The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) (Amendment) Regulations 2013

Description 8: employment income provided through third parties

10.—(1) Part 4 is revoked.

(2) Subsequent to paragraph (1), for regulation 17A and its heading substitute—

“Description 8: Employment income provided through third parties

18.— (1) Arrangements are prescribed if—

(a) Conditions 1 and 2 are met and Condition 3 is not met; or

(b) Conditions 1, 2 and 3 are met and at least one of Conditions 4 and 5 is met.

(2) Condition 1 is met if the arrangements involve at least one of the following—

(a) a relevant third person taking a relevant step under section 554B;

(b) any person taking a relevant step under section 554C or 554D; or

(c) B taking a step under section 554Z18 or 554Z19.

(3) Condition 2 is met if the main benefit, or one of the main benefits, of the arrangements is that an amount that would otherwise count as employment income under section 554Z2(1) is reduced or eliminated.

(4) Condition 3 is met if, by reason of at least one of sections 554E to 554X or regulations made under section 554Y, Chapter 2 of Part 7A does not apply.

(5) Condition 4 is met if the arrangements involve one or more contrived or abnormal steps without which the main benefit in paragraph (3) would not be obtained.

(6) Condition 5 is met if the arrangements involve—

(a) a relevant step being treated as taking place; and

(b) Chapter 2 of Part 7A applying as a consequence of sub-paragraph (a).

(7) In this regulation—

(a) references to sections or Parts are to those in ITEPA(1) unless otherwise stated;

(b) “B” has the meaning given for Part 7A by sections 554A(1)(a) and 554Z17(7) read together;

(c) “contrived or abnormal” has the same meaning as in section 207 of the Finance Act 2013(2); and

(d) “relevant third person” has the same meaning as in section 554A(7).”.

(1)

2003 c. 1. Sections 554A(1)(a), 554A(7), 554B, 554C, 554D, 554E, 554X, 554Y, 554Z2(1), 554Z17(7), 554Z18, 554Z19 were inserted by paragraph 1 of Schedule 2 to the Finance Act 2011 (c.11).

(2)

2013 c. 29.