SCHEDULES

SCHEDULE 6Consequential Amendments

Part 2Other enactments

Capital Allowances Act 2001 (c. 2)

246

The Capital Allowances Act 2001 is amended as follows.

247

1

Amend section 4 (capital expenditure) as follows.

2

For subsection (2)(b) substitute—

b

any expenditure or sum that may be allowed as a deduction under a relevant provision from the taxable earnings from an employment or office held by the person.

3

After subsection (2) insert—

2A

In subsection (2)—

“relevant provision” means any of the following—

a

section 262;

b

section 232 of ITEPA 2003 (giving effect to mileage allowance relief);

c

Chapters 2 to 6 of Part 5 of that Act (general deductions allowed from earnings); and

d

sections 613(1), 619 and 639 of ICTA (contributions to pensions funds etc.), and

“taxable earnings” has the meaning given by section 10 of ITEPA 2003.

4

In subsection (3) for “emoluments” substitute “ earnings ”.

248

1

Amend section 20 (employments and offices) as follows.

2

In subsection (2)—

a

for “emoluments” substitute “ earnings ”; and

b

for “do not fall within Case I or II of Schedule E” substitute “ fall within section 22 or 26 of ITEPA 2003 ”.

3

In subsection (3)—

a

for “those emoluments” substitute “ those earnings ”; and

b

for “other emoluments” substitute “ other taxable earnings (as defined by section 10 of ITEPA 2003) ”.

249

In section 61(2) (disposal events and disposal values), in entry 2(b) of the Table, for “Schedule E” substitute “ ITEPA 2003 ”.

250

In section 63(1) (cases in which disposal value is nil) for “Schedule E” substitute “ ITEPA 2003 ”.

251

In section 72(3) (disposal values), in entry 2(b) of the Table, for “Schedule E” substitute “ ITEPA 2003 ”.

252

In section 88(c) (sales at under-value) for “Schedule E” substitute “ ITEPA 2003 ”.

253

In section 262 (employments and offices)—

a

in paragraph (a) for “an amount to be deducted from the emoluments of” substitute “ a deduction from the taxable earnings from ”; and

b

in paragraph (b) for “an emolument” substitute “ earnings ”.

254

In section 423(1) (disposal value for sections 421 and 422), in entry 2(b) of the Table, for “Schedule E” substitute “ ITEPA 2003 ”.

255

At the end of Part 1 of Schedule 1 (abbreviations) insert—

ITEPA 2003

The Income Tax (Earnings and Pensions) Act 2003

F1256

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