Section 554P — Income Tax (Earnings and Pensions) Act 2003: Exclusions: employment income exemptions under Part 4

Exclusions: employment income exemptions under Part 4 554P 1 Chapter 2 does not apply by reason of a relevant step if an employment income exemption under Part 4 applies to the subject of the relevant step.

2 If the employment income exemption applies to the subject of the relevant step in part only, the relevant step is to be treated for the purposes of this Part as being two separate relevant steps—

a one in relation to the subject of the step so far as the exemption applies to it, and b one in relation to the subject of the step so far as the exemption does not apply to it, with subsection (1) applying only in relation to the separate relevant step mentioned in paragraph (a).

3 In order to give effect to subsection (2), the sum of money or asset which is the subject of the relevant step is to be apportioned between the two separate relevant steps on a just and reasonable basis.

4 In this section “ employment income exemption ” includes the exemption under section 271.