Part 2Trading income
Chapter 4Trade profits: rules restricting deductions
Employee benefit contributions
39Making of “employee benefit contributions”
F11
For the purposes of section 38, an “employee benefit contribution” is made if, as a result of any act or omission—
a
property is held, or may be used, under an employee benefit scheme, or
b
there is an increase in the total value of property that is so held or may be so used (or a reduction in any liabilities under an employee benefit scheme).
2
For this purpose “employee benefit scheme” means a trust, scheme or other arrangement for the benefit of persons who are, or include, present or former employees of the employer F2 or persons linked with present or former employees of the employer .
F33
Section 554Z1 of ITEPA 2003 applies for the purposes of subsection (2) but as if references to A were to a present or former employee of the employer.
4
So far as it is not covered by subsection (2), “employee benefit scheme” also means—
F4a
an arrangement (the “relevant arrangement”) which is—
i
an arrangement within subsection (1)(b) of section 554A of ITEPA 2003 to which subsection (1)(c) of that section applies, or
ii
an arrangement within subsection (1)(b) of section 554AA of ITEPA 2003 to which subsection (1)(c) of that section applies, or
b
any other arrangement connected (directly or indirectly) with the relevant arrangement.