Part 7A

Employment income provided through third parties
CHAPTER 1

Application etc

Relevant steps

Relevant steps: making asset available
554D
1
A person (“P”) takes a step within this section if, without transferring the asset to the relevant person, P—
a
at any time, makes an asset available for a relevant person to benefit from in a way which is substantially similar to the way in which the relevant person would have been able to benefit from the asset had the asset been transferred to the relevant person at that time, or
b
at or after the end of the relevant period, makes an asset available for a relevant person to benefit from.
2
If—
a
before the end of the relevant period, P makes available an asset for a relevant person to benefit from, and
b
at the end of the relevant period, P continues to make the asset available for the relevant person to benefit from,
P is treated as taking a step within this section by virtue of subsection (1)(b) at the end of the relevant period.
3
For the purposes of subsections (1) and (2)—
a
references to making an asset available are references to making it available in any way, however informal,
b
it does not matter if the relevant person has no legal right to benefit from the asset, and
c
it does not matter if the relevant person does not actually benefit from the asset.
4
In subsections (1) and (2) “
the relevant period
” means the period of two years starting with the day on which A's employment with B ceases.
5
In subsections (1) and (2) “relevant person”—
a
means A or a person chosen by A or within a class of person chosen by A, and
b
includes, if P is taking a step on A's behalf or otherwise at A's direction or request, any other person.
6
In subsection (5) references to A include references to any person linked with A.
7
The following factors (among others) may be taken into account in determining whether a step within this section is taken by virtue of subsection (1)(a)—
a
any limitations on the way in which the relevant person may benefit from the asset,
b
the period over which the asset is being made available and (if relevant) the extent to which that period covers the expected remaining useful life of the asset,
c
the extent to which the relevant person has, or is to have, a say over the disposal of the asset, and
d
the extent to which the relevant person may benefit from any proceeds arising from the disposal of the asset or otherwise have a say in the way the proceeds are used.
Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(6)
Pt. 7A modified (22.7.2020) by 2017 c. 32, Sch. 11 para. 1A(2)(6) (as inserted by Finance Act 2020 (c. 14), s. 16(3))
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 1(8)