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E4.1064 Undertakings given by employers etc in relation to retirement benefits etc

ITEPA 2003, Pt 7A, Ch 3 (ss 554Z16–554Z21) deals with the potential interaction between the pensions legislation and the new disguised remuneration rules. Its purpose is to provide for employment income tax charges to arise when an employer gives an undertaking to pay a contribution to an unregistered pension scheme and then assures that the contribution will be paid by either earmarking property for this purpose or otherwise providing security.

ITEPA 2003, Pt 7A, Ch 3 applies if there is an undertaking ('the relevant undertaking'), whether or not conditional or legally enforceable, that a contribution will be paid to which the following apply:

1. Ìý

   •ÌýÌýÌýÌý the contribution is paid to an arrangement which is not a registered pension scheme

2. Ìý

   •ÌýÌýÌýÌý in connection with that arrangement (directly or indirectly), 'relevant benefits' are to be provided (directly or indirectly) out of the contribution by a 'relevant third person'

3. Ìý

   •ÌýÌýÌýÌý the provision of the relevant benefits would be