Regulation 7 Determination of appropriate code by inspector

(1)

The appropriate code shall be determined by the inspector, who for that purpose may have regard to any of the matters specified in paragraph (2).

(2)

The matters specified in this paragraph are—

(a)

subject to paragraph (3), the reliefs from income tax to which the employee is entitled for the year in which the code is determined, so far as his title to those reliefs has been established at the time of the determination,

(b)

any income of the employee (other than the emoluments in relation to which the appropriate code is being determined)—

(i)

on which the tax will be reduced by any relief for the year for which the code is to have effect, or

(ii)

which is otherwise chargeable under Schedule E,

(c)

any tax overpaid for any previous year which has not been repaid,

(d)

any tax remaining unpaid for any previous year which is not otherwise recovered,

(e)

any amount to be recovered as if it were unpaid tax under the provisions ofsection 30(1)^f1 of the Management Act, being an amount of tax in respect of Schedule E repaid to the employee in excess of the amount properly due to him, which is not otherwise recovered, and

(f)

such other adjustments as may be necessary to secure that, so far as possible, the tax in respect of the employee’s emoluments for the year for which the code is to have effect shall be deducted from the emoluments paid during that year.

(3)

Where the code is determined before the beginning of the year for which it is to have effect, the inspector shall disregard any relief such as is referred to in paragraph (2)(a) if he is not satisfied that the employee will be entitled to it for that year.

Annotations

Footnotes

f1: Section 30(1) was substituted by section 149(1) of the Finance Act 1982 (c. 39).