Section 227 — Income Tax (Earnings and Pensions) Act 2003: Scope of Part 4

Scope of Part 4 227 1 This Part contains—

a earnings-only exemptions, and b employment income exemptions.

2 In this Act “ earnings-only exemption ” means an exemption from income tax which—

a prevents liability to tax arising in respect of earnings, either by virtue of one or more particular provisions (such as a Chapter of the benefits code) or at all, and b does not prevent liability to tax arising in respect of other employment income.

3 In this Act “ employment income exemption ” means an exemption from income tax which prevents liability to tax arising in respect of employment income of any kind at all.

4 The following provisions in Part 7 also confer exemption from liability to income tax in respect of earnings—

za section 418(1A) (acquisition of, and chargeable events occurring in relation to, employment-related securities options); a section 425 (restricted securities: no charge in respect of acquisition in certain circumstances),

b section 475 (no charge in respect of acquisition of securities option),

c sections 489 to 493 and sections 496 to 499 (... share incentive plans),

d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e section 519 (... SAYE option schemes: no charge in respect of exercise of option),

f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g section 524 (... CSOP schemes: no charge in respect of exercise of option),

h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i section 542 (priority share allocations: exemption where offer made to public and employees),

and j section 544 (priority share allocations: exemption where different offers made to public and employees).

5 In relation to the interaction between this Part and Part 7A, see section 554P(1).