Income Tax (Trading and Other Income) Act 2005 Schedule 2 paragraph 12

Unpaid remuneration

Schedule 2 paragraph 12 provides transitional rules clarifying what counts as employees' remuneration charged in the accounts for the purposes of the unpaid remuneration rules in section 36, particularly where amounts are held by an intermediary.

• This paragraph supports section 36, which deals with the tax treatment of unpaid employee remuneration
• For accounting periods ending before 27 November 2002, amounts held by an intermediary intended to become employees' remuneration are treated as remuneration charged in the accounts
• For accounting periods ending on or after 27 November 2002, amounts relating to employee benefit contributions made before that date and held by an intermediary with a view to becoming remuneration are also treated as remuneration charged in the accounts
• The distinction between the two periods reflects the introduction of the employee benefit contributions rules in sections 38 to 44, which took effect from 27 November 2002