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

Power to exclude other relevant steps

Section 554Y gives HMRC the power to make regulations that exclude certain relevant steps or situations from the disguised remuneration rules in Chapter 2.

• HMRC may issue regulations disapplying Chapter 2 for specified types of relevant step or in other specified circumstances
• Regulations may split a single relevant step into two or more separate steps, exempting only some of them and apportioning the money or asset involved on a just and reasonable basis
• Where an exemption has been granted, regulations may provide for Chapter 2 to apply after all if specified conditions are subsequently met or not met
• The regulations may have retrospective effect and may include incidental, supplemental, consequential and transitional provisions