Statutory Instruments
2016 No. 1036
Income Tax
The Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) (Amendment) Regulations 2016
Made
31st October 2016
Laid before the House of Commons
1st November 2016
Coming into force
1st December 2016
The Commissioners for Her Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by section 393B(3)(d) and (4A) of the Income Tax (Earnings and Pensions) Act 2003( 1 ).
Citation, commencement and effect
1. —(1) These Regulations may be cited as the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) (Amendment) Regulations 2016 and come into force on 1st December 2016.
(2) The amendments in regulations 3 and 4 have effect for the tax year 2016-17 and subsequent tax years.
Amendment of the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007
2.The Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007( 2 ) are amended as follows.
3. After regulation 3(2)(cd)( 3 ) insert—
“ (ce) in the case of the benefits described in paragraph 22 (trivial benefits) of the Schedule—
(i) the employee ( 4 ) , and
(ii) a member of the employee’s family or household ( 5 ) . ” .
4. After paragraph 21 of the Schedule( 6 ) insert—
“ Trivial benefits
22. —(1) The provision of a benefit which would have been exempted by virtue of sections 323A and 323B of ITEPA 2003 ( 7 ) (exemption from income tax for trivial benefits provided by employers) if it had been provided in the course of the employee’s employment.
(2) For the purposes of sub-paragraph (1)—
(a) section 323A(2) of ITEPA 2003 (close company restriction) applies where—
(i) the former employer is a close company ( 8 ) when the benefit is provided, and
(ii) the former employee is—
(aa) a person who was a director or other office-holder at any time when the former employer was a close company, or
(bb) a member of the family or household of such a person, and
(b) a benefit provided to a member of the family or household of the former employee is included in the calculation of the amount allocated under section 323B(4) of ITEPA 2003 (amount allocated in respect of a benefit). ” .
Jim Harra
Jennie Granger
Two of the Commissioners for Her Majesty’s Revenue and Customs
31st October 2016
2003 c. 1 ; section 393B was inserted by section 249 of the Finance Act 2004 (c. 12) . Section 393B(3) was amended by paragraphs 101 and 102 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11) . Section 393B(4A) was inserted by paragraph 21 of Schedule 20 to the Finance Act 2007 (c. 11) .
S.I. 2007/3537 , amended by S.I. 2011/2281 ; there are other amending instruments but none is relevant.
Regulations 3(2)(ca) to (cd) were inserted by S.I. 2011/2281 .
Regulation 2 of S.I. 2007/3537 provides that a reference to an employee includes a former employee.
Family or household is defined in section 721(5) of the Income Tax (Earnings and Pensions) Act 2003.
Paragraphs 18 to 21 of the Schedule were inserted by S.I. 2011/2281 .
Sections 323A to 323C were inserted by section 13 of the Finance Act 2016 (c. 24) .
Section 989 of the Income Tax Act 2007 (c. 3) defines a “close company” for the purposes of the Income Tax Acts.