Section 554Z6 | Overlap with certain earnings ^F1

(1)This section applies if the relevant step gives rise to relevant earnings of A from A's employment with B—

(a)which are, in accordance with section 16 and (if applicable) section 17, “for” a tax year in which A is UK resident (and, in the case of a tax year that is a split year as respects A, are not “excluded” by virtue of section 15(1A)(a) and (b)(i)), or^F2

(b)which are, in accordance with section 29 and (if applicable) section 30, “for” a tax year in which A is non-UK resident but which are in respect of duties performed in the United Kingdom for the purposes of section 27(1)(a).

(2)The value of the relevant step (after any reductions under section 554Z4 or 554Z5) is reduced (but not below nil) by the amount of the relevant earnings.

(3)For the purposes of this section the following are “relevant” earnings—

(a)earnings within Chapter 1 of Part 3,

(b)amounts treated as earnings under Chapter 12 of Part 3, and

(c)a deemed employment payment under section 50 or any part of such a payment.

(4)But anything which is exempt income, or which falls within Chapter 3 of Part 4 of ITTOIA 2005, is not “relevant”.