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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Employment income provided through third parties: relevant steps: Section 554C: sum of money or asset made available

Section 554C(1)(d) ITEPA 2003

In certain circumstances, a relevant third person (P) will take a relevant step within Section554C(1)(d) if the person makes available a sum of money or asset.

The four circumstances are listed below.

  • P makes available a sum of money or asset for use as security for a loan made (or to be made) to a ‘relevant person’ (see EIM45090).

Notice that ‘relevant third person’ and ‘relevant person’ are different concepts.

  • P makes available a sum of money or asset for use in some other way as security for the meeting of any liability (or the performance of any undertaking) which a relevant person has or will have.
  • P makes a sum of money or asset available under an arrangement which permits its use as security for a loan made (or to be made) to a relevant person.
  • P makes a sum of money or asset available under an arrangement which permits its use in some other way as security for the meeting of any liability (or the performance of any undertaking) which a relevant person has or will have.

It does not matter if:

  • the sum of money or asset is made available informally,
  • the relevant person has no legal right to have the sum of money or asset used as mentioned above, or
  • the sum of money or asset is not actually used as mentioned above.

In Section 554C(1)(d), ‘makes available’ means ‘begins to make available’ not ‘continues to make available’. Section 554C(1)(d) defines a step, not a state.

On ‘arrangement’, see EIM45855.

Special rules apply if the asset is made available between 9 December 2010 and 5 April 2011 inclusive. See EIM45915 onwards.