Income Tax (Earnings and Pensions) Act 2003 section 228

Effect of exemptions on liability under provisions outside Part 2

Section 228 clarifies which employment income exemptions in Part 4 of the Act have a wider effect, preventing income tax liability not only under Part 2 but under any tax legislation, and which exemptions only remove a charge under Part 2.

• Most exemptions in Part 4 only remove a liability to income tax under Part 2 (the main employment income charging provisions) and do not affect charges arising under other parts of the tax legislation.
• A specified list of exemptions has a broader reach, preventing any income tax liability from arising under any enactment — these include exemptions for transport during public transport strikes, late-night travel home, annual parties, long service awards, small third-party gifts, and certain pension advice benefits.
• Chapter 8 exemptions for special kinds of employees (such as Members of Parliament, consular officers, and visiting forces) generally have this wider effect, but specific exceptions apply to certain provisions relating to ministers of religion, termination payments to MPs, and carers' board and lodging.
• Exemptions for incidental transfer expenses not normally met by the transferor (section 326) and for independent advice on pension scheme conversions and transfers (section 308B) also carry this wider protection from income tax liability.