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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Employment income

  • Section 554Z2 Value of relevant step to count as employment income
  • Section 554Z2A Exception to section 554Z2(1): close companies
  • Section 554Z3 Value of relevant step
  • Section 554Z4 Residence issues
  • Section 554Z4A Temporary non-residents
  • Section 554Z5 Overlap with money or asset subject to earlier tax liability
  • Section 554Z6 Overlap with certain earnings
  • Section 554Z7 Exercise price of share options
  • Section 554Z8 Cases where consideration given for relevant step
  1. Employment income
  2. Temporary non-residents

Section 554Z4A | Temporary non-residents F1F2

From legislation.gov.uk

(1)This section applies if A is temporarily non-resident.F1F2

(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.F1F2

(3)A relevant step is within this subsection if—F1F2

(a)it is the payment of a lump sum to a relevant person (see section 554C(2)),F1F2

(b)the lump sum is a relevant benefit provided under a relevant scheme,F1F2

(c)the step is taken in the temporary period of non-residence, andF1F2

(d)ignoring this section—F1F2

(i)no charge to tax arises by virtue of section 554Z2 by reason of the step, butF1F2

(ii)such a charge would arise if the existence of any double taxation relief arrangements were disregarded.F1F2

(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.F1F2

(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).F1F2

(6)Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—F1F2

(a)when an individual is to be regarded as “temporarily non-resident”, andF1F2

(b)what “the temporary period of non-residence” and “the period of return” mean.F1F2

(7)In this section—F1F2

“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.

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

  2. F2

    S. 554Z4A inserted (with effect in accordance with Sch. 45 para. 153(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 126

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