EIM06641 - Employment income: exemption for suggestion scheme awards: two or more awards for same suggestion on same occasion: example
Section 322(2) ITEPA 2003
Two employees, A and B, make a joint suggestion under a staff
suggestion scheme which satisfies the conditions in Section 321
ITEPA 2003 (see
EIM06610). Their employer decides to
award £2,000 to A and £1,000 to B. The employer
calculates the suggestion maximum for the suggestion as £4,500
(see
EIM06630).
For employee A, the permitted maximum is:
| £2,000 | x | £4,500 | = | £3,000 |
| £2,000 + £1,000 |
This is more than £2,000, so A’s award is entirely
exempt.
For employee B, the permitted maximum is:
| £1,000 | x | £4,500 | = | £1,500 |
| £2,000 + £1,000 |
This is more than £1,000, so B’s award is entirely
exempt.
As only £3,000 of the suggestion maximum has been used,
the balance of £1,500 is available if the employer decides to
make a later award in respect of the same suggestion (see
EIM06650).
See also example
EIM06642.
