This Part amends the Income Tax Act 2007.

(1) After section CW 55BA, insert:

(2) Subsection (1) applies for the 2012–13 and later tax years.

(1) In section EC 8, heading, replace “on” with “arising from”.

(2) After section EC 8(2), insert:

(1) Repeal—

• (a) the heading before section LC 3:

• (b) section LC 3:

• (c) the heading before section LC 4:

• (d) sections LC 4 and LC 5:

• (e) the heading before section LC 6:

• (f) sections LC 6 to LC 8:

• (g) the heading before section LC 9:

• (h) section LC 9:

• (i) the heading before section LC 10:

• (j) sections LC 10 to LC 12.

(2) Subsection (1) applies for the 2012–13 and later tax years, except as given by subsection (3).

(3) For the purposes of schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, subsection (1)(d) applies for PAYE income payments made on or after 1 April 2013.

(1) This section amends section YA 1.

(2) In the definition of civil union partner, replace “sections LC 4 and LC 13 (which relate to tax credits for natural persons)” with “section LC 13 (Tax credits for independent earners)”.

(3) Repeal the definition of compensation.

(4) Repeal the definition of engaged in full-time work.

(5) Repeal the definition of home.

(6) Repeal the definition of household member.

(7) Repeal the definition of housekeeper.

(8) Repeal the definition of housekeeping payments.

(9) Repeal the definition of institution.

(10) In the definition of non-refundable tax credit, paragraph (a), delete “, excluding section LC 6 (Tax credits for housekeeping)”.

(11) Repeal the definition of paid work.

(12) Repeal the definition of personal injury by accident.

(13) In the definition of separated person, delete “section LC 7 (Meaning of housekeeper),”.

(14) In the definition of spouse, delete “section LC 4 (Tax credits for transitional circumstances) and”.

(15) Subsections (2) to (14) apply for the 2012–13 and later tax years except as given by subsection (16).

(16) For the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, subsections (2), (3), (4), (11), (12), and (14) apply for PAYE income payments made on or after 1 April 2013.

(1) In schedule 2, part A, clause 1—

• (a) in the heading, replace “‘M’, ‘ME’, and ‘ML’” with “‘M’ and ‘ME’”:

• (b) in paragraph (b), replace “‘M’, ‘ME’, or ‘ML’” with “‘M’ or ‘ME’”.

(2) In schedule 2, part A, clause 2—

• (a) in the heading, replace “‘M’, ‘ME’, and ‘ML’” with “‘M’ and ‘ME’”:

• (b) in the words before the formula, replace “‘M’, ‘ME’, or ‘ML’” with “‘M’ or ‘ME’”.

This Part amends the Tax Administration Act 1994.

(1) In section 24B(3)(a), delete “LC 4 or”.

(2) Repeal section 24B(3)(b).

(3) Subsections (1) and (2) apply for the 2013–14 and later tax years.

(1) Repeal section 24H(7).

(2) Subsection (1) applies for the 2012–13 and later tax years.

(1) In the heading to section 41A, delete “housekeeping payments and”.

(2) In section 41A(1), delete “section LC 6 or”.

(3) In section 41A(3),—

• (a) delete “housekeeping payments under section LC 6 of that Act and”:

• (b) replace “payment or gift, or both,” with “gift”.

(4) In section 41A(4),—

• (a) delete “, in equal portions,”:

• (b) delete “housekeeping payments and”:

• (c) replace “payment or gift, or both,” with “gift”.

(5) Repeal section 41A(5)(a).

(6) In section 41A(10), delete “section LC 6 or”.

(7) Subsections (1) to (6) apply for the 2012–13 and later tax years.