[F1554Z2Value of relevant step to count as employment incomeU.K.
(1)If this Chapter applies by reason of a relevant step, the value of the relevant step (see section 554Z3) counts as employment income of A in respect of A's employment with B—
(a)if the relevant step is taken before A's employment with B starts, for the tax year in which the employment starts, or
(b)otherwise, for the tax year in which the relevant step is taken.
(2)If the relevant step gives rise to—
(a)an amount which (apart from this subsection) would be treated as earnings of A under a provision of the benefits code, or
(b)any income of A which (apart from this subsection) would be dealt with under Chapter 3 of Part 4 of ITTOIA 2005,
subsection (1) applies instead of that provision of the benefits code or Chapter 3 of Part 4 of ITTOIA 2005 (as the case may be).
(3)In particular, in a case in which the relevant step is the making of an employment-related loan (within the meaning of Chapter 7 of Part 3), the effect of subsection (2)(a) is that the loan is not to be treated for any tax year as a taxable cheap loan for the purposes of that Chapter.]
Textual Amendments
F1Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1