Part 7A

Employment income provided through third parties
CHAPTER 1

Application etc

Exclusions

Exclusions: pre-6 April 2006 contributions to employer-financed retirement benefit schemes
554U
1
This section applies if the subject of a relevant step is a sum of money or asset which has (wholly or partly) arisen or derived (directly or indirectly) from a sum of money (“the taxed sum”)—
a
which was paid by B in accordance with an employer-financed retirement benefits scheme (within the meaning of Chapter 2 of Part 6) with a view to the provision of benefits under the scheme, and
b
in respect of which A is taxed.
2
For the purpose of determining whether A is taxed in respect of a sum of money, paragraph 53(3) of Schedule 36 to FA 2004 applies as it applies for the purpose of determining whether an employee is taxed for the purposes of paragraph 53(1)(b) of that Schedule.
3
Chapter 2 does not apply by reason of the relevant step.
4
Subsection (5) applies if the sum of money or asset which is the subject of the relevant step only partly arises or derives from the taxed sum.
5
The relevant step is to be treated for the purposes of this Part as being two separate relevant steps—
a
one in relation to the sum of money or asset so far as it arises or derives from the taxed sum, and
b
one in relation to the sum of money or asset so far as it does not arise or derive from the taxed sum,
with subsection (3) applying only in relation to the separate relevant step mentioned in paragraph (a).
6
In order to give effect to subsection (5), the sum of money or asset which is the subject of the relevant step is to be apportioned between the two separate relevant steps on a just and reasonable basis.
7
If B is a company and is a member of a group of companies at any time (“
the relevant time
”), in subsection (1)(a), in relation to any sum of money paid at the relevant time, the reference to B is to be read as including a reference to any other company which is a member of that group at the relevant time.
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)