CWG2 update - valuation of assets 5 December 2017
The CWG2: Further guide to PAYE and National Insurance contributions has been amended as the service for checking whether an amount on which employers propose to operate PAYE is reasonable is no longer provided.
Section 5.13.2 Valuation of assets has been amended as follows:
Payments in the form of readily convertible assets must be included in gross pay for both PAYE and NICs purposes. The amount on which PAYE should be operated and NICs assessed is the best estimate that can reasonably be made of the amount of income on which the employee is likely to be chargeable to tax in respect of the provision of the asset. For most assets, including shares or other securities provided directly to an employee, the value to be ascertained is ‘money’s worth’, with reference to: the cost of the asset to the employer the value of the asset when it was awarded where the employee has already sold the asset, the amount received for it – if known where the employee has contributed towards the cost of the asset – the amount of that contribution should be deducted Where, however, the event is one charged to tax under the securities legislation in Part 7 of ITEPA 2003 (for example, exercise of option or lifting of restriction on a security) the market value must be obtained by reference to the Capital Gains Tax (CGT) value (read Sections 272 and 273 Taxation of Chargeable Gains Act 1992 (TCGA) ).
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Finance Bill (No.2) 2017-18 draft legislation published 5 December 2017
The government has published the Finance (No.2) Bill which introduces the draft legislation for many of the measures announced in the Autumn Budget on 22 November.
Draft clauses include:
Income tax charge for tax year 2018-19 Main rates of income tax for tax year 2018-19 Default and savings rates of income tax for tax year 2018-19 Starting rate limit for savings for tax year 2018-19 Transfer of tax allowance after death of spouse or civil partner Deductions from seafarers’ earnings Benefits in kind: diesel cars Termination payments: foreign service Employment income provided through third parties Pension schemes CO2 emissions figures etc.
The Finance Bill (No.2) 2017-18 was published on 1 December 2017, along with the necessary supporting documents .
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The Chartered Institute of Payroll Professionals
Policy News Journal
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