Citation commencement and effect

1.-(1) These Regulations may be cited as the Coronavirus Life Assurance Scheme (Northern Irish Scheme) (Excluded Benefits for Tax Purposes) Regulations 2020 and shall come into force on 5th November 2020.

(2) Regulation 2 has effect for the tax year 2020–21 and subsequent tax years.

Benefits excluded from charge under Chapter 2 of Part 6 of ITEPA 2003

2.  A lump sum provided under the Health and Social Care Coronavirus Life Assurance (Northern Ireland) Scheme 2020(3) is prescribed for the purposes of section 393B(3)(d) of the Income Tax (Earnings and Pensions) Act 2003 (prescribed benefits to be excluded benefits for the purposes of Chapter 2 of Part 6 of that Act).

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations apply to a lump sum payment of £60,000 which is paid pursuant to the Health and Social Care Coronavirus Life Assurance (Northern Ireland) Scheme 2020. The Regulations provide that the lump sum shall be exempted from the charge to tax on employer-financed benefits under section 394 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1). The lump sum payment is an excluded benefit under section 393B(3)(d) of that Act and hence not a relevant benefit for the purposes of Chapter 2 of Part 6 of that Act.

Regulation 2 has retrospective effect so that the tax exemption it provides applies in relation to any payments made in the tax year 2020-21 or subsequent tax years.

A Tax Information and Impact Note has not been prepared for this instrument as it contains no substantive changes to tax policy.