Finance Act 2010

9 (1) An employee of a taxable company is a relevant banking employee of the taxable company if— U.K.

(a) the employment in which the employee is employed by the taxable company is a banking employment, and

(b) either—

(i) the employee is resident in the United Kingdom in the tax year 2009-10, or

(ii) the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.

(2) “Banking employment” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.

(3) This sub-paragraph applies to activities which are—

(a) listed regulated activities, or

(b) activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.

(4) “Listed regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)—

(a) article 5 (accepting deposits),

(b) article 14 (dealing in investments as principal),

(c) article 21 (dealing in investments as agent),

(d) article 25 (arranging deals in investments),

(e) article 40 (safeguarding and administering investments),

(f) article 53 (advising on investments), and

(g) article 61 (entering into regulated mortgage contracts).

(5) But an activity is not a listed regulated activity in relation to an employee of a taxable company if—

(a) the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or

(b) it—

(i) is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and

(ii) is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.

(6) An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.

(7) In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.

(8) But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—

(a) the individual departs from the United Kingdom on the next day, and

(b) during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.