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Taxation of certain perquisites.
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21.—As respects the year of assessment 2001 and subsequent years of assessment, the Principal Act is amended in Chapter 1 of Part 5 by the insertion of the following section after section 112:
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“112A.—(1) In this section—
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‘appropriate percentage’, ‘authorised insurer’, ‘relevant contract’ and ‘relievable amount’ have the same meanings, respectively, as in section 470, and
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‘qualifying insurer’ and ‘qualifying long-term care policy’ have the same meanings, respectively, as in section 470A.
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(2) Section 112 shall apply in relation to a perquisite comprising the payment to—
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(a) an authorised insurer under a relevant contract, or
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(b) a qualifying insurer under a qualifying long-term care policy
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as if any deduction authorised by—
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(i) in a case in which paragraph (a) applies, section 470(3)(a), or
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(ii) in a case in which paragraph (b) applies, section 470A(8)(a),
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had not been made.
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(3) Where, for any year of assessment, an employer (within the meaning of section 983)—
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(a) makes a payment of emoluments consisting of a perquisite of the kind mentioned in subsection (2), and
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(b) deducts therefrom and retains in accordance with—
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(i) section 470(3)(a), an amount equal to the appropriate percentage for the year of assessment of the relievable amount in relation to the payment, or
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(ii) section 470A(8)(a), an amount equal to the appropriate percentage for the year of assessment of the payment,
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the employer shall be assessed and charged to income tax in an amount equal to the amount so deducted and retained and that amount shall be allowable as a deduction in charging to tax the profits or gains of such employer.
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(4) Subsections (3) to (6) of section 238 shall apply, with necessary modifications, in relation to a payment referred to in subsection (3) as they apply in relation to a payment to which that section applies.”.
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