Regulation 26 Certain payments by trustees to be disregarded

(1)

For the purposes of earnings-related contributions, there shall be excluded from the calculation of a person’s earnings in respect of any employed earner’s employment any payment, or any part of a payment—

(a)

which is made by trustees before 6th April 1990;

(b)

the amount of which is or may be dependent upon the exercise by the trustees of a discretion or the performance by them of a duty arising under the trust;

(c)

not being a sickness payment which by virtue of section 4(1) of the Act (payments treated as remuneration and earnings) is treated as remuneration derived from an employed earner’s employment,

and in respect of which either paragraph (2) or (3) is satisfied.

(2)

This paragraph is satisfied if the trust, under which the payment is made, was created before 6th April 1985.

(3)

This paragraph is satisfied if—

(a)

the trust, under which the payment is made, was created on or after 6th April 1985;

(b)

that trust took effect immediately on the termination of a trust created before 6th April 1985;

(c)

the person to whom the payment is made either—

(i)

was a beneficiary under the earlier trust, or

(ii)

would have been such a beneficiary if, while the earlier trust was subsisting, he had held the employment in respect of which the payment is made; and

(d)

there were or are payments under the earlier trust which in the case of payments made on or after 6th October 1987, are payments made in circumstances to which sub-paragraphs (a), (b) and (c) apply.

Notes on the whole SI

Textual amendments

F1: See sections 3(2) and (5), 4(5) and (6), 116, 117, 118, 119 and 120 of the Social Security Contributions and Benefits Act 1992 (c. 4) (“the Act”) as amended respectively by paragraphs 3, 4, 22, 23, 24, 25 and 26 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (“the Transfer Act”). The functions of the Department of Health and Social Services for Northern Ireland under the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) and the Social Security Administration (Northern Ireland) Act 1992 (c. 8) were transferred to the Department for Social Development by Article 8(b) of and Part II of Schedule 6 to the Departments (Transfer and Assignment of Functions) Order (Northern Ireland) 1999 (S.R. 1999 No. 481).
F2: See section 176(2)(b) of the Act.