172.-Exceptions from tax.

(1) Profit-related pay shall not be exempt from income tax by virtue of section 171 if-

    (a) it is paid to an employee in respect of his employment in an employment unit during a time when he also has another employment; and
    (b) he receives in respect of that other employment during that time profit-related pay which is exempt from income tax by virtue of that section.

(2)
Subject to subsection (3) below, profit-related pay in respect of which no secondary Class 1 contributions under Part I of the [Social Security Contributions and Benefits Act 19925] or Part I of the [Social Security Contributions and Benefits (Northern Ireland) Act 19925] are payable shall not be exempt from income tax by virtue of section 171.
(3) Subsection (2) above shall not apply to profit-related pay in respect of which no [secondary Class 1 contributions 6] are payable only because the employee's earnings are below the [secondary threshold7 6] for such contributions 8.

Registration9

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5 See Social Security (Consequential Provisions) Act 1992 (c.6), s.2(4) and Social Security (Consequential Provision) (Northern Ireland) Act 1992 (c.9) s.2(4)-any reference to a provision of an enactment repealed by that Act to be construed, so far as required for continuing its effect, as a reference to the corresponding provision of that Act. .See 1998 edition for previous wording.

6 Social Security Act 1998 Sch.7 para.16 with effect on and after 6 April 1999 (by virtue of S.I.1999 No. 418(C.8)(not reproduced) art.2(2),(3)(a). Previously "Class 1 contributions".

7 Welfare Reform and Pensions Act 1999(c.30) Sch.12 paras.73,74 with effect on and after 6 April 2000 (by virtue of S.I. 1999 No.3420 (not reproduced) art.4(b),(d)). Previously "earnings threshold(ax)".
(ax) Social Security Act 1998 Sch.7 para.16 with effect on and after 6 April 1999 (by virtue of S.I.1999 No. 418(C.8)(not reproduced) art.2(2),(3)(a). Previously "Class 1 contributions".

8 See 1997 s.61 and Sch.18 Pt.VI(3) and 1998 Sch.11 (transitional)-relief to be phased out: no-relief in relation to payments made by reference to profit periods beginning on or after 1 January 2000.

9 See 1997 s.61(3)-registration to end on 31 December 2000.