Section 554Z6 — Income Tax (Earnings and Pensions) Act 2003: Overlap with certain earnings

Overlap with certain earnings 554Z6 1 This section applies if the relevant step gives rise to relevant earnings of A from A's employment with B—

a which are, in accordance with section 16 and (if applicable) section 17, “for” a tax year in which A is UK resident (and, in the case of a tax year that is a split year as respects A, are not “excluded” by virtue of section 15(1A)(a) and (b)(i)) , or b which are, in accordance with section 29 and (if applicable) section 30, “for” a tax year in which A is non-UK resident but which are in respect of duties performed in the United Kingdom for the purposes of section 27(1)(a).

2 The value of the relevant step (after any reductions under section 554Z4 or 554Z5) is reduced (but not below nil) by the amount of the relevant earnings.

3 For the purposes of this section the following are “relevant” earnings—

a earnings within Chapter 1 of Part 3, b amounts treated as earnings under Chapter 12 of Part 3, and c a deemed employment payment under section 50 or any part of such a payment.

4 But anything which is exempt income, or which falls within Chapter 3 of Part 4 of ITTOIA 2005, is not “relevant”.