Section 554Z4A — Income Tax (Earnings and Pensions) Act 2003: Temporary non-residents

Temporary non-residents 554Z4A 1 This section applies if A is temporarily non-resident.

2 Any relevant step within subsection (3) is to be treated for the purposes of section 554Z2 as if it were taken in the period of return.

3 A relevant step is within this subsection if—

a it is the payment of a lump sum to a relevant person (see section 554C(2)),

b the lump sum is a relevant benefit provided under a relevant scheme, c the step is taken in the temporary period of non-residence, and d ignoring this section—

i no charge to tax arises by virtue of section 554Z2 by reason of the step, but ii such a charge would arise if the existence of any double taxation relief arrangements were disregarded.

4 Subsection (3)(d)(i) includes a case where the charge could be prevented by making a DTR claim, even if no claim is in fact made.

5 Nothing in any double taxation relief arrangements is to be read as preventing A from being chargeable to income tax in respect of any relevant step treated by virtue of this section as taken in the period of return (or as preventing a charge to that tax from arising as a result).

6 Part 4 of Schedule 45 to FA 2013 (statutory residence test: anti-avoidance) explains—

a when an individual is to be regarded as “temporarily non-resident”, and b what “the temporary period of non-residence” and “the period of return” mean.

7 In this section— “ double taxation relief arrangements ” means arrangements that have effect under section 2(1) of TIOPA 2010; “ DTR claim ” means a claim for relief under section 6 of that Act; “ relevant benefit ” has the same meaning as in Chapter 2 of Part 6; “ relevant scheme ” means an employer-financed retirement benefits scheme (within the meaning of that Chapter) or a superannuation fund to which section 615(3) of ICTA applies.