Finance Act, 1980
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Amendment of section 115 (exemptions and reliefs in respect of tax on certain payments on retirement or removal from office or employment) of Income Tax Act, 1967. |
10.—(1) Section 115 of the Income Tax Act, 1967 , is hereby amended— | |
(a) by the substitution for subsection (2) of the following subsection: | ||
“(2) Tax shall not be charged by virtue of section 114 in respect of a payment in respect of an office or employment in which the holder's service included foreign service where the foreign service comprised— | ||
(a) in any case, three-quarters of the whole period of service down to the relevant date, or | ||
(b) where the period of service down to the relevant date exceeded ten years, the whole of the last ten years, or | ||
(c) where the period of service down to the relevant date exceeded twenty years, one-half of that period, including any ten of the last twenty years.”, | ||
(b) by the substitution in subsection (3) of “£6,000” for “£3,000” in both places where it occurs, | ||
(c) by the deletion in subsection (7) of “, ‘payment of compensation for loss of office’”, | ||
and the said subsections (3) and (7), as so amended, are set out in the Table to this section. | ||
(2) The Schedule set out in Part II of the First Schedule shall be substituted for Schedule 3 to the Income Tax Act, 1967 . | ||
TABLE | ||
(3) Tax shall not be charged by virtue of section 114 in respect of a payment of an amount not exceeding £6,000, and in the case of a payment which exceeds that amount shall be charged only in respect of the excess: | ||
Provided that where two or more payments in respect of which tax is chargeable by virtue of that section, or would be so chargeable apart from the foregoing provisions of this subsection, are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, this subsection shall apply as if those payments were a single payment of an amount equal to that aggregate amount; and the amount of any one payment chargeable to tax shall be ascertained as follows, that is to say— | ||
(a) where the payments are treated as income of different years of assessment, the said sum of £6,000 shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year; and | ||
(b) subject as aforesaid, the said sum shall be deducted rateably from the payments according to their respective amounts. | ||
(7) In this section “the relevant date” and “foreign service” have the same meaning as in Schedule 3, and references to an employer or to a person controlling or controlled by an employer include references to his successors. |