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Employee allowance.
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7.—As respects the year of assessment 1999-2000 and subsequent years of assessment, the Principal Act is hereby amended—
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(a) in the Table to section 458—
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(i) by the deletion of “section 472” from Part 1, and
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(ii) by the insertion, in Part 2, of “section 472” after “section 462” (inserted by this Act),
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and
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(b) in section 472—
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(i) in subsection (1)(a):
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(I) by the insertion before the definition of “emoluments” of the following definition—
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“appropriate percentage', in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;”,
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and
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(II) by the insertion after the definition of “proprietary director” of the following definition—
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“‘the specified amount’, in relation to an individual for a year of assessment, means the lesser of—
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(a) £1,000, or
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(b) the amount which is included in the individual's total income for the year of assessment in respect of emoluments,
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and, in the case where the claimant is a married person assessed to tax in accordance with section 1017, the specified amount in relation to the individual's spouse shall be the amount which would have been the specified amount in relation to that spouse if he or she had been assessed in accordance with section 1016;”,
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(ii) by the substitution of the following for subsection (4):
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“(4) Where, for any year of assessment, a claimant proves that his or her total income for the year consists in whole or in part of emoluments, the income tax to be charged on the individual, other than in accordance with section 16(2), for that year of assessment shall be reduced by an amount which is the lesser of—
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(a) an amount equal to the appropriate percentage of the specified amount in relation to that individual and, where the claimant is a married person assessed to tax in accordance with section 1017, the specified amount in relation to that individual's spouse, or
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(b) the amount which reduces that income tax to nil.”,
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and
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(iii) by the substitution of the following for subsection (5):
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“(5) Where a reduction under this section is to be made from income charged to tax for any year of assessment by virtue of the operation of subsection (2), such reduction shall be given by means of repayment of tax.”.
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