Section 228A — Income Tax (Earnings and Pensions) Act 2003: General exclusion from exemptions: optional remuneration arrangements

General exclusion from exemptions: optional remuneration arrangements 228A 1 A relevant exemption does not apply (whether to prevent liability to income tax from arising or to reduce liability to income tax) in respect of a benefit or facility so far as the benefit or facility is provided pursuant to optional remuneration arrangements.

2 For the purposes of subsection (1) it does not matter whether the relevant exemption would (apart from that subsection) have effect as an employment income exemption or an earnings-only exemption.

3 For the purposes of this section an exemption conferred by this Part is a “relevant exemption” unless it is—

a a special case exemption (see subsection (4)), or b an excluded exemption (see subsection (5)). 4 “ Special case exemption ” means an exemption conferred by any of the following provisions—

a section 289A (exemption for paid or reimbursed expenses);

b section 289D (exemption for other benefits);

c section 308B (independent advice in respect of conversions and transfers of pension scheme benefits);

d section 312A (limited exemption for qualifying bonus payments);

e section 317 (subsidised meals);

f section 320C (recommended medical treatment);

g section 323A (trivial benefits provided by employers). 5 “ Excluded exemption ” means an exemption conferred by any of the following provisions—

a section 239 (payments and benefits connected with taxable cars and vans and exempt heavy goods vehicles);

b section 244 (cycles and cyclist's safety equipment);

c section 266(2)(c) (non-cash voucher regarding entitlement to exemption within section 244);

d section 270A (limited exemption for qualifying childcare vouchers);

e section 307 (death or retirement provision), so far as relating to provision made for retirement benefits;

f section 308 (exemption of contribution to registered pension scheme);

g section 308A (exemption of contributions to overseas pension scheme);

h section 308C (provision of pensions advice);

i section 309 (limited exemptions for statutory redundancy payments);

j section 310 (counselling and other outplacement services);

k section 311 (retraining courses);

l section 318 (childcare: exemption for employer-provided care);

m section 318A (childcare: limited exemption for other care).

6 In subsection (5) “ retirement benefit ” has the meaning that would be given by subsection (2) of section 307 if “or death” were omitted in both places where it occurs in that subsection.

7 In this section “ benefit or facility ” includes anything which constitutes employment income or in respect of which employment income is treated as arising to the employee (regardless of its form and the manner of providing it).

8 In this section “ optional remuneration arrangements ” has the same meaning as in the benefits code (see section 69A).

9 The Treasury may by order amend subsections (4) and (5) by adding or removing an exemption conferred by Part 4.