Income Tax (Earnings and Pensions) Act 2003 section 554D

Relevant steps: making asset available

Section 554D defines what constitutes a "relevant step" when a person makes an asset available for someone to benefit from without actually transferring ownership of that asset.

• A relevant step occurs when someone makes an asset available for a relevant person to benefit from in a way substantially similar to outright ownership, or at any point from two years after the employee's employment ends
• If the asset was already being made available before the two-year post-employment period expires and continues to be available afterwards, a relevant step is treated as occurring at the end of that two-year period
• Making an asset available covers any arrangement, however informal, regardless of whether the relevant person has a legal right to benefit or actually derives any benefit from it
• When deciding whether the arrangement is substantially similar to ownership, factors such as restrictions on use, the duration of availability relative to the asset's useful life, and the relevant person's control over disposal or proceeds are all taken into account

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