Section 196L | Employer asset-backed contributions: supplementary

(1)This section applies for the purposes of sections 196B to 196K.

(2)References to relief being given in respect of a contribution paid by an employer under a registered pension scheme are references to relief being given by way of—

(a)the contribution being deducted in computing the amount of the employer's profits for the purposes of Part 2 of ITTOIA 2005 or Part 3 of CTA 2009 (trading income),

(b)the contribution being treated as an expense of management of the employer for the purposes of Chapter 2 of Part 16 of CTA 2009 (expenses of management: companies with investment business), or

(c)the contribution being ordinary BLAGAB management expenses of the employer for an accounting period for the purposes of section 76 of FA 2012.

(3)Whether a person is connected with another person is determined in accordance with section 1122 of CTA 2010.

(4)Sections 774, 775 and 776(2) and (4) of CTA 2010 apply as they apply for the purposes of Chapter 2 of Part 16 of that Act.

(5)A reference to a disposal of an asset includes—

(a)anything constituting a disposal of an asset for the purposes of TCGA 1992, and

(b)so far as not covered by paragraph (a), the taking of any step by virtue of which a person receives an asset.

(6)Section 776(2) of CTA 2010 applies for the purposes of subsection (5)(b).

(7)“Non-working day” means—

(a)a Saturday or Sunday,

(b)a Christmas Eve, Christmas Day or Good Friday, or

(c)a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom,

and “working day” is to be read accordingly.