C5C11C6F4Part 7AEmployment income provided through third parties
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(6)
Pt. 7A modified (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 1(8)
Pt. 7A modified (22.7.2020) by 2017 c. 32, Sch. 11 para. 1A(2)(6) (as inserted by Finance Act 2020 (c. 14), s. 16(3))
C2C1C3C5C7C4C9C11C10C6C8CHAPTER 2Treatment of relevant step for income tax purposes
Pt. 7A Ch. 2 disapplied (with effect in accordance with reg. 1(2) of the amending S.I.) by The Employment Income Provided Through Third Parties (Excluded Relevant Steps) Regulations 2011 (S.I. 2011/2696), regs. 1(1), 3, 4
Pt. 7A Ch. 2 excluded (6.4.2017) by The Sporting Testimonial Payments (Excluded Relevant Step) Regulations 2016 (S.I. 2016/1250), regs. 1(1), 2(1) (with reg. 2(2))
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 29(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 27(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 35(1)
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 25
Pt. 7A Ch. 2 excluded (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 11 para. 31
Pt. 7A Ch. 2 excluded (22.7.2020) by 2017 c. 32, Sch. 11 para. 35ZA (as inserted by Finance Act 2020 (c. 14), Sch. 2 para. 38)
Remittance basis
554Z9Remittance basis: F8A does not meet section 26A requirement
1
F6Subsections (2) and (2A) apply if—
a
the value of the relevant step, or a part of it, is “for” a tax year (“the relevant tax year”) as determined under section 554Z4,
b
section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to A for the relevant tax year,
F2c
A does not meet the requirement of section 26A for the relevant tax year (reading references there to the employee as references to A),
d
A's employment with B in the relevant tax year is employment with a foreign employer, and
e
the duties of A's employment with B in the relevant tax year are performed wholly outside the United Kingdom.
F71A
But F5subsections (2) and (2A) do not apply if section 24A applies in relation to A's employment with B for the relevant tax year.
2
F1Except in a case within subsection (2A), A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in a tax year so far as it is remitted to the United Kingdom in that year.
F102A
Where the relevant step is within paragraph 1 of Schedule 11 to F(No. 2)A 2017, A's employment income by virtue of section 554Z2(1), or the relevant part of it, is “taxable specific income” in the tax year in which the relevant step is treated as being taken so far as the income is remitted to the United Kingdom in that tax year or in any previous tax year.
3
For F3the purposes of subsections (2) and (2A), any income which is remitted before A's employment with B starts is treated as being remitted in the tax year in which the employment starts.
4
Subsection (5) applies if in the relevant tax year—
a
A has associated employments, and
b
the duties of the associated employments are not performed wholly outside the United Kingdom.
5
The amount of A's employment income to which F14subsection (2) or (2A) applies is limited to such amount as is just and reasonable, having regard to—
a
A's employment income for the relevant tax year from all associated employments, together with A's employment with B,
b
the proportion of that income F11(or of so much of it as is attributable to the UK part of the relevant tax year, if it was a split year as respects A) which is general earnings to which section 22 applies or is employment income to which section 41A applies,
c
the nature of and time devoted to the duties performed outside the United Kingdom, and those performed in the United Kingdom, in the relevant tax year F9(or the UK part of it), and
d
all other relevant circumstances,
6
In this section “associated employments” means employments with B or with employers associated with B; and section 24(5) and (6) applies for the purposes of this subsection.
Pt. 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