Income Tax (Earnings and Pensions) Act 2003

[F1554Z12Relevant step taken after A's death etcU.K.
This section has no associated Explanatory Notes

(1)Subsection (3), (4) or (5) (as the case may be) applies if the relevant step is a step within section 554C [F2, by virtue of subsection (1)(a) or (b) to (e) of that section,] or 554D and—

(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.

But 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)If 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 which, 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 income 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)is 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 person (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)if 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)the 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)If 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,

is to be apportioned between the relevant persons on a just and reasonable basis with subsections (3) to (5) applying accordingly.

[F3(9)Section 554Z4A and section 554Z11A apply for the purposes of subsection (4) as for the purposes of section 554Z2 and section 554Z9(2) or 554Z10(2) respectively (reading references in sections 554Z4A and 554Z11A to “A” as references to “the relevant person”).

(10)But those sections do not apply for the purposes of subsection (4) if the relevant person's temporary period of non-residence began before A died.]]

Textual Amendments

F1Pt. 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

F2Words in s. 554Z12(1) inserted (with effect in accordance with Sch. 6 para. 13 of the amending Act) by Finance Act 2017 (c. 10), Sch. 6 para. 7

F3S. 554Z12(9)(10) inserted (with effect in accordance with Sch. 45 para. 153(3) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 128