Corporation Tax Act 2009 section 1292

Provision of qualifying benefits

Section 1292 defines what counts as a "qualifying benefit" for the purposes of the employee benefit contributions rules in section 1290, which restrict the timing of corporation tax deductions.

• A qualifying benefit is a payment of money or transfer of assets that meets one of four conditions — broadly, it triggers an income tax and NIC charge, would do so if the work were UK-based, relates to termination of employment, or is made under an employer-financed retirement benefits scheme
• Loans are specifically excluded — a payment or transfer made by way of loan cannot satisfy any of the four conditions
• Additional qualifying benefits arise where a "relevant step" is taken under the disguised remuneration rules in Part 7A of ITEPA 2003 and those rules apply
• A payment that is exempt from income tax under the limited exemption for qualifying bonus payments (section 312A of ITEPA 2003) also counts as a qualifying benefit to the extent of that exemption