Section 213 — Income Tax (Earnings and Pensions) Act 2003: Exception for certain scholarships under trusts or schemes

Exception for certain scholarships under trusts or schemes 213 1 This Chapter does not apply to an employment-related benefit consisting in the provision of a scholarship if conditions A, B, C and D are met.

2 Condition A is that the scholarship would not be regarded as provided by reason of the employment if section 201(3) and section 212 were disregarded.

3 Condition B is that the holder of the scholarship is a full-time student.

4 Condition C is that the scholarship is provided from a trust fund or under a scheme.

5 Condition D is that, in the tax year in which the scholarship is provided, not more than 25% of the total amount of relevant payments is attributable to scholarships provided by reason of a person’s employment.

6 For the purposes of conditions B and D “ full-time student ” means a person who is in full-time education at a university, college, school or other educational establishment.

7 For the purposes of condition D— “ employment ” includes any employment within the meaning of the employment income Parts (see section 4), whether or not it is a taxable employment under Part 2; “ relevant payments ” means the payments made from the fund or scheme mentioned in condition C in respect of scholarships held by full-time students.