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HMRC internal manual

Employment Income Manual

Part 7A ITEPA 2003 - Finance Act 2017 amendments: introduction

Part 7A ITEPA 2003 – Employment Income Manual draft guidance

The legislation at Part 7A Income Taxes (Earnings and Pensions) Act (ITEPA) 2003 covering employment income provided through third parties charges Income Tax on payments to employees where income is routed through someone other than the employer. FA (Finance Act) 2017 makes a number of amendments and additions to Part 7A to cover the following major areas.

New relevant steps

Section 554C is amended to create new relevant steps where a loan is transferred, released or written-off.

Double taxation provisions

It was never the intention that a charge under Part 7A would charge tax on income which was already subject to a charge to tax under provisions elsewhere in the Taxes Acts. The amendments and additions in Finance Act 2017 give a flexible approach to avoiding double taxation within certain parameters. It also contains provisions which cover the interaction between charges under Part 7A and any payments made to HM Revenue and Customs (HMRC) as a result of an Accelerated Payment Notice.

Finance Act 2017 also contains provisions relating to relevant steps taken in order to pay tax arising from charges under Part 7A as well as transfers of employment related loans to new employers.