Income Tax (Earnings and Pensions) Act 2003 section 84

Employee benefit trusts

Section 84 provides a transitional rule for how the definition of "employee" in the employee benefit trust provisions should be interpreted for periods before 6th April 2003.

• This paragraph deals with the definition of "employee" used in the employee benefit trust rules in Chapter 11 of Part 7 of the Act.
• For periods before 6th April 2003, the definition must be read by reference to the old Schedule E tax framework rather than the current employment income provisions.
• Under this transitional reading, an "employee" means a person who held an office or employment and whose earnings (then called emoluments) were taxable under the former Schedule E.
• This ensures continuity so that the employee benefit trust rules can be applied correctly to pre-April 2003 periods, even though the underlying tax legislation changed on that date.