Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 646: Former miners etc: coal and allowances in lieu of coal
2559.This section applies to free coal and payments in lieu of free coal given to retired miners and their widow or widower. It gives statutory effect to an extension to ESC A6 published in paragraph SE 66695 of the Inland Revenue’s Schedule E manual. See Change 69 in Annex 1.
2560.Subsection (2) limits the scope of the exemption to the provision of free coal, or the payment of cash in lieu, of an amount that represents a reasonable level of personal consumption. But subsection (3) assumes that this condition is met unless the Inland Revenue can show that it is not. The purpose of these two subsections is to reproduce the restriction that applies to all ESCs - a concession will not be given where an attempt is made to use it to avoid tax.
2561.Subsection (4) gives the definition of “former colliery worker”. The definition is the same as that in section 306.