C5C11C6F2Part 7AEmployment income provided through third parties
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(6)
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 1(8)
Pt. 7A modified (22.7.2020) by 2017 c. 32, Sch. 11 para. 1A(2)(6) (as inserted by Finance Act 2020 (c. 14), s. 16(3))
C2C1C3C5C7C4C9C11C10C6C8CHAPTER 2Treatment of relevant step for income tax purposes
Pt. 7A Ch. 2 disapplied (with effect in accordance with reg. 1(2) of the amending S.I.) by The Employment Income Provided Through Third Parties (Excluded Relevant Steps) Regulations 2011 (S.I. 2011/2696), regs. 1(1), 3, 4
Pt. 7A Ch. 2 excluded (6.4.2017) by The Sporting Testimonial Payments (Excluded Relevant Step) Regulations 2016 (S.I. 2016/1250), regs. 1(1), 2(1) (with reg. 2(2))
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 29(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 27(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 25
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 31
Pt. 7A Ch. 2 excluded (22.7.2020) by 2017 c. 32, Sch. 11 para. 35ZA (as inserted by Finance Act 2020 (c. 14), Sch. 2 para. 38)
Employment income
554Z8Cases where consideration given for relevant step
1
Subsection (2) applies if—
a
the relevant step is a step within section 554C(1)(a) to (c),
b
the relevant step is for consideration given by A in the form of the transfer of an asset to P from A,
c
the transfer by A of the asset is made before, or at or about, the time the relevant step is taken and is not by way of a loan, and
d
there is no connection (direct or indirect) between the transfer by A of the asset and a tax avoidance arrangement.
2
The value of the relevant step (after any reductions under sections 554Z4 to 554Z6) is reduced (but not below nil) by—
a
the market value of the asset transferred by A at the time of its transfer, or
b
if the value of the relevant step was reduced under section 554Z4, X% of that market value.
3
For the purposes of subsection (1)(d) it is (in particular) to be assumed that the transfer by A of the asset is connected with a tax avoidance arrangement if—
a
before the transfer, the asset was transferred to A by another person by way of a loan, or
b
the asset is, or carries with it, any rights or interests under the relevant arrangement or any arrangement which is connected (directly or indirectly) with the relevant arrangement.
4
In subsection (3)(b) “the relevant arrangement” has the meaning given by section 554A(1)(b).
5
Subsection (6) applies if—
a
the relevant step is a step within section 554C(1)(b) or (c) or (e) or 554D and does not also involve a sum of money,
b
the relevant step is for consideration given by A in the form of the payment of a sum of money to P by A, F1...
c
the payment is made before, or at or about, the time the relevant step is takenF3, and
d
there is no connection (direct or indirect) between the payment and a tax avoidance arrangement.
6
The value of the relevant step (after any reductions under sections 554Z4 to 554Z6) is reduced (but not below nil) by—
a
the amount of the consideration given, or
b
if the value of the relevant step was reduced under section 554Z4, X% of the amount of that consideration.
7
In subsections (2)(b) and (6)(b) “X%” means the proportion of the value of the relevant step (as determined under section 554Z3) left after the reduction under section 554Z4.
8
In this section references to A include references to any person linked with A.
Pt. 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