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4. Taxable benefits (application of Chapters 5, 6 and 7 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003)

Budget Resolutions and Economic Situation — Amendment of the Law – in the House of Commons at 6:23 pm on 22nd March 2016.

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Resolved,

That—

(1) Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.(2) In section 97 (living accommodation to which Chapter 5 applies), after subsection (1) insert—

“(1A) In determining for the purposes of this Chapter whether this Chapter applies to living accommodation provided for an individual it is immaterial whether or not the terms on which it is provided constitute a fair bargain.”

(3) In section 114 (cars, vans and related benefits to which Chapter 6 applies), after subsection (1) insert—

“(1A) In determining for the purposes of this Chapter whether this Chapter applies by virtue of subsection (1) to a car or van made available to an individual it is immaterial whether or not the terms on which the car or van is made available constitute a fair bargain.”

(4) For section 117 substitute—

“117 Meaning of car or van made available by reason of employment

(1) For the purposes of this Chapter a car or van made available by an employer to an employee or member of an employee’s family or household is to be regarded as made available by reason of the employment unless subsection (2) or (3) excludes the application of this subsection.(2) Subsection (1) does not apply where—

(a) the employer is an individual, and

(b) the car or van is made available in the normal course of the employer’s domestic, family or personal relationships.

(3) Subsection (1) does not apply where—

(a) the employer carries on a vehicle hire business under which cars or vans of the same kind are made available to members of the public for hire,

(b) the car or van in question is hired to the employee or member in the normal course of that business, and

(c) in hiring that car or van the employee or member is acting as an ordinary member of the public.”

(5) In section 173 (loans to which Chapter 7 applies), after subsection (1) insert—

“(1A) In determining for the purposes of this Chapter whether a loan is an employment-related loan it is immaterial whether or not the terms of the loan constitute a fair bargain.”

(6) The amendments made by this Resolution have effect for the tax year 2016-17 and subsequent tax years.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.