EIM45060 - Employment income provided through third parties: relevant steps: Section 554C: overview

Section 554C ITEPA 2003

A relevant third person (P) takes a relevant step if (to summarise) the person:

  • pays a sum of money, transfers an asset, or grants a lease which is likely to have an effective duration exceeding 21 years, and
  • does so in favour of a 鈥榬elevant person鈥�.

Relevant steps within Section 554C

The actions listed below are relevant steps within Section 554C.

  • Section 554C(1)(a) P pays a sum of money to a 鈥榬elevant person鈥�.

Notice that 鈥榬elevant third person鈥� and 鈥榬elevant person鈥� are different concepts.

  • Section 554C(1)(b) P transfers an asset to a relevant person.
  • Section 554C(1)(c) P takes a step by which a relevant person acquires:
  • securities,
  • interests in securities, or
  • securities options.

In certain circumstances, P will also take a relevant step within Section 554C if:

  • Section 554C(1)(d) the person makes available a sum of money or asset, or
  • Section 554C(1)(e) the person grants a lease.

On Section 554C(1)(a), see EIM45065.

On Section 554C(1)(d), see EIM45070.

On Section 554C(1)(e), see EIM45075.

On 鈥榬elevant person鈥�, see EIM45090.

Acquiring securities, interests in securities and securities options

鈥楽ecurities鈥�, 鈥榠nterests in securities鈥� and 鈥榮ecurities options鈥� have the meanings given by Section 420 ITEPA 2003.

Under Section 421B(2)(a) ITEPA 2003, securities etc are 鈥榓cquired鈥� at the time when the person acquiring them becomes beneficially entitled to them and not, if different, the time when they are conveyed or transferred.