PART V PROVISIONS RELATING TO THE SCHEDULE E CHARGE

CHAPTER III PROFIT-RELATED PAY

The relief

172 Exceptions from tax.

M11

Profit-related pay shall not be exempt from income tax by virtue of section 171 if—

a

it is paid to an employee in respect of his employment in an employment unit during a time when he also has another employment; and

b

he receives in respect of that other employment during that time profit-related pay which is exempt from income tax by virtue of that section.

2

Subject to subsection (3) below, profit-related pay in respect of which no secondary Class 1 contributions under Part I of the M2Social Security Act 1975 or Part I of the M3Social Security (Northern Ireland) Act 1975 are payable shall not be exempt from income tax by virtue of section 171.

3

Subsection (2) above shall not apply to profit-related pay in respect of which no Class 1 contributions are payable only because the employee’s earnings are below the lower earnings limit for such contributions.