HC Deb 15 March 1982 vol 20 cc144-5

Motion made, and Question,

That—

(1) Schedule 8 to the Income and Corporation Taxes Act 1970 (tax on payments for loss of employment etc.) shall have effect with the insertion at the beginning of paragraph 7 of the words "Subject to sub-paragraph (2) below" and with the addition, at the end of that paragraph, of the following:—

"(2) In the case of a payment which exceeds £50, 000, this paragraph applies as if it were a payment of £50, 000 exactly.

7A.—(1) Subject to subparagraph (2) below, in the case of a payment which exceeds £50, 000 and in respect of which tax is chargeable under section 187 of this Act, the following relief shall be allowed by way of deduction from the tax chargeable by virtue of that section, that is to say, there shall be ascertained—

  1. (a) the amount of tax which would be chargeable apart from this paragraph and paragraph 7 above in respect of the income of the holder or past holder of the office or employment for the chargeable period of which the payment is treated as income, and
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  2. (b) the amount of tax which would be so chargeable if the amount of the payment had been £50, 000 exactly.

and the amount to be deducted shall be one-quarter of the difference between the amount ascertained at (a) and the amount ascertained at (b)

(2) In the case of a payment which exceeds £75, 000, this paragraph applies as if it were a payment of £75, 000 exactly.

(3) Any relief allowed by virtue of this paragraph shall be in addition to that allowed by virtue of paragraph 7 above."

(2) Paragraph (1) of this Resolution shall have effect in relation to any payment which, by virtue of section 187(4) of the Income and Corporation Taxes Act 1970, is treated as income received on or after 6th April 1982.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.— [Sir Geoffrey Howe.]

put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.