Finance Act, 1993

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Reliefs in respect of tax charged on payments on retirement, etc.

8.—As respects payments made on or after the 6th day of May, 1993, the Income Tax Act, 1967 , is hereby amended—

(a) in section 115 (as amended by section 7 )—

(i) by the substitution in subsection (3) (including the proviso thereto) of—

(I) “not exceeding the basic exemption” for “not exceeding £6,000”,

(II) “the amount of the said basic exemption” for “the said sum of £6,000”, and

(III) “the amount of the said basic exemption” for “the said sum”,

and

(ii) by the insertion of the following subsection after subsection (5):

“(5A) In this section and in Schedule 3 ‘the basic exemption’ means £6,000 together with £500 for each complete year of the service, up to the relevant date, of the holder in the office or employment in respect of which the payment is made.”,

and

(b) in Schedule 3—

(i) by the substitution in paragraph 3 of “the basic exemption” for “£6,000”,

(ii) by the substitution in subparagraph (b) of paragraph 4 of “one-fifteenth” for “one-twentieth”, and

(iii) by the substitution in the second proviso to paragraph 6 of “the basic exemption” for “£6,000” in both places where it occurs.