(1)This section applies if—
(a)the trustees receive a sum of money which constitutes (or forms part of) a capital receipt which, by virtue of the SIP code, counts as employment income of a participant when it is received by the participant, and
(b)either condition A or B is met.
(2)Condition A is that the Inland Revenue—
(a)are of the opinion that it is impracticable for the employer company (within the meaning of section 513) to make a PAYE deduction, and
(b)accordingly direct that this section is to apply.
(3)Condition B is that there is no company that qualifies as the employer company (within the meaning of that section).
(4)If this section applies, the trustees must, when paying the capital receipt over to the participant, make a PAYE deduction in respect of the taxable equivalent as if the participant were a former employee of the trustees.
(5)The “taxable equivalent” means an amount equal to the amount which counts as employment income as mentioned in subsection (1)(a).
(6)If this section applies, section 689 (employee of non-UK employer) does not apply.