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Income Tax (Earnings and Pensions) Act 2003

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Changes over time for: Section 549

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Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Section 549 is up to date with all changes known to be in force on or before 04 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

549Application of this ChapterU.K.
This section has no associated Explanatory Notes

(1)This Chapter applies for the purposes of any listed provision in circumstances where—

(a)an individual (“B”) is interested as a beneficiary of an employee benefit trust in shares or obligations of a particular company (“the company”), and

(b)the question arises under that provision whether the trustees of the trust are, as a result of B’s being so interested, to be regarded as associates of B’s for the relevant purposes.

The relevant purposes are those of the operation, in relation to the company, of the “no material interest” requirement contained in the Schedule to this Act in which the listed provision appears.

(2)In this Chapter “listed provision” means any of the following provisions (under which trustees of an employee benefit trust are not to be regarded as associates if specified limits relating to share ownership are not exceeded)—

(a)paragraph 23(2) of Schedule 2 (F1... SIPs),

(b)paragraph 15(2) of Schedule 3 (F2... SAYE option schemes),

(c)paragraph 13(2) of Schedule 4 (F3... CSOP schemes), or

(d)paragraph 32(2) of Schedule 5 (enterprise management incentives).

(3)The general effect of this Chapter is that if the provisions of—

(a)sections 552 and 553 (attribution of interest in company to beneficiary or associate), or

(b)section 554 (attribution of further interest),

apply in relation to B or an associate of B's, B or the associate is to be treated for the purposes of the listed provision as having been the beneficial owner of a particular percentage of the company’s ordinary share capital on a particular date.

(4)In this Chapter, in relation to an individual, “associate”—

(a)has the [F4meaning given by section 448 of CTA 2010 (close companies: meaning of “associate”)], but

(b)does not include the trustees of an employee benefit trust as a result only of the individual’s having (as mentioned in subsection (1)(a)) an interest in shares or obligations of the company which are subject to the trust.

(5)In this Chapter “employee” means the holder of a taxable employment under Part 2 (as defined in section 66(3)), and accordingly includes an office-holder whose office is within the scope of that definition as a result of section 5(1).

Textual Amendments

F1Word in s. 549(2)(a) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 48, 89 (with Sch. 8 paras. 90-96)

F2Word in s. 549(2)(b) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 135, 146 (with Sch. 8 paras. 147-157)

F3Word in s. 549(2)(c) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 199, 204 (with Sch. 8 paras. 205-215)

F4Words in s. 549(4)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 393 (with Sch. 2)

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