Income Tax (Earnings and Pensions) Act 2003 section 212

Scholarships provided under arrangements entered into by employer or connected person

Section 212 extends the circumstances in which a scholarship provided to a member of an employee's family or household is treated as a taxable employment-related benefit.

• A scholarship for a member of an employee's family or household is treated as provided by reason of the employment if it is arranged by the employer or a person connected with the employer
• This applies whether or not the employer or connected person contributes directly or indirectly to the cost of the scholarship
• An exception applies where the employer is an individual and the scholarship arrangements are made in the normal course of domestic, family or personal relationships
• This section does not override the general provisions in section 201(3) regarding employment-related benefits