126U.K.In Chapter 2 of Part 7A (employment income provided through third parties: treatment of relevant step for income tax purposes), after section 554Z4 insert—
(1)This section applies if A is temporarily non-resident.
(2)Any relevant step within subsection (3) is to be treated for the purposes of section 554Z2 as if it were taken in the period of return.
(3)A relevant step is within this subsection if—
(a)it is the payment of a lump sum to a relevant person (see section 554C(2)),
(b)the lump sum is a relevant benefit provided under a relevant scheme,
(c)the step is taken in the temporary period of non-residence, and
(d)ignoring this section—
(i)no charge to tax arises by virtue of section 554Z2 by reason of the step, but
(ii)such a charge would arise if the existence of any double taxation relief arrangements were disregarded.
(4)Subsection (3)(d)(i) includes a case where the charge could be prevented by making a DTR claim, even if no claim is in fact made.
(5)Nothing in any double taxation relief arrangements is to be read as preventing A from being chargeable to income tax in respect of any relevant step treated by virtue of this section as taken in the period of return (or as preventing a charge to that tax from arising as a result).
(6)Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—
(a)when an individual is to be regarded as “temporarily non-resident”, and
(b)what “the temporary period of non-residence” and “the period of return” mean.
(7)In this section—
“double taxation relief arrangements” means arrangements that have effect under section 2(1) of TIOPA 2010;
“DTR claim” means a claim for relief under section 6 of that Act;
“relevant benefit” has the same meaning as in Chapter 2 of Part 6;
“relevant scheme” means an employer-financed retirement benefits scheme (within the meaning of that Chapter) or a superannuation fund to which section 615(3) of ICTA applies.”