BIM44595 - Specific deductions: Employee
benefit trusts: general purpose EBT contributions: timing of
deductions: FA03/SCH24: qualifying benefits
The general rule is that a qualifying benefit is a payment of
money (not a loan), or the transfer of ownership of an asset, the
amount or value of which:
- is chargeable to income tax, on the
recipient or someone else, and
- gives rise to a liability to pay Class 1,
1A or 1B National Insurance Contributions (or would do if the
amounts were above the primary or secondary thresholds for paying
NICs).
There are two exceptions to this general rule. Payments of money
and transfers of assets in the following circumstances are also
‘qualifying benefits’:
- where the payment or transfer is made in
connection with the termination of the recipient’s
employment, regardless of whether it gives rise to an income tax
charge or NICs liability, or
- where there is no income tax charge or
NICs liability on the money or assets received because the employee
works outside the UK.
