Corporation Tax Act 2009 section 1291

Making of "employee benefit contributions"

Section 1291 defines what constitutes an "employee benefit contribution" and an "employee benefit scheme" for the purposes of restricting corporation tax deductions under section 1290.

• An employee benefit contribution arises when property is placed into, or increases in value within, an employee benefit scheme, or when liabilities under such a scheme are reduced
• An employee benefit scheme is any trust, scheme, or arrangement that benefits current or former employees of the employer, or persons linked with those employees
• The definition of "linked persons" follows the rules in section 554Z1 of ITEPA 2003, treating references to the relevant individual as references to a present or former employee of the employer
• The definition of employee benefit scheme is extended to cover certain third-party arrangements caught by the disguised remuneration rules in sections 554A and 554AA of ITEPA 2003, as well as any arrangements connected with them