Income and Corporation Taxes Act 1988

600 Charge to tax: unauthorised payments to or for employees. U.K.

M1 (1) This section applies to any payment to or for the benefit of an employee [F1 or an ex-spouse], otherwise than in course of payment of a pension, being a payment made out of funds which areor have beenF2 held for the purposes of a scheme whichis or has at any time beenF2 approved for the purposes of—

(a) this Chapter;

(b) Chapter II of Part II of the Finance Act 1970; or

(c) section 208 or Chapter II of Part IX of the 1970 Act.

(2) If the payment [F3 is not expressly authorised by the rules of the scheme or by virtue of paragraph 33 of Schedule 6 to the Finance Act 1989][F4 the employee or, as the case may be, the ex-spouse shall (whether or not he is the recipient of the payment)] be chargeable to tax on the amount of the payment under Schedule E for the year of assessment in which the payment is made.

(3) Any payment chargeable to tax under this section shall not be chargeable to tax under section 598 or 599 or under the Regulations mentioned in paragraph 8 of Schedule 3 to the Finance Act 1971.

(4) References in this section to any payment include references to any transfer of assets or other transfer of money’s worth.

Textual Amendments

F1 Words in s. 600(1) inserted (with application in accordance with Sch. 10 para. 18(7) of the amending Act) by Finance Act 1999 (c. 16), Sch. 10 para. 8(1); S.I. 2000/1093, art. 2

F2 Words repealed by 1989 ss.75, 187and Schs.6 paras.13(2)and 18(9)and 17 Part IVin relation to payments made on or after 27July 1989.

F3 1989 s.75and Sch.6 paras.13(3)and 18(9)in relation to payments made on or after 27July 1989.Previously

“—(a) is not expressly authorised by the rules of the scheme, or (b) is made at a time when the scheme is not approved for the purposes of any of the enactments mentioned in subsection (1) above, and would not have been expressly authorised by the rules of the scheme when it was last so approved,”.

F4 Words in s. 600(2) substituted (with application in accordance with Sch. 10 para. 18(7) of the amending Act) by Finance Act 1999 (c. 16), Sch. 10 para. 8(2); S.I. 2000/1093, art. 2

Modifications etc. (not altering text)

C1 See s.189—lump sum benefit on retirement.

Marginal Citations

M1 Source-1971 Sch.3 9