Explanatory note

Section 58 of the Finance Act 2000 inserts sections 200E to 200J in the Income and Corporation Taxes Act 1988. Those sections exempt employees from income tax on contributions which an employer makes to the cost of an employee’s learning under individual learning accounts (established under the Learning and Skills Act 2000 (c. 21) and the equivalent legislation in Scotland, the Education and Training (Scotland) Act 2000). The inserted section 200G (“ section 200G”) makes the exemption conditional on the contribution having been made under “fair opportunity arrangements”, defined by section 200G(2)(b) as a situation where contributions are generally available, on similar terms, to the persons who at the relevant time held an office or employment under the employer.

Section 200G(3) gives the Treasury power to make Regulations specifying separate persons or entities, under whom Crown servants are to be treated as holding office or employment, for the purposes of section 200G. These Regulations make such provision for the Crown servants mentioned in regulation 2(2) and (3).