SCHEDULES
SCHEDULE 24Restriction of deductions for employee benefit contributions
“Provision of qualifying benefits”
2
1
For the purposes of this Schedule qualifying benefits are provided where there is a payment of money or transfer of assets, otherwise than by way of loan, that—
a
gives rise both to an employment income tax charge and to an NIC charge, or would do if the conditions in sub-paragraph (3) were met, F1...
b
is made in connection with the termination of the recipient’s employment with the employer, F2or
c
is made under an employer-financed retirement benefits scheme.
2
In sub-paragraph (1)(a)—
“employment income tax charge” means a charge to tax under the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (whether on the recipient or on someone else);
“NIC charge” means a liability to pay national insurance contributions under section 6 (Class 1 contributions), 10 (Class 1A contributions) or 10A (Class 1B contributions) of the Contributions and Benefits Act.
3
The conditions mentioned in sub-paragraph (1)(a) are—
a
that the duties of the employment in respect of which the payment or transfer was made were performed in the United Kingdom, and
b
that the person in respect of whose employment the payment or transfer was made fulfilled at all relevant times the conditions as to residence or presence in Great Britain or Northern Ireland prescribed under section 1(6)(a) of the Contributions and Benefits Act.
4
In this paragraph “the Contributions and Benefits Act” means—
a
the Social Security Contributions and Benefits Act 1992 (c. 4), or
b
the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).
5
Where the provision of a qualifying benefit takes the form of the payment of money F3otherwise than under an employer-financed retirement benefits scheme, the benefit is treated for the purposes of this Schedule as provided at the time when the money is treated as received for the purposes of Chapter 4 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003, applying the rules in section 18 of that Act (receipt of money earnings).