42Provision or payment out of employee benefit contributionsU.K.
(1)For the purposes of section 38(2)(a)—
(a)any qualifying benefits provided, or
(b)any qualifying expenses paid,
by [F1a scheme manager] after the receipt by [F2the scheme manager] of employee benefit contributions are treated as being provided or paid out of the contributions.
(2)This operates up to the total amount of the contributions reduced by the amount of any benefits or expenses previously provided or paid as mentioned in section 38(2)(a).
(3)For the purposes of section 38(3)(a) any qualifying benefits provided by [F3a scheme manager] after the receipt by [F4the scheme manager] of employee benefit contributions are treated as being provided out of the contributions.
(4)This operates up to the total amount of the contributions reduced by the amount of any benefits or expenses previously provided or paid as mentioned in section 38(2)(a) or (3)(a).
(5)For the purposes of this section no account is taken of any other amount received or paid by the [F5scheme manager] .
Textual Amendments
F1Words in s. 42(1) substituted (19.7.2007 with effect as stated in s. 34(13) of the amending Act) by Finance Act 2007 (c. 11), s. 34(11)(a)
F2Words in s. 42(1) substituted (19.7.2007 with effect as stated in s. 34(13) of the amending Act) by Finance Act 2007 (c. 11), s. 34(11)(a)
F3Words in s. 42(3) substituted (19.7.2007 with effect as stated in s. 34(13) of the amending Act) by Finance Act 2007 (c. 11), s. 34(11)(b)
F4Words in s. 42(3) substituted (19.7.2007 with effect as stated in s. 34(13) of the amending Act) by Finance Act 2007 (c. 11), s. 34(11)(b)
F5Words in s. 42(5) substituted (19.7.2007 with effect as stated in s. 34(13) of the amending Act) by Finance Act 2007 (c. 11), s. 34(11)(c)