Statutory Instruments
2015 No. 1667
Income Tax
The Income Tax (Pay As You Earn) (Amendment No. 3) Regulations 2015
Made
9th September 2015
Laid before the House of Commons
10th September 2015
Coming into force
1st October 2015
Citation, commencement and effect
1. —(1) These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment No. 3) Regulations 2015 and come into force on 1st October 2015.
(2) The amendments made by these Regulations have effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012( 3 ) and subsequent tax years.
Amendment of the Income Tax (Pay As You Earn) Regulations 2003
2.The Income Tax (Pay As You Earn) Regulations 2003( 4 ) are amended as follows.
3. In regulation 2 (interpretation)—
(a) in the definition of “additional rate”( 5 ) after “ITA”( 6 ) insert “, except where the employee is a Scottish taxpayer where it means the Scottish additional rate of income tax determined under section 6A of that Act”( 7 );
(b) in the definition of “basic rate” for “section 1(2)(a) of ICTA” substitute “section 6(2) of ITA, except where the employee is a Scottish taxpayer where it means the Scottish basic rate of income tax determined under section 6A of that Act”;
(c) in the definition of “higher rate” for “section 1(2)(b) of ICTA” substitute “section 6(2) of ITA, except where the employee is a Scottish taxpayer where it means the Scottish higher rate of income tax determined under section 6A of that Act”; and
(d) after the definition of “retrospective tax provision”( 8 ) insert—
“ “Scottish rate” means the rate set by the Scottish Parliament for the tax year under Chapter 2 of Part 4A of the Scotland Act 1998 (taxation) ( 9 ) ;
“Scottish taxpayer” has the same meaning as in section 989 of ITA (the definitions); ” ( 10 ).
4. In regulation 7 (meaning of “code” etc )( 11 ) after paragraph (2) insert—
“ (2A) “S code” means a code which effects deductions of tax at the rates determined under section 6A of ITA. ” .
5. In regulation 133A (interpretation of Chapter 2A)( 12 )—
(a) after “the Act” insert—
“ “basic rate”, in relation to the charging of income tax for any tax year, means the rate of income tax determined under section 6(2) of ITA; ” , and
(b) after “the Department” insert—
“ “higher rate”, in relation to the charging of income tax for any tax year, means the rate of income tax determined under section 6(2) of ITA; ” .
Jim Harra
Edward Troup
Two of the Commissioners for Her Majesty’s Revenue and Customs
9th September 2015
2003 c. 1 . Section 684 was amended, so far as relevant by paragraph 102 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c.11) , section 94 of the Finance Act 2006 and paragraphs 2 to 7 of Schedule 58 to the Finance Act 2009 (c.10) .
Paragraph 102 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11) amended section 684 of the Income Tax (Earnings and Pensions) Act 2003 so that the Commissioners for Her Majesty’s Revenue and Customs have the power to make the Regulations.
S.I. 2003/2682 (the principal Regulations); relevant amending instruments are S.I. 2006/243 , 2007/1077 , 2008/782 and 2011/729 .
The definition of additional rate was inserted into the principal Regulations by regulation 3 of S.I. 2011/729 .
The term “ITA” and the definition of that term as the Income Tax Act 2007 (c. 3) was inserted into regulation 2 of the principal Regulations by regulation 3 of S.I. 2008/782 .
2007 c. 3 ; section 6A is to be inserted into the Income Tax Act 2007 by paragraph 3 of Schedule 38 to the Finance Act 2014 (c. 26) with effect from a date to be appointed by the Treasury under section 25(5) of the Scotland Act 2012 (c. 11) .
The phrase “retrospective tax provision” was inserted into the principal Regulations by regulation 3 of S.I. 2007/1077 .
1998 c. 46 . Part 4A was inserted by section 23 of the Scotland Act 2012 and chapter 2 was inserted by section 25(3) of that Act.
The entry relating to “Scottish taxpayer” is to be inserted into section 989 by paragraph 110(b) of Schedule 38 to the Finance Act 2014 with effect from a date to be appointed by the Treasury under section 25(5) of the Scotland Act 2012.
Regulation 7 has been amended but the amendments are not relevant to these Regulations.
Chapter 2A, including regulation 133A, was inserted by regulation 3 of S.I. 2006/243 .