Income Tax (Earnings and Pensions) Act 2003 section 554Z18

Earmarking etc.

Section 554Z18 defines what constitutes an earmarking step by a third party (B) in the context of undertakings given by employers in relation to retirement benefits provided through third parties.

• B takes a relevant step if money or an asset already held by or on behalf of B is earmarked (even informally) with a view to fulfilling a relevant undertaking at a later date, using either that money or asset or anything derived from it
• B also takes a relevant step if money or an asset newly comes into B's possession specifically for the purpose of later fulfilling a relevant undertaking, regardless of whether B previously held the same money or asset on a different basis
• The earmarking does not need to be formal — an informal designation of funds or assets for this purpose is sufficient to trigger the provision
• Where the exclusions in sections 554Q or 554R apply and the relevant step is an earmarking step under this section, references in those exclusions to section 554B are read as references to section 554Z18 instead