5(1)Part 7A of ITEPA 2003 (employment income provided through third parties) is amended in accordance with this paragraph.U.K.
(2)In the italic heading before section 554A, at the end insert “ : main case ”.
(3)In the heading of section 554A, at the end insert “ : main case ”.
(4)In section 554Z(2) (interpretation: “A” and “B”) at the end insert “ or, as the case may be, section 554AA(1) ”.
6U.K.In section 39(4) of ITTOIA 2005 (meaning of “employee benefit scheme”), for paragraph (a) (but not the “or” following it) substitute—
“(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,”.
7U.K.In section 1291(4) of CTA 2009 (meaning of “employee benefit scheme”), for paragraph (a) (but not the “or” following it) substitute—
“(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,”.
8(1)Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended in accordance with this paragraph.U.K.
(2)In paragraph 1 (relevant step)—
(a)in sub-paragraph (3), for “section 554A(1)(e)(i) and (ii)” substitute “ sections 554A(1)(e)(i) and (ii) and 554AA(1)(h)(i) and (ii) ”;
(b)in sub-paragraph (6)—
(i)for “Sub-paragraph (1) is” substitute “ Sub-paragraphs (1) and (2) are ”, and
(ii)at the end insert “ and paragraph 36A (double taxation: close companies) ”.