Income Tax (Earnings and Pensions) Act 2003

Maximum amount of deductionsU.K.

46(1)The amount of partnership share money deducted from an employee’s salary must not exceed [F1£1,800] in any tax year. U.K.

(2)The amount of partnership share money deducted from an employee’s salary [F2for any tax year must not exceed 10% of the employee’s salary for the tax year.]

(3)The plan may authorise the company to specify lower limits than those specified in sub-paragraphs (1) and (2).

(4)If it does so, different limits may be specified in relation to different awards of shares.

[F3(4A)A limit lower than that specified in sub-paragraph (2) may be framed—

(a)as a proposition substituting a percentage lower than that so specified, or

(b)as a proposition that a particular description of earnings is not to be regarded as forming part of an employee’s salary for the purposes of that sub-paragraph.]

(5)Any amount deducted in excess of that allowed by sub-paragraph (1) or (2), or any lower limit in the plan, must be paid over to the employee as soon as practicable.

[F4(6)The Treasury may by order amend sub-paragraph (1) by substituting for any amount for the time being specified there an amount specified in the order.]

Textual Amendments

F1Word in Sch. 2 para. 46(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), s. 49(3)(4)

F2Words in Sch. 2 para. 46(2) substituted (with effect in accordance with Sch. 21 para. 7(5) of the amending Act) by Finance Act 2003 (c. 14), Sch. 21 para. 7(3)

F3Sch. 2 para. 46(4A) inserted (10.7.2003) by virtue of Finance Act 2003 (c. 14), Sch. 21 para. 7(4)

F4Sch. 2 para. 46(6) inserted (17.7.2014) by Finance Act 2014 (c. 26), s. 50(3)