Section 1291 | Making of “employee benefit contributions”

(1)For the purposes of section 1290 an “employee benefit contribution” is made if, as a result of any act or omission—

(a)property is held, or may be used, under an employee benefit scheme, or

(b)there is an increase in the total value of property that is so held or may be so used (or a reduction in any liabilities under an employee benefit scheme).

(2)For this purpose “employee benefit scheme” means a trust, scheme or other arrangement for the benefit of persons who are, or include, present or former employees of the employer or persons linked with present or former employees of the employer.

(3)Section 554Z1 of ITEPA 2003 applies for the purposes of subsection (2) but as if references to A were to a present or former employee of the employer.

(4)So far as it is not covered by subsection (2), “employee benefit scheme” also means—

(a)an arrangement (the “relevant arrangement”) which is—

(i)an arrangement within subsection (1)(b) of section 554A of ITEPA 2003 to which subsection (1)(c) of that section applies, or

(ii)an arrangement within subsection (1)(b) of section 554AA of ITEPA 2003 to which subsection (1)(c) of that section applies, or

(b)any other arrangement connected (directly or indirectly) with the relevant arrangement.