# The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2004, Paragraph 4: Arrangements involving payments to trustees and intermediaries


(1) This paragraph applies to any arrangements under which a payment is to be made by the employer or a person connected with him to—
(a) a trust for the benefit of an employee or a person associated with an employee;
(b) a trust for a class of persons which includes an employee or a person so associated; or
(c) a third party who is entitled or required, under the terms of an employee benefit scheme, within the meaning of Schedule 24 to the Finance Act 2003, to hold or use the payment for or in connection with the provision of benefits to employees of the employer or persons associated with any of those employees.
This is subject to the qualification in sub-paragraph (2).
For the purposes of paragraphs (a) and (b), it is immaterial whether the trust is established under the law of any part of the United Kingdom or of a country or territory overseas.
(2) This paragraph does not apply to payments to the extent that they are made to—
(a) a pension fund listed in sub-paragraph (4);
(b) a fund to which section 329AA of ICTA 1988 (personal injury damages in the form of periodical payments) applies;
(c) the trustees of a trust established for the purposes of—
(i) an approved share incentive plan under Schedule 2 to ITEPA 2003; or
(ii) an approved SAYE option scheme under Schedule 3, or an approved CSOP scheme under Schedule 4, to that Act or both.
(3) Paragraph 3(4) applies to the construction of references in sub-paragraph (2)(c) to approved share plans and schemes as it applies to such references in paragraph 3(3).
(4) The pensions funds are—
(a) those approved under Chapter 1 of Part 14 of ICTA 1988 (retirement benefit schemes);
(b) relevant statutory schemes within section 611A of ICTA 1988 (definition of relevant statutory scheme);
(c) those approved under Chapter 4 of Part 14 of ICTA 1988 (personal pension schemes); and
(d) overseas pension schemes in respect of which tax relief is granted in the United Kingdom under—
(i) section 615 of ICTA 1988 (exemption from tax for superannuation payments in respect of persons not resident in the United Kingdom or in respect of trades carried on wholly or partly outside the United Kingdom);
(ii) arrangements specified in an Order in Council under section 788 of that Act (double taxation agreements); or
(iii) section 390 of ITEPA 2003 (exception from the charge on payments to non-approved schemes for non-domiciled employees with foreign employers).
(5) For the purposes of paragraphs (a) and (c) of sub-paragraph (4), a pension fund for which approval has been sought from the Board is to be treated as if it were approved during the period while the application for approval is before them.

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Source: https://www.legislation.gov.uk/uksi/2004/1863/schedule/paragraph/4 (the official version)
Page: https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-regulations-2004/schedule/paragraph-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.