Income Tax (Earnings and Pensions) Act 2003 section 37

Retraining courses [ITEPA 2003 Sch 7 para 37]

Section 37 of Schedule 7 provides transitional rules ensuring that the repeal of certain old ICTA provisions relating to retraining courses does not disturb tax liabilities already determined under those provisions for years before 2003-04.

• The repeal of the old ICTA retraining course rules does not affect tax liabilities for years before 2003-04 that were determined under those rules.
• Where a person was assumed to fall within the old retraining relief provisions for a pre-2003-04 tax year, the old rules continue to govern that determination.
• The clawback mechanism under section 588(6) of ICTA is preserved for these pre-2003-04 cases, but is read as referring to a breach of the old ICTA conditions rather than the new ITEPA 2003 conditions.
• This ensures a seamless transition so that individuals and HMRC are not disadvantaged by the shift from ICTA to ITEPA 2003.

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