PART XIVU.K. PENSION SCHEMES, SOCIAL SECURITY BENEFITS, LIFE ANNUITIES ETC.

CHAPTER IIIU.K. RETIREMENT ANNUITIES

624 Sponsored superannuation schemes and controlling directors.U.K.

(1)M1In section 623 “a sponsored superannuation scheme” means a scheme or arrangement—

(a)relating to service in particular offices or employments, and

(b)having for its object or one of its objects to make provision in respect of persons serving in those offices or employments against future retirement or partial retirement, against future termination of service through death or disability, or against similar matters,

being a scheme or arrangement under which any part of the cost of the provision so made is or has been borne otherwise than by those persons by reason of their service (whether it is the cost or part of the cost of the benefits provided, or of paying premiums or other sums in order to provide those benefits, or of administering or instituting the scheme or arrangement).

(2)For the purposes of subsection (1) above a person shall be treated as bearing by reason of his service the cost of any payment made or agreed to be made in respect of his service, if that payment or the agreement to make it is treated under the Income Tax Acts as increasing his income, or would be so treated if he were chargeable to tax under Case I of Schedule E in respect of his emoluments from that service.

(3)M2In section 623 “controlling director” means a director of a company, the directors of which have a controlling interest in the company, who is the beneficial owner of, or able either directly or through the medium of other companies or by any other indirect means to control, more than 5 per cent. of the ordinary share capital of the company; and for the purposes of this definition—

  • company” means one within the M3Companies Act 1985 or the M4Companies (Northern Ireland) Order 1986; and

  • director” means—

    (a)

    in relation to a body corporate the affairs of which are managed by a board of directors or similar body, a member of that board or similar body;

    (b)

    in relation to a body corporate the affairs of which are managed by a single director or similar person, that director or person;

    (c)

    in relation to a body corporate the affairs of which are managed by the members themselves, a member of the body corporate;

    and includes any person who is to be or has been a director.

Marginal Citations

M1Source-1970 s.226(11)

M2Source-1970 s.226(9), 224(1)