Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 388: Apportionment of payments in respect of more than one employee
1687.This section derives from section 596(4) of ICTA. It provides that where a single payment is made to a non-approved scheme in respect of more than one employee, that payment is apportioned between the employees. Each is taxed only on an appropriate share of the payment.
1688.Subsection (2) introduces a formula for making the apportionment.