Corporation Tax Act 2009

1293 Timing and amount of certain qualifying benefits

(1) If the provision of a qualifying benefit—

(a) takes the form of a payment of money, and

(b) is not made under an employer-financed retirement benefits scheme,

the benefit is provided for the purposes of section 1290 when the money is treated as received for the purposes of Chapter 4 of Part 2 of ITEPA 2003 (applying the rules in section 18 of that Act (receipt of money earnings)).

(2) If the provision of a qualifying benefit takes the form of a transfer of an asset, the amount provided for the purposes of section 1290 is the total of—

(a) the amount (if any) spent on the asset by a scheme manager, and

(b) in a case where the asset was transferred to a scheme manager by the employer, the amount of the deduction that would be allowable as mentioned in subsection (1) of that section in respect of the transfer.

(3) But if the amount given by subsection (2) is more than the amount that—

(a) is charged to tax under ITEPA 2003 in respect of the transfer, or

(b) would be so charged if condition B in section 1292 were met,

the deduction allowable under section 1290(2) or (3) is limited to that lower amount.