Income and Corporation Taxes Act 1988

F1590C Earnings cap.U.K.

(1)In arriving at an employee’s final remuneration for the purposes of section 590(3)(a) or (d), any excess of what would be his final remuneration (apart from this section) over the permitted maximum for the year of assessment in which his participation in the scheme ceases shall be disregarded.

(2)In subsection (1) above “the permitted maximum”, in relation to a year of assessment, means the figure found for that year by virtue of subsections (3) and (4) below.

(3)For the years 1988-89 and 1989-90 the figure is £60,000.

(4)For any subsequent year of assessment the figure is also £60,000, subject to subsection (5) below.

(5)If the retail prices index for the month of December preceding a year of assessment falling within subsection (4) above is higher than it was for the previous December, the figure for that year shall be an amount arrived at by—

(a)increasing the figure for the previous year of assessment by the same percentage as the percentage increase in the retail prices index, and

(b)if the result is not a multiple of £600, rounding it up to the nearest amount which is such a multiple.

(6)The Treasury shall in the year of assessment 1989-90, and in each subsequent year of assessment, make an order specifying the figure which is by virtue of this section the figure for the following year of assessment.

Textual Amendments

Modifications etc. (not altering text)

C1S. 590C amended (1991-92) by S.I. 1991/734, art. 2

S. 590C amended (1992-93) by S.I. 1992/624, art. 2

S. 590C amended (1993-94) by 1993 c. 34, s.106 (in place of S.I. 1993/757, art. 2)