Part 7Employment income: share-related income and exemptions

Chapter 11Supplementary provisions about employee benefit trusts

Attribution of interests in company

553Meaning of “appropriate percentage” for purposes of section 552

1

For the purposes of section 552 “the appropriate percentage” is—

P×100Dmath

where P and D have the meaning given by the following provisions.

2

Unless subsection (3) applies, P is the aggregate of the relevant payment and any other payments received by B or associates of B’s from the trustees of the trust during the period of 12 months ending with the payment date.

3

If—

a

any distributions were made to the trustees of the trust by the company in respect of its ordinary share capital during the period of 3 years ending with the payment date, and

b

the aggregate of those distributions is less than the aggregate mentioned in subsection (2),

P is the aggregate of those distributions.

4

Unless subsection (5) applies, D is the amount determined as follows—

Step 1

Calculate the aggregate of—

a

any distributions made by the company in respect of its ordinary share capital during the period of 12 months ending with the payment date,

b

any distributions so made during the period of 12 months immediately preceding that mentioned in paragraph (a), and

c

any distributions so made during the period of 12 months immediately preceding that mentioned in paragraph (b).

Step 2

Divide the aggregate so calculated by the number of the periods mentioned in paragraphs (a) to (c) in which distributions were so made.

5

If no distributions were so made during any of those periods, D is 1.

6

In this section “the payment date” and “the relevant payment” have the meaning indicated in section 552(1).