Income Tax (Earnings and Pensions) Act 2003 (c. 1)

(The document as of February, 2008)

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(2) Nothing in those sections--

(a) as applied by section 645(4C) of ICTA (earnings from pensionable employment) or section 76(6E) of FA 1989 (non-approved retirement benefits schemes) has effect where the dispute relates to the amount of income charged to tax for the tax year 2002-03 or any earlier tax year, or

(b) as applied by section 9(2) of TCGA 1992 (residence, including temporary residence) has effect where the dispute relates to the amount of capital gains tax charged for the tax year 2002-03 or any earlier tax year.

(3) Accordingly, section 207 of ICTA (disputes as to domicile or ordinary residence) continues to apply to the disputes mentioned in sub-paragraphs (1) and (2) whether they arise before or after 6th April 2003.

Application of provisions to agency workers

13 In relation to times before 6th April 2003, Chapter 7 of Part 2 applies with the following modifications--

(a) references to "employment income of the worker" are to be read as references to "income of the worker chargeable to tax under Schedule E",

(b) references to "earnings" are to be read as references to "emoluments", and

14 Section 44(2) does not apply in relation to--

(a) payments made before 6th April 1998 other than payments made in respect of services provided on or after that date, or

(b) payments made on or after that date in respect of services provided before that date,

if in providing the services the worker is or would be a sub-contractor within the meaning of section 560 of ICTA (sub-contractors in the construction industry).

Part 3 Employment income: earnings and benefits etc. treated as earning

Taxable benefits: dispensations relating to benefits within provisions not applicable to lower-paid employments

15 (1) An existing notification--

(a) is not affected by any of the repeals made by this Act, but

(b) continues in force as if it were a dispensation given under section 65 (dispensations relating to benefits within provisions not applicable to lower-paid employment),

and accordingly, where an existing notification is revoked under that section for any period before 6th April 2003, subsection (8) or (9) of that section extends to tax years before the tax year 2003-04.

(2) In this paragraph an "existing notification"--

(a) means a notification which, immediately before 6th April 2003, was in force under section 166(1) of ICTA (notice of nil liability in respect of payments, benefits or facilities); and

(b) includes a notification whose validity was preserved by subsection (4) of that section (notifications given under section 199 of FA 1970);

but a notification within paragraph (b) only continues to have effect under this paragraph in respect of any liability to tax arising by virtue of Chapter 3 (expenses) or 10 (residual liability to charge) of Part 3.

16 (1) This paragraph applies if--

(a) mileage allowance payments are made to an employee in respect of the use of a vehicle that is not a company vehicle, or

(b) mileage allowance relief is available in respect of the use by an employee of a vehicle.

(2) Any notification under section 166(1) of ICTA (notice of nil liability in respect of payments, benefits or facilities) which--

(a) was in force immediately before 6th April 2002, and

(b) has effect as a dispensation under section 65 (dispensations relating to benefits within provisions not applicable to lower-paid employment),

does not apply in relation to payments made, or benefits or facilities provided, in respect of expenses incurred in connection with the use of the vehicle by the employee for business travel.

(3) In this paragraph "business travel", "company vehicle" and "mileage allowance payment" have the same meanings as in Chapter 2 of Part 4.

Taxable benefits: the benefits code

17 (1) In relation to times before 6th April 2003, references in the benefits code to "employment", "employed", "employee" and "employer" are to be read in accordance with this paragraph.

(2) In relation to the Chapters of the benefits code listed in section 216(4) (provisions not applicable to lower-paid employments), the references mentioned in sub-paragraph (1) are to be read in accordance with section 66 (meaning of employment and related expressions) but as if in subsection (1)(a) there were substituted "an employment to which Chapter 2 of Part 5 of ICTA applies" for "a taxable employment under Part 2".

(3) In relation to any other Chapters of the benefits code, the references mentioned in sub-paragraph (1) are to be read in accordance with section 66 but as if in subsection (1)(a) there were substituted "an employment the emoluments of which fall to be assessed under Schedule E" for "a taxable employment under Part 2".

(4) Where this paragraph applies, Chapter 11 of Part 3 (exclusion of lower-paid employments from parts of benefits code) does not apply.

(5) This paragraph is subject to paragraphs 18(2), 24, 27(3), 29(4) and 31(2) of this Schedule.

Taxable benefits: vouchers and credit-tokens

18 (1) For the purpose of applying sections 82 to 89 (non-cash vouchers) in relation to times before 6th April 2003, Chapter 4 of Part 3 applies with the following modification.

(2) In section 89(1)(c) (reduction for meal vouchers) substitute "an employment which is not an employment within the meaning of section 167(1)(b) of ICTA" for "lower-paid employment within the meaning of Chapter 11 of this Part (see section 217)".

19 (1) This paragraph applies to a notification which, immediately before 6th April 2003, was in force under section 144(1) of ICTA (notice of nil liabilities in respect of vouchers or credit-tokens).

(2) The notification--

(a) is not affected by any repeals made by this Act, but

(b) continues in force as if it were a dispensation given under section 96 (dispensations relating to vouchers or credit-tokens),

and accordingly, where the notification is revoked under that section for any period before 6th April 2003, subsection (7) or (8) of that section extends to tax years before the tax year 2003-04.

20 (1) This paragraph applies if--

(a) mileage allowance payments are made to an employee in respect of the use of a vehicle that is not a company vehicle, or

(b) mileage allowance relief is available in respect of the use by an employee of a vehicle.

(2) Any notification under section 144(1) of ICTA (notice of nil liability in respect of vouchers or credit-tokens) which--

(a) was in force immediately before 6th April 2002, and

(b) has effect as a dispensation under section 96 (dispensations relating to vouchers or credit-tokens),

does not apply in relation to cash vouchers, non-cash vouchers or credit-tokens provided in respect of expenses incurred in connection with the use of the vehicle by the employee for business travel.

(3) In this paragraph "business travel", "company vehicle" and "mileage allowance payment" have the same meanings as in Chapter 2 of Part 4.

Taxable benefits: living accommodation

21 (1) Section 107 (special rule for calculating cost of providing accommodation) does not apply if the employee first occupied the living accommodation before 31st March 1983.

(2) Nothing in this paragraph affects the operation of section 107 as applied by section 398(2)(b) or 415(2)(b).

Taxable benefits: cars, vans and related benefits

22 (1) In relation to a capital sum contributed by the employee before 6th April 2003, section 132 (cars: capital contributions by employee) applies with the following modifications.

(2) In subsection (1)(b) substitute "under sections 168A to 168C of ICTA in determining the price of the car as regards a year" for "in calculating the cash equivalent of the benefit of the car".

(3) In subsection (2)--

(a) omit paragraph (a), and

(b) in paragraph (b) substitute "the tax years after the tax year in which the contribution was made which are" for "subsequent".

23 (1) In relation to a capital sum contributed by the employee before 6th April 2003, section 147 (classic cars: 15 years of age or more) applies with the following modifications.

(2) In subsection (5)(b) substitute "under section 168F(3) of ICTA in determining the price of the car as regards a year" for "in determining the market value of the car".

(3) In subsection (6)--

(a) omit paragraph (a), and

(b) in paragraph (b) substitute "the tax years after the tax year in which the contribution was made which are" for "subsequent".

24 (1) This paragraph applies to the operation of section 156(4) (meaning of "shared van": where van available to only one employee) in relation to times before 6th April 2003.

(2) The following references are to be read in accordance with section 66 (meaning of "employment" and related expressions) as modified by sub-paragraph (3)--

(a) the reference to an "employee" in section 156(4), and

(b) the references to "employee", "employment" and "employer" in sections 116 and 117 (meaning of van is available to employee) as applied for the purposes of section 156(4).

(3) In section 66(1)(a) substitute "an employment the emoluments of which fall to be assessed under Schedule E" for "a taxable employment under Part 2".

Taxable benefits: loans

25 (1) Chapter 7 of Part 3 applies to a loan made at any time, including one made before 29th July 1976 (the date on which FA 1976 was passed).

(2) But section 188 (loan released or written off: amount treated as earnings) does not apply to benefits received in pursuance of arrangements made at any time with a view to protecting the holder of shares acquired before 6th April 1976 from a fall in their market value.

26 (1) This paragraph relates to the operation of section 183 (alternative method of calculation) in relation to section 177(2) (exceptions for loans at fixed rate of interest) in the case of a loan made before 6th April 2003.

(2) Where section 183 applies, then for the purpose of calculating under section 177(2) the amount of interest that would have been payable on the loan at the official rate of interest for the year in which the loan was made, in step 3 in section 183(3) for "the number of days in the tax year" substitute "365".

27 (1) Subject to paragraph 25(2), where a loan is made before 6th April 2003, section 188 (loan released or written off: amount treated as earnings) applies with the following modifications.

(2) References to the employment in relation to which a loan is an employment-related loan are to be read, in relation to times before 6th April 2003, as references to the employment referred to in section 174 (employment-related loans) as modified by paragraph 17.

(3) In relation to times before 6th April 2003--

(a) in subsection (2)(c), substitute "an employment to which Chapter 2 of Part 5 of ICTA applies" for "not an excluded employment", and

(b) in subsection (3)(a), substitute "an employment to which Chapter 2 of Part 5 of ICTA does not apply" for "excluded employment".

Taxable benefits: notional loans in respect of acquisitions of shares

28 Chapter 8 of Part 3 does not apply in relation to acquisitions on or before 6th April 1976.

29 (1) This paragraph relates to the operation of Chapter 8 of Part 3 in relation to an acquisition made before 6th April 2003.

(2) If--

(a) the acquisition gave rise to a notional loan under section 162(1) of ICTA, and

(b) the notional loan has not terminated under section 162(4) of ICTA before 6th April 2003,

the condition in section 193(1) (notional loan where acquisition for less than market value) is taken to be met and section 193(3) and (4) apply accordingly.

(3) In such a case, the amount initially outstanding of the notional loan for the purposes of Chapter 8 of Part 3 is taken to be the amount initially outstanding calculated under section 162 of ICTA in relation to the tax year 2002-03.

(4) In such a case, section 195(3)(c) (discharge of notional loan: amount treated as earnings) applies, in relation to times before 6th April 2003, with the substitution of "an employment to which Chapter 2 of Part 5 of ICTA applies" for "not an excluded employment".

Taxable benefits: disposals of shares for more than market value

30 Chapter 9 of Part 3 does not apply in relation to shares or an interest in shares acquired on or before 6th April 1976.

31 (1) This paragraph relates to the operation of section 199 (disposal for more than market value: amount treated as earnings) in relation to an acquisition made before 6th April 2003.

(2) Subsection (4)(b) applies, in relation to times before 6th April 2003, with the substitution of "an employment to which Chapter 2 of Part 5 of ICTA applies" for "not an excluded employment".

Taxable benefits: residual liability to charge

32 (1) This paragraph applies in relation to Chapter 10 of Part 3.

(2) In section 206, the references in subsection (4) and step 2 in subsection (5) to the cost of a benefit determined under section 205 are to be read as including a reference to the cost of a benefit determined under section 156(5) of ICTA.

(3) Sections 212, 213 and 215 do not have effect in relation to any payment if--

(a) it is made in respect of a scholarship awarded before 15th March 1983,

(b) the first payment in respect of the scholarship was made before 6th April 1984, and

(c) in relation to payments made after 5th April 1989, the person holding the scholarship ("the scholar") is receiving full-time instruction at the university, college, school or other educational establishment at which the scholar was receiving such instruction on--

(i) 15th March 1983, in a case where the first payment in respect of the scholarship was made before that date, or

(ii) the date on which the first such payment was made, in any other case.

(4) For the purposes of sub-paragraph (3)(c), a payment made before 6th April 1989 in respect of any period beginning on or after that date is treated as made at the beginning of that period.

Part 4 Employment income: exemptions

Incidental overnight expenses and benefits

33 In determining whether section 240(1) or (2) or 268 applies--

(a) in the case of a period of absence which began before 6th April 2003 and ends on or after that date, or

(b) in the case of a period of absence which begins on or after that date and incidentally to which goods, services or money are obtained using a non-cash voucher in relation to which section 141(6C) of ICTA applies,

the question whether for the purposes of section 241 the exemption provisions total exceeds the permitted amount is to be determined as if this Act had applied at any relevant time before that date.

34 In determining--

(a) whether section 141(6C) and (6D), 142(3C) and (3D), 155(1B) and (1C) or section 200A of ICTA applies in the case of a period of absence which began before 6th April 2003 and ends on or after that date, or

(b) whether section 141(6C) and (6D) applies in the case of a period of absence which begins on or after that date,

the question whether the authorised maximum (as defined in section 200A(4) of ICTA) is exceeded in relation to the absence is to be determined as if in section 200A(5) after the words "exceeded by" there were inserted the words "the aggregate of the exemption provisions total in respect of the period (as defined in section 241 of ITEPA 2003) and".

Removal benefits and expenses

35 (1) Section 287 (limit on exemption for removal benefits and expenses) applies with the modification in sub-paragraph (2) where--

(a) a benefit is provided on or after 6th April 2003 in connection with a change of an employee's residence, or

(b) expenses are incurred on or after that day in connection with such a change,

and any such benefits have been provided or expenses incurred before that date in connection with that change.

(2) In subsection (2) before paragraph (a) insert--

" (aa) the total value to the employee immediately before 6th April 2003, as defined in paragraph 24(2) of Schedule 11A to ICTA, " .

36 A direction under paragraph 6(2) of Schedule 11A to ICTA (directions as to meaning of "the relevant day") by virtue of which a day on or after 6th April 2003 was directed to be the relevant day in relation to a change of residence--

(a) is not affected by any repeals made by this Act, but

(b) continues in force as respects any benefit provided or expenses incurred on or after that date as if it were a direction given under section 274(2) (directions as to the limitation day), directing that day to be the limitation day.

Retraining courses

37 (1) The repeal of sections 588(5)(a) and 589(3) and (4) of ICTA does not affect--

(a) the operation of section 588(5) of ICTA by virtue of paragraph (a) of that provision where liability for a tax year before 2003-04 is determined,

(b) the operation of section 588(5) of ICTA by virtue of paragraph (b) of that provision where liability is determined on the assumption that the person undertaking the course fell within section 588(1) of ICTA in such a tax year, or

(2) In any case where there has been such a determination as is mentioned in sub-paragraph (1)(a) or (b), section 588(6) and (7) apply as if section 588(6) referred to a failure to comply with any provision of section 589(3) or (4) of ICTA instead of a failure to meet such a condition as is mentioned in section 312(1)(b)(i) or (ii) of this Act.

Suggestion awards

38 (1) This paragraph applies for the purpose of determining the extent, if any, to which section 321(2) (exemption of suggestion awards) applies in respect of a financial benefit award for a suggestion ("the later award") in a case where such an award ("the earlier award") has been made for the same suggestion on a previous occasion or occasions before the tax year 2003-04.

(2) For the purposes of the application of section 322(3) in relation to the later award, "the residue of the suggestion maximum" means the suggestion maximum, as defined in section 322(4), less the aggregate of--

(a) the total of the amounts exempted from income tax under section 321 in respect of financial benefit awards for the same suggestion made on previous occasions, and

(b) the total of the earlier awards.

Part 5 Employment income: deductions

Earnings charged on remittance

39 In relation to expenses incurred before the tax year 2003-04, section 353 (deductions from earnings charged on remittance) applies as if the condition in subsection (3) of that section were that the expenses would have been deductible under section 193, 194, 195 or 198(1) of ICTA from emoluments of the office or employment if those emoluments had been chargeable under Case I of Schedule E for the tax year in which the expenses were incurred.

Non-domiciled employee's travel costs and expenses: "qualifying arrival date"

40 In relation to any time before 6th April 2003, section 375 (meaning of "qualifying arrival date") has effect as if the references in subsections (1)(a) and (4) to the person receiving earnings for duties performed in the United Kingdom included a reference to the person receiving emoluments for such duties.

Part 6 Employment income: income which is not earnings or share-related

Benefits from non-approved pension schemes

41 (1) Chapter 2 of Part 6 (benefits from non-approved pension schemes) applies with the following modifications in relation to a benefit provided under a non-approved retirement benefits scheme which--

(a) was entered into before 1 December 1993, and

(b) has not been varied on or after that day with a view to the provision of the benefit.

(2) Section 393(2) does not apply.

(3) Section 394(5) does not apply.

(4) For sections 395, 396 and 397 substitute--

" 394A Pre-December 1993 schemes: chargeability of certain lump sums

(1) Section 394 does not apply to a lump sum to the extent that the lump sum is attributable to the payment of a sum--

(a) which is deemed to be the income of a person by virtue of section 595(1) of ICTA and in respect of which that person has been assessed to tax, or

(b) which counted as the employment income of an employee by virtue of section 386(1) of this Act.

(2) For the purposes of subsection (1) it must be assumed that, unless the contrary is shown, the provision of a lump sum is not attributable to the payment of such a sum as is mentioned in that subsection.

394B Pre-December 1993 schemes: relationship between this Chapter and Part 2

(1) This section applies if, apart from this section, the provision of a benefit to which this Chapter applies would give rise to two amounts ("A" and "B")--

(a) A being an amount of general earnings from an employment (see section 7), and

(b) B being an amount which is to count as employment income of an individual by virtue of section 394(1).

(2) In such a case--

(a) A constitutes general earnings from the employment, and

(b) the amount, if any, by which B exceeds A is to count as employment income of the individual by virtue of section 394(1). "

Payments and benefits on termination of employment etc.

42 Section 403 (charge on payment or other benefit) does not apply in relation to payments or other benefits received on or after 6th April 2003 that were brought into charge to tax before 6th April 1998.

43 (1) This paragraph applies for the purpose of determining how the £30,000 threshold referred to in sections 403 and 404 operates where--

(a) payments or other benefits to which Chapter 3 of Part 6 apply are received, and

(b) payments or benefits to which section 148 of ICTA applied were received in respect of the same person--

(i) in respect of the same employment, or

(ii) in respect of different employments with the same employer or associated employers.

(2) For the purposes of section 403(4) and (5), section 415 (valuation of benefits) does not apply to the payments and benefits referred to in sub-paragraph (1)(b), and their aggregate amount is to be taken to be their aggregate amount immediately before 6th April 2003.

(3) The references in sections 403(4) and (5) and 404(3)(b) to payments or benefits to which Chapter 3 of Part 6 applies include references to the payments and benefits referred to in sub-paragraph (1)(b).

(4) Section 404(2) (when employers are associated) applies for the purposes of this paragraph.

Part 7 Employment income: share-related income

Conditional interests in shares

44 Chapter 2 of Part 7 does not apply in relation to interests acquired before 17th March 1998.

45 (1) This paragraph relates to the operation of section 425 (cases where Chapter 2 of Part 7 does not apply).

(2) Section 425(1) applies in relation to any acquisition made before 6th April 2003 with the substitution of "if the person was not chargeable under Case I of Schedule E in respect of the office or employment in question" for the words from "if the earnings" onwards.

46 (1) This paragraph relates to the operation of section 428 (amount of charge where interest in shares ceases to be only conditional or on disposal) in relation to an acquisition made before 6th April 2003.

(2) For the purposes of section 428(1) each of the following is a "deductible amount"--

(a) any amounts on which the employee has become chargeable to tax under Schedule E in respect of the acquisition of the employee's interest; and

(b) any amount on which the employee has become chargeable to tax in respect of the shares under section 78 or 79 of FA 1988 (unapproved employee share schemes) by reference to an event that occurred before 6th April 2003.

47 (1) This paragraph applies where--

(a) in the tax year 2002-03 a person provided an individual with an interest in shares which was only conditional, and

(b) the circumstances were such that subsequent events might have given rise to a charge under section 140A of ICTA (charge on conditional interest in shares ceasing to be conditional or on disposal) on that individual.

(2) Section 432 (duty to notify provision of conditional interests in shares) applies in relation to the provision subject to the following provisions.

(3) The particulars required by section 432(2) must be provided to the Inland Revenue before 6th May 2003.

(4) However, no particulars of the provision need be provided by a person under section 432 if that person has already given particulars of it under section 140G(1) of ICTA (which made provision corresponding to section 432 for tax years before 2003-04).

48 (1) This paragraph applies where--

(a) a person had an interest in shares which was only conditional,

(b) in the tax year 2002-03 either--

(i) the shares ceased to be shares in which that person's interest was only conditional,

(ii) the shares were disposed of, or

(iii) that person died, and

(c) that event gave rise to a charge under section 140A of ICTA (charge on conditional interest in shares ceasing to be conditional or on disposal).

(2) Section 433 (duty to notify events resulting in charges under section 427) applies in relation to the event subject to the following provisions.

(3) The particulars required by section 433(2) must be provided to the Inland Revenue before 6th May 2003.

(4) However, no particulars of the provision need be provided by a person under section 433 if that person has already given particulars of it under section 140G(2) of ICTA (which made provision corresponding to section 433 for tax years before 2003-04).

Convertible shares

49 Chapter 3 of Part 7 does not apply in relation to shares acquired before 17th March 1998.

50 (1) This paragraph relates to the operation of section 437 (cases where Chapter 3 of Part 7 does not apply).

(2) Section 437(1) applies in relation to any acquisition made before 6th April 2003 with the substitution of "if the person was not chargeable under Case I of Schedule E in respect of the office or employment in question" for the words from "if the earnings" onwards.

51 (1) This paragraph relates to the operation of section 439 (amount of charge on conversion of shares) in relation to an acquisition made before 6th April 2003.

(2) For the purposes of section 439(1) each of the following is a "deductible amount"--

(a) any amounts on which the employee has become chargeable to tax under Schedule E in respect of the acquisition of the convertible shares or the interest in them;

(b) if the convertible shares, or an interest in them, were acquired through a series of conversions each of which was a pre-commencement taxable conversion, the amount of the gain under section 140D(5) of ICTA from each conversion, so far as not falling within paragraph (a); and

(c) any amount on which the employee has become chargeable to tax in respect of the shares under section 78 or 79 of FA 1988 (unapproved employee share schemes) by reference to an event that occurred before 6th April 2003.

(3) In sub-paragraph (2)(b) a "pre-commencement taxable conversion" means a conversion which--

(a) gave rise to a gain on which the employee was chargeable to tax by virtue of section 140D of ICTA, or

(b) would have done so but for the fact that the market value of the shares at the time of the conversion did not exceed the sum of the deductible amounts.

52 (1) This paragraph relates to the operation of section 439 (amount of charge on conversion of shares) in relation to an acquisition made on or after 6th April 2003 through a series of conversions, one or more of which occurred before that date and each of which was a pre-commencement taxable conversion or a taxable conversion.

(2) In this paragraph--

"pre-commencement taxable conversion" has the meaning given by paragraph 51(3), and
"taxable conversion" has the meaning given by section 439(6).

(3) For the purposes of section 439(1) each of the following is a "deductible amount"--

(a) the amount of the gain under section 140D(5) of ICTA from each pre-commencement taxable conversion; and

(b) the taxable amount for each taxable conversion, so far as not falling within paragraph (c), (d) or (e) of section 439(2).

53 (1) This paragraph applies where--

(a) a person provided an individual with convertible shares, or an interest in such shares, in a company,

(b) those shares were converted in the tax year 2002-03 into shares of a different class, and

(c) the circumstances were such that the conversion gave rise, or might have given rise, to a charge under section 140D of ICTA (convertible shares) on the individual.

(2) Section 445 (duty to notify conversions of shares) applies in relation to the conversion subject to the following provisions.

(3) The particulars required by section 445(2) must be provided to the Inland Revenue before 6th May 2003.

(4) However, no particulars of the provision need be provided by a person under section 445 if that person has already given particulars of it under section 140G(3) of ICTA (which made provision corresponding to section 445 for tax years before 2003-04).

Post-acquisition benefits from shares

54 Chapter 4 of Part 7 does not apply in relation to shares or an interest in shares acquired before 26th October 1987, except to the extent provided by paragraph 55 (read with paragraph 56).

55 (1) Chapter 4 of Part 7 applies in relation to shares or an interest in shares acquired before 26th October 1987 if the company was not a dependent subsidiary on that date.

(2) But it so applies--

(a) with the omission of sections 453 to 460, and

(b) subject to paragraph 56.

56 The removal or variation of a restriction applying to shares or an interest in shares acquired before 26th October 1987 is not a chargeable event for the purposes of section 449 if paragraph 7 of Schedule 8 to FA 1973 (requirement for disposal to nominees at price not exceeding market value on termination of employment) would have applied to it.

57 Despite the repeals made by this Act--

(a) sections 138 and 139 of ICTA (share acquisitions by directors and employees), and

(b) section 140 of ICTA (further interpretation) as it applies for the purposes of those sections,

continue to apply in relation to shares or interests in shares acquired before 26th October 1987.

58 (1) This paragraph relates to the operation of section 448 (cases where Chapter 4 of Part 7 does not apply).

(2) Section 448(1) applies in relation to any acquisition made before 6th April 2003 with the substitution of "if the person was not chargeable under Case I of Schedule E in respect of the office or employment in question" for the words "if the earnings" onwards.

(3) Section 448(3) and (4) do not apply in relation to any acquisition made before 16th January 1991.

59 (1) This paragraph relates to the operation of section 455 (amount of charge on increase in value of shares) in relation to an acquisition made before 6th April 2003.

(2) If before that date an event occurred by virtue of which the employee became chargeable to tax under--

(a) section 140A(4) of ICTA (employee's interest in shares ceasing to be only conditional), or

(b) section 140D(3) of ICTA (charge on conversion of convertible shares),

on any amount in respect of the shares, that amount is a "deductible amount" for the purposes of section 455(1).

60 (1) This paragraph applies where any acquisition of shares or an interest in shares within section 465(1) (general duty to notify acquisitions of shares or interests in shares) was made in the tax year 2002-03.

(2) Section 465 applies in relation to the acquisition subject to the following provisions.

(3) The particulars of the acquisition required by section 465(3) must be provided to the Inland Revenue before 7th July 2003.

(4) However, no particulars of the acquisition need be provided by a company under section 465 if the company has already given particulars of it under--

(a) section 85(1) of FA 1988 (which made provision corresponding to section 465 for tax years before 2003-04),

(b) section 136(6) of ICTA (which made provision corresponding to section 486 for such tax years), or

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