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Relief arising in special circumstances
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14. (1) The Principal Act is amended by inserting the following after section 480A:
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“Relief arising in special circumstances
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480B. (1) Subject to subsection (12), this section applies where emoluments—
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(a) which are chargeable to income tax under subsection (3) of section 112, and
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(b) from which income tax has been deducted in accordance with the provisions of Chapter 4 of Part 42 and any regulations made thereunder,
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are paid on 31 December in a tax year or, if that year is a leap year, on 30 or 31 December in that year (referred to in this section as the ‘relevant date’) to an individual who is paid weekly or fortnightly.
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(2) Subject to subsections (4) and (5), a reduction, deduction or tax credit provided for under a provision specified in subsection (3) which is applicable to the individual concerned shall be increased by—
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(a) one fifty-second of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid weekly and is so paid on the relevant date, or
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(b) one twenty-sixth of the amount of the reduction, deduction or tax credit, as the case may be, where the individual is paid fortnightly and is so paid on the relevant date.
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(3) The provisions referred to in subsection (2) are sections 461, 461A, 462B, 463, 464, 465, 466, 466A, 468, 470(2), 472, 472AB, 472B and 472BA.
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(4) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows—
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A + B
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where—
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A is the amount by which the reductions and deductions applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, and
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B is the amount by which the tax credits applicable to the individual concerned are increased in accordance with paragraph (a) or (b) of subsection (2), as the case may be, divided by the standard rate of tax for the tax year,
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the amount of the increase effected by subsection (2) shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date.
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(5) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (2) shall be the greater of the increase resulting from—
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(a) the application of subsections (2) and (4) to the weekly payment only, and
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(b) the application of subsections (2) and (4) to the fortnightly payment only.
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(6) Subject to subsections (8) and (9), the part of taxable income specified in the first row of column (1) of Parts 1, 2 and 3 of the Table to section 15 shall be increased by—
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(a) one fifty-second of the amount specified, where the individual concerned is paid weekly and is so paid on the relevant date, or
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(b) one twenty-sixth of the amount specified, where the individual concerned is paid fortnightly and is so paid on the relevant date.
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(7) Subject to subsections (8) and (9), where—
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(a) subsection (3) of section 15 applies, and
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(b) this section applies both in respect of—
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(i) emoluments paid to the individual concerned which are charged to tax for a year of assessment in accordance with section 1017 or 1031C, and
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(ii) emoluments paid to the spouse or civil partner of the individual referred to in subparagraph (i),
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the amount specified in subparagraph (i) of section 15(3) shall be increased by—
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(I) one fifty-second of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid weekly and is so paid on the relevant date, or
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(II) one twenty-sixth of the amount specified, where the spouse or civil partner of the individual referred to in subparagraph (i) is paid fortnightly and is so paid on the relevant date.
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(8) Where the emoluments paid to the individual concerned on the relevant date are less than the amount calculated as follows—
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A + B
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where—
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A is the amount by which the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 is increased in accordance with subsection (6), and
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B is the amount, if any, by which the amount specified in subparagraph (i) of section 15(3) is increased in accordance with subsection (7),
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the aggregate amount of the increase to the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 effected by the application of subsection (6) and, to the extent that it is applicable, subsection (7), shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date.
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(9) Where the individual concerned or their spouse or civil partner is, or both the individual and their spouse or civil partner are, paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by the application of subsections (6), (7) and (8) shall be the greatest of the amounts which result from the application of those subsections to each of the possible permutations of only one of the two payments to the individual or their spouse or civil partner, as the case may be, being taken into account for the purpose of calculating the increase effected by the application of those subsections.
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(10) Subject to subsection (11), where section 188 applies, the specified amount (within the meaning of that section) shall be increased by—
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(a) one fifty-second of the specified amount, where the individual concerned is paid weekly and is so paid on the relevant date, or
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(b) one twenty-sixth of the specified amount, where the individual concerned is paid fortnightly and is so paid on the relevant date,
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but the amount of any such increase shall not exceed the amount of the emoluments paid to the individual on the relevant date.
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(11) Where the individual concerned is paid weekly and fortnightly on a relevant date in a tax year, the amount of the increase effected by subsection (10) shall be the greater of the increase resulting from—
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(a) the application of that subsection to the weekly payment only, and
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(b) the application of that subsection to the fortnightly payment only.
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(12) This section shall not apply where—
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(a) the normal day on which emoluments are paid to the individual concerned during a tax year changes either during that year or the preceding year, or
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(b) a payment of emoluments occurs on a relevant date and that date is not the normal day on which emoluments are paid to the individual concerned.
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(13) A reference in subsection (12) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which emoluments are paid to the individual concerned.”.
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(2) Subsection (1) applies for the year of assessment 2018 and each subsequent year of assessment.
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