»Ê¹ÚÌåÓýapp

Section 386 ITEPA 2003

Note: Section 386 ITEPA 2003 is repealed with effect from 6 April 2006 (see first bullet point of the final paragraph at EIM15400)

Example 1

On 1 January 2006, a company pays £100,000 into a trust set up to provide retirement benefits for Mrs A, an employee. »Ê¹ÚÌåÓýapp scheme is not approved (see EIM15407).

»Ê¹ÚÌåÓýapp PAYE Regulations do not apply (see EIM15433) and the trustees receive £100,000. »Ê¹ÚÌåÓýapp payment is entered on form P11D (see EIM15431).

£100,000 is included in Mrs A’s self assessment computation for 2005/06 (see EIM15411) as employment income.

Example 2

On 1 January 2006, a company pays £100,000 into a trust set up to provide retirement benefits for all its 500 employees. »Ê¹ÚÌåÓýapp scheme is not approved (see EIM15407).

Each employee includes £200 in his or her self assessment computation for 2005/06 (see EIM15411) as employment income.

See EIM15412 for background.