Income and Corporation Taxes Act 1988

Preliminary U.K.

169 Interpretation. U.K.

M1 (1) In this Chapter—

• “employment” means an office or employment whose emoluments fall to be assessed under Schedule E, and related expressions have corresponding meanings;

• “employment unit” means an undertaking, or that part of an undertaking, to which a profit-related pay scheme relates;

• “pay” (except in the expression “profit-related pay”) means emoluments paid under deduction of tax pursuant to section 203, reduced by any amounts included in them by virtue of Chapter II of Part V;

• “profit period” means an accounting period by reference to which any profit-related pay is calcuated;

• “profit-related pay” means emoluments from an employment which are paid in accordance with a profit-related pay scheme;

• “profit-related pay scheme” means a scheme providing for the payment of emoluments calculated by reference to profits;

• “profits”, or “losses”, in relation to a profit period, means the amount shown in the account prepared for that period in accordance with the relevant profit-related pay scheme as the profit, or as the case may be the loss, on ordinary activities after taxation;

• “registered scheme” means a profit-related pay scheme registered under this Chapter;

• “scheme employer” means the person on whose application a profit-related pay scheme is or may be registered under this Chapter.

(2) References in this Chapter to the employees to whom a profit-related pay scheme relates are references to the employees who will receive any payments of profit-related pay under the scheme.

Marginal Citations

M1 Source—1987 (No.2) s.1

170 Taxation of profit-related pay. U.K.

M2 Any charge to income tax on profit-related pay paid in accordance with a registered scheme shall be made for the year of assessment in which it is paid (rather than the period for which it is paid) F1 .

Textual Amendments

F1 Repealed by 1989 ss.42(4), 187and Sch.17 Part IVfor 1989-90and subsequent years.

Marginal Citations

M2 Source—1987 (No.2) s.2