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(4) For the purpose of applying section 554Z9(2) or 554Z10(2), see
5Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted to the
United Kingdom” etc.

(5) If the relevant step involves a sum of money, for the purposes of that
Chapter the sum of money is treated as deriving from A’s
employment income (or the relevant part of it) to which section
10554Z9(2) or 554Z10(2) applies.

(6) In any other case, for the purposes of that Chapter the asset which is
the subject of the relevant step is treated as deriving from A’s
employment income (or the relevant part of it) to which section
554Z9(2) or 554Z10(2) applies.

(7) 15Subsection (8) applies if—

(a) after the relevant step is taken, there is another relevant step
(“the later relevant step”) by reason of which this Chapter
applies in respect of A’s employment with B, and

(b) within the meaning of section 554Z5, there is overlap
20between the sum of money or asset (“sum or asset R”) which
is the subject of the relevant step and the sum of money or
asset (“sum or asset S”) which is the subject of the later
relevant step.

(8) Except so far as, in any event—

(a) 25sum or asset S and sum or asset R are the same sum of money
or asset, or

(b) sum or asset S derives from sum or asset R,

for the purposes of Chapter A1 of Part 14 of ITA 2007 sum or asset S
is treated, to the extent of the overlap, as deriving from sum or asset
30R.

(9) Subsections (10) and (11) apply if—

(a) the relevant tax year within the meaning of section 554Z9 or
554Z10 is the tax year 2007-08 or any earlier tax year, and

(b) A—

(i) 35was UK resident in that year, but

(ii) was not domiciled in the United Kingdom, or was not
ordinarily UK resident, in that year.

(10) Section 554Z9 or 554Z10 (as the case may be) applies as if section
809B of ITA 2007 applied to A for the relevant tax year.

(11) 40In section 554Z9(1)(d) the reference to a foreign employer is to be
read as not including a person resident in the Republic of Ireland.

Supplementary
554Z12 Relevant step taken after A’s death etc

(1) Subsection (3), (4) or (5) (as the case may be) applies if the relevant
45step is a step within section 554C or 554D and—

Finance (No. 3) BillPage 99

(a) the relevant step is taken on or after A’s death, or

(b) if relevant, any of A’s employment income by virtue of
section 554Z2(1) is remitted to the United Kingdom on or
after A’s death.

5But none of those subsections applies if A’s employment with B
never started before A’s death.

(2) In subsections (3) to (5) “the relevant person” means the relevant
person (within the meaning of section 554C(1) or 554D(1) or (2)) in
relation to the relevant step.

(3) 10If the relevant person is A, A’s personal representatives are liable for,
as the case may be, the income tax on—

(a) A’s employment income by virtue of section 554Z2(1), or

(b) so much of that income as is remitted.

(4) If the relevant person is an individual other than A, the amount
15which, as the case may be—

(a) counts as employment income of A, or

(b) is remitted,

is to count as an amount of employment income of the relevant
person for the tax year in which the relevant step is taken or the
20income is remitted.

(5) If the relevant person is not an individual, the relevant taxable
person is chargeable to income tax on the amount which, as the case
may be—

(a) counts as employment income of A, or

(b) 25is remitted.

(6) In subsection (5) “the relevant taxable person” is to be read as
follows—

(a) if the person (or any of the persons) who took the relevant
step is UK resident, “the relevant taxable person” is the
30person (or each of the UK resident persons) who took the
relevant step,

(b) if paragraph (a) does not apply and B is still alive or in
existence when the relevant step is taken, “the relevant
taxable person” is B, or

(c) 35if neither paragraph (a) nor paragraph (b) applies, “the
relevant taxable person” is the non-UK resident person (or
each of the non-UK resident persons) who took the relevant
step.

(7) For the purposes of subsection (5)

(a) 40the rate of tax is the rate applying for the purposes of section
394(2) (see section 394(4)) at the time of the relevant step or
remittance of income, and

(b) the tax is charged for the tax year in which the relevant step
is taken or the income is remitted.

(8) 45If there is more than one relevant person in relation to the relevant
step, the amount which, as the case may be—

(a) counts as employment income of A, or

(b) is remitted,

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