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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Exclusions

  • Section 554E Exclusions: steps under certain schemes etc
  • Section 554F Exclusions: commercial transactions
  • Section 554G Exclusions: transactions under employee benefit packages
  • Section 554H Exclusions: earmarking of deferred remuneration
  • Section 554I Exclusions: introduction to sections 554J to 554M
  • Section 554J Exclusions: earmarking for employee share schemes (1)
  • Section 554K Exclusions: earmarking for employee share schemes (2)
  • Section 554L Exclusions: earmarking for employee share schemes (3)
  • Section 554M Exclusions: earmarking for employee share schemes (4)
  • Section 554N Exclusions: other cases involving employment-related securities etc
  • Section 554O Exclusions: employee car ownership schemes
  • Section 554OA Exclusions: transfer of employment-related loans
  • Section 554P Exclusions: employment income exemptions under Part 4
  • Section 554Q Exclusions: income arising from earmarked sum or asset
  • Section 554R Exclusions: acquisitions out of sums or assets
  • Section 554RA Exclusions: relevant repayments
  • Section 554S Exclusions: pension income chargeable under Part 9 etc
  • Section 554T Exclusions: employee pension contributions
  • Section 554U Exclusions: pre-6 April 2006 contributions to employer-financed retirement benefit schemes
  • Section 554V Exclusions: purchases of annuities out of pension scheme rights
  • Section 554W Exclusions: certain retirement benefits etc
  • Section 554X Exclusions: transfers between certain foreign pension schemes
  • Section 554XA Exclusions: payments in respect of a tax liability
  • Section 554Y Power to exclude other relevant steps
  1. Exclusions
  2. Exclusions: introduction to sections 554J to 554M

Section 554I | Exclusions: introduction to sections 554J to 554M F1

From legislation.gov.uk

(1)Sections 554J and 554K are about steps within section 554B taken in relation to awards of certain shares or securities or of sums of money determined by reference to the market value of certain shares or securities.F1

(2)Sections 554L and 554M are about steps within section 554B taken in relation to grants of rights to acquire certain shares or securities or to receive sums of money determined by reference to the market value of certain shares or securities.F1

(3)Sections 554J to 554M apply only if B is a company.F1

(4)In those sections—F1

“relevant benefits” has the same meaning as in Chapter 2 of Part 6, but ignoring section 393B(2)(a),

“relevant shares” means—

(a)shares (including stock) in B,

(b)instruments issued by B which are securities for the purposes of Chapters 1 to 5 of Part 7 within section 420(1)(b), or

(c)units in a collective investment scheme (as defined in section 420(2)) managed by B which are securities for the purposes of Chapters 1 to 5 of Part 7 within section 420(1)(e), and

“trading company” means a company the business of which consists wholly or mainly in the carrying on of a trade.

(5)If B is a member of a group of companies, in the definition of “relevant shares” in subsection (4) references to B are to be read as including references to any other company which is a member of that group.F1

(6)For the purposes of sections 554K and 554M an exit event occurs if—F1

(a)shares in the relevant company are admitted to trading on a stock exchange,F1

(b)all the shares in the relevant company, or a substantial proportion of them, are disposed of to persons none of whom is connected with any of the persons making any disposal,F1

(c)if the relevant company is a trading company (as defined in subsection (4)), the company's trade, or a substantial proportion of it, is transferred to a person who is not a relevant connected person,F1

(d)the relevant company's assets, or a substantial proportion of them, are disposed of to a person who is not a relevant connected person,F1

(e)the winding up of the relevant company starts, orF1

(f)a person (“P”) who controls the relevant company ceases to control it, so long as no person connected with P starts to control it.F1

(7)For the purposes of subsection (6)—F1

(a)“the relevant company” means—F1

(i)if the relevant shares mentioned in section 554K(1)(a)(i) or (ii) or 554M(1)(a)(i) or (ii) are shares (including stock), the company in which they are shares, orF1

(ii)if the relevant shares so mentioned are instruments within paragraph (b) of the definition of “relevant shares” in subsection (4), the company by which those instruments are issued,F1

(b)“relevant connected person” means a person who—F1

(i)is connected with the relevant company, orF1

(ii)is a shareholder in the relevant company or is connected with a shareholder in the relevant company,F1

(c)the relevant company's trade, or a substantial proportion of it, is transferred to another person if—F1

(i)the relevant company ceases to carry on the trade or the proportion of it, andF1

(ii)on that occurring, the other person starts to carry on the trade or the proportion of it, andF1

(d)section 12(7) of CTA 2009 applies for the purpose of determining when the winding up of the relevant company starts.F1

Notes

  1. F1

    Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1

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