Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 492: No charge on partnership share money deducted from salary
2025.This section is the third of four that deal with the tax advantages connected with the award of shares. It provides that an employee is not liable to income tax under Part 2 where partnership share money is deducted from the employee’s salary under a partnership share agreement. The expressions “partnership share agreement” and “partnership share money” are defined in Schedule 2 (in paragraphs 44 and 45 respectively); and these expressions may also be found in the index of defined expressions in paragraph 100 at the end of that Schedule.
2026.This section derives from paragraph 83 of Schedule 8 to FA 2000.