EIM45010 | Employment income provided through third parties: glossary

From HM Revenue & Customs · Employment Income Manual

A, B and P	In this guidance (as in Part 7A ITEPA 2003):\nA is the employee (or former or prospective employee) mentioned in Section 554A(1)(a),\nB is A’s employer (or former or prospective employer), and\n(unless otherwise specified) P is the person taking the step under review.
‘Arrangement’ and ‘taxavoidance arrangement’	‘Arrangement’ and ‘tax avoidance arrangement’ are statutory terms: see EIM45855.
Earmarking	‘Earmarked’ is the key term in Section 554B(1)(a), one of the provisions which define ‘relevant step’.\nSee EIM45095 onwards.
EBT	Employee benefit trust. This is just one example of a trust and any other sort of trust could be involved in arrangements that are covered by Part 7A.
EFRBS	Employer-financed retirement benefits scheme. See Part 6 Chapter 2 ITEPA 2003 and EIM15010 onwards.
Exit event	For the meaning of ‘exit event’ in Sections 554K and 554M, see EIM45465.
‘Linked’ with A	‘Linked’ with A is a statutory term: see EIM45860.
Part 7A income	This guidance refers to employment income under Part 7A ITEPA 2003 as ‘Part 7A income’ for short.
The Part 7A rules	This guidance refers to the legislation on employment income provided through third parties, introduced by Schedule 2 FA 2011 and chiefly contained in Part 7A ITEPA 2003, as ‘the Part 7A rules’ for short.\nYou may find that some people refer to the Part 7A rules as the ‘disguised remuneration’ regime.
Relevant income	For the meaning of ‘relevant income’ in Sections 554J to 554M, see EIM45475.
Relevant person	A relevant step within Section 554C or 554D is taken in favour of a ‘relevant person’.\nSee EIM45090.
Relevant shares	For the meaning of ‘relevant shares’ in Sections 554J to 554M and 554Z7, see EIM45480.
Relevant step	A relevant step is an action which gives rise to Part7A income by reason of A’s employment with B.\nThe amount of the Part 7A income is the value of the relevant step (adjusted as appropriate).\nSee EIM45055 onwards.
Relevant third person	A relevant step only gives rise to Part 7A income if it is taken by a ‘relevant third person’.\nSee EIM45035.
Section 554A gateway	The conditions in Section 554A(1) must be met before an arrangement can give rise to Part 7A income.\nThis guidance refers to meeting these conditions as ‘coming through the Section 554A gateway’. See EIM45025.
Section 554*	Part 7A ITEPA 2003 comprises Sections 554A to 554Z21.\nIn this guidance, any reference to a section number (without specifying the Act it relates to) is to that section of ITEPA 2003.\nFor example, ‘Section 554P’ is a reference to Section 554P ITEPA2003.