BIM44525 - Specific deductions - employee benefit trusts: used with accident benefit schemes
S38(4), S44(1) Income Tax (Trading and Other Income) Act 2005, S1290(4), S1296(1) Corporation Tax Act 2009
Employers may contribute to trusts set up to provide benefits (usually relatively small) to employees who suffer injuries at work, or to their families. Typically the trust is set up by a trade union or employers바카라 사이트™ organisation in a particular industry sector and employers contribute on a per employee/per week basis. As and when an appropriate injury or disability occurs a contributing employer or the employee may approach the trustees and ask for payments to be made in accordance with the rules of the scheme.
An employer바카라 사이트™s contribution to a trust set up solely to provide accident benefits to employees is an allowable deduction in computing the taxable profits from the employer바카라 사이트™s trade.
Timing of deduction
The timing of the deduction follows the treatment of the employer바카라 사이트™s contribution in its accounts prepared in accordance with generally accepted accounting practice (GAAP). Deductions for contributions to an accident benefit scheme are specifically excluded from the employee benefit contribution anti-avoidance legislation.
An accident benefit scheme is defined for the purpose of the exclusion as a 바카라 사이트˜scheme under which benefits may be provided only by reason of a person바카라 사이트™s disablement, or death, caused by an accident occurring during his service as an employee of the employer바카라 사이트™.