EIM30002 - Benefits: scholarships provided for members of the family or household of a director or employee: extended meaning of
Section 212 ITEPA 2003
A scholarship is provided 鈥渂y reason of a person鈥檚 employment鈥� if:
- it falls within the ordinary meaning of those words (see EIM20503), or
- it was provided by the person鈥檚 employer (see EIM20502), or
- it was provided under arrangements entered into by his employer or a person connected with his employer whether or not the arrangements require the employer or a connected person to contribute directly or indirectly to the cost of providing the scholarship.
鈥淐onnected person鈥� has the meaning given in Section 839 ICTA 1988 (see CG14580 onwards).
Many scholarship schemes take the form of educational trusts set up by the employer or a third party. They are arrangements, which can give rise to chargeable benefits. They do so if scholarships are awarded to an individual who is a member of a director鈥檚 or employee鈥檚 family or household by reason of the employment of that director or employee.