Section 146 – Meaning of “qualifying employee” and “qualifying partner” in Section 145
268.Subsection (1) sets out “qualifying partner” where the trade mentioned in section 145 is carried out in partnership. It includes any individual member of the partnership with less than 10% share of the income profits of the partnership, in any company that beneficially owns the interest or in the partnership assets.
269.Subsection (2) sets out that “qualifying employee” means an individual employed for the purposes of the qualifying trade who has less than a 10% share of the income profits of the trade, in any company that beneficially owns the interest or in the single dwelling interest, except one who provides “excluded domestic services”.
270.Subsection (3) defines excluded domestic services as employment duties that include the provision of services in connection with the occupation of the relevant dwelling (or a linked dwelling) by a non-qualifying individual.
271.Subsection (4) defines a “non-qualifying individual” as an individual connected to a beneficial owner of the interest.
272.Subsection (5) sets out when dwellings will be “linked” for the purposes of subsection (3). The first circumstance is where section 116(2) applies regarding a relevant dwelling and another dwelling. The second is one where a dwelling is linked to the relevant dwelling under section 117(1).
273.Subsection (6) sets out that employment includes the holding of an office.
274.Subsection (7) provides that, for the purposes of subsections (1)(c) and (2)(a)(iii), beneficial joint tenants (or, in Scotland, joint owners) entitled to a chargeable interest are treated as beneficial tenants in common (or, in Scotland, as owners in common) in equal shares.
