The Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) (Amendment) Regulations 2016

Amendment of the Employer-Financed Retirement Benefits (Excluded Benefits for Tax Purposes) Regulations 2007

4.  After paragraph 21 of the Schedule(1) insert—

“Trivial benefits

22.— (1) The provision of a benefit which would have been exempted by virtue of sections 323A and 323B of ITEPA 2003(2) (exemption from income tax for trivial benefits provided by employers) if it had been provided in the course of the employee’s employment.

(2) For the purposes of sub-paragraph (1)—

(a) section 323A(2) of ITEPA 2003 (close company restriction) applies where—

(i) the former employer is a close company(3) when the benefit is provided, and

(ii) the former employee is—

(aa) a person who was a director or other office-holder at any time when the former employer was a close company, or

(bb) a member of the family or household of such a person, and

(b) a benefit provided to a member of the family or household of the former employee is included in the calculation of the amount allocated under section 323B(4) of ITEPA 2003 (amount allocated in respect of a benefit).”.

(1)

Paragraphs 18 to 21 of the Schedule were inserted by S.I. 2011/2281.

(2)

Sections 323A to 323C were inserted by section 13 of the Finance Act 2016 (c. 24).

(3)

Section 989 of the Income Tax Act 2007 (c. 3) defines a “close company” for the purposes of the Income Tax Acts.