Section 554Z18 — Income Tax (Earnings and Pensions) Act 2003: Earmarking etc

Earmarking etc 554Z18 1 B takes a step within this section if—

a a sum of money or asset held by or on behalf of B is earmarked (however informally) by B with a view to the relevant undertaking being performed at a later time (wholly or partly) out of—

i that sum of money or asset, or ii any sum of money or asset which may arise or derive (directly or indirectly) from it, or b a sum of money or asset otherwise starts being held by or on behalf of B, specifically with a view, so far as B is concerned, to the relevant undertaking being performed at a later time (wholly or partly) out of—

i that sum of money or asset, or ii any sum of money or asset which may arise or derive (directly or indirectly) from it.

2 For the purposes of subsection (1)(b) it does not matter whether or not the sum of money or asset in question has previously been held by or on behalf of B on a basis which is different to that mentioned in subsection (1)(b).

3 Subsection (4) applies if, in the application of section 554Q or 554R in any case, the relevant step mentioned in section 554Q(2)(a) or 554R(6)(a) is a step within this section taken by B.

4 In section 554Q(2)(c) or 554R(6)(c) (as the case may be) the reference to section 554B(1)(a) or (b) is to be read as a reference to subsection (1)(a) or (b) above.