Section 322 — Income Tax (Earnings and Pensions) Act 2003: Suggestion awards: “the permitted maximum”

Suggestion awards: “the permitted maximum” 322 1 The permitted maximum for an encouragement award for the purposes of section 321 (suggestion awards) is £25.

2 The permitted maximum for a financial benefit award where no such award for the suggestion has been made before is—

a if only one such award is made for the suggestion, the suggestion maximum, and b if two or more such awards are made on the same occasion to different persons for the suggestion, the appropriate proportion of the suggestion maximum.

3 If on a later occasion or occasions one or more further such awards are made for the same suggestion, the permitted maximum for each is—

a if only one such award is made for the suggestion on that occasion, the residue of the suggestion maximum, and b if two or more such awards are made on the same occasion to different persons for the suggestion, the appropriate proportion of that residue.

4 The suggestion maximum for a financial benefit award is the financial benefit share or £5000 if that is less.

5 In subsection (4) “ the financial benefit share ” means the greater of—

a half the financial benefit reasonably expected to result from the adoption of the suggestion for the first year after its adoption, and b one-tenth of the financial benefit reasonably expected to result from its adoption for the first 5 years after its adoption.

6 In this section— “ the appropriate proportion ” means such proportion as the award bears to the total of the financial benefit awards made on the same occasion for the suggestion, “ the residue of the suggestion maximum ” means the suggestion maximum less the total previous exemption, and “ the total previous exemption ” means the total of the amounts exempted from income tax under section 321 in respect of financial benefit awards for the suggestion made on previous occasions.