charge to Tax) (Payments out of Surplus Funds) (Relevant Rate) Order 1996 and shall come into force on 6th April 1996.

    2.    The relevant rate for the purposes of section 599A(2) of the Income and Corporation Tax Act 1988 shall, in relation to payments made on or after 6th April 1996, be 34 per cent.

Simon Burns

Liam Fox

Two of the Lords Commissioners of Her Majesty's Treasury

18th March 1996

Section 599A of the Income and Corporation Taxes Act 1988 ("section 599A") (as inserted by paragraph 12 of Schedule 6 to the Finance Act 1989) provides, in subsection (2), that where a payment of surplus additional voluntary contributions is returned to an employee or to his personal representatives, the administrator of the scheme shall be charged to income tax under Case VI of Schedule D at the relevant rate on such amount as, after deduction of tax at that rate, would equal the amount of the payment. Subsection (3) of section 599A provides that, subject to subsection (4) of that section, the relevant rate shall be 35 per cent. Subsection (4) of section 599A provides that the Treasury may by Order from time to time increase or decrease the relevant rate.

For the years of assessment since section 599A was enacted the relevant percentage has accordingly been a percentage 10 per cent. higher than the percentage at which income tax at the basic rate has been charged. For the 1996-97 year of assessment it is envisaged that income tax will be charged at the basic rate of 24 per cent. This Order reduces the relevant rate to 34 per cent.

[1] 1988 c. 1; section 599A was inserted by paragraph 12 of Schedule 6 to the Finance Act 1989 (c. 26). back