Finance Act 1998

Conditions for exemption of partnerships

3 (1) In subsection (2A) of section 564 (certificates for partnerships), for the words from “that” to the end there shall be substituted “that the carrying on of the firm’s business is likely to involve—

(a) the receipt, annually in the period to which the certificate would relate, of an aggregate amount by way of relevant payments which is not less than the sum specified in subsection (2B) below; or

(b) the receipt, annually in the period to which the certificate would relate, of an aggregate amount by way of construction contract payments which is not less than the amount specified for the purposes of this paragraph in regulations made by the Board.”

(2) After that subsection there shall be inserted the following subsection—

“(2AA) In subsection (2A)(a) above “relevant payments” has the meaning given by section 562(2B).”

(3) After subsection (2B) of that section there shall be inserted the following subsection—

“(2C) In subsection (2A)(b) above “construction contract payments” means payments under contracts relating to, or to the work of individuals participating in the carrying out of, any operations which—

(a) are of a description specified in subsection (2) of section 567; but

(b) are not of a description specified in subsection (3) of that section,

other than so much of the payments as represents the direct cost to the firm of materials used or to be used in carrying out the operations in question.”