Paragraph 8 Relevant onward paymentsF1

(1)

For the purposes of this Part of this Schedule a payment is a “relevant onward payment” if or to the extent that—

(a)

the payment is made by a company to which a relevant compensation payment was made,

(b)

the payment is to an individual and—

(i)

the individual is or was a director or employee of the company, or

(ii)

the payment is a distribution by the company to shareholders, and

(c)

it is reasonable to conclude from the circumstances that the payment is made by the company to the individual for the purpose of passing on all or part of the compensation payment mentioned in paragraph (a) to the individual.

(2)

But where sub-paragraph (3) applies to the relevant compensation payment mentioned in sub-paragraph (1)(a), a payment to an individual is a relevant onward payment for the purposes of this Part of this Schedule only so far as it relates to such part of the relevant compensation payment as was made for the purpose of topping up the amount of compensation paid to account for sums lost to tax.

(3)

This sub-paragraph applies to a relevant compensation payment—

(a)

made (at any time) under the Horizon Shortfall Scheme;

(b)

made before 1 January 2024 under the Suspension Remuneration Review.

Annotations

Textual amendments

F1: Sch. 15 Pt. 2 inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 12(2)