76.—(1) Where an applicant stands in a position analogous to that of a sole owner or partner in relation to a company which is carrying on a trade or a property business, the applicant is to be treated, for the purposes of this Part, as the sole owner or partner.
(2) Where paragraph (1) applies, the applicant is to be treated, subject to paragraph (3)(a), as possessing an amount of capital equal to the value, or the applicant’s share of the value, of the capital of the company and the value of the applicant’s holding in the company is to be disregarded.
(3) Where paragraph (1) applies in relation to a company which is carrying on a trade—
(a)any assets of the company that are used wholly and exclusively for the purposes of the trade are to be disregarded from the applicant’s capital while they are engaged in activities in the course of that trade, and
(b)the income of the company or the applicant’s share of that income is to be treated as the applicant’s income and calculated in the manner set out in regulation 51 (self-employed earnings) as if it were self-employed earnings.
(4) Any self-employed earnings which the applicant is treated as having by virtue of paragraph (3)(b) are in addition to any employed earnings the applicant receives as a director or employee of the company.
(5) This regulation does not apply where the applicant derives income from the company that is employed earnings by virtue of Chapter 8 (workers under arrangements made by intermediaries), Chapter 9 (managed service companies) or Chapter 10 (workers’ services provided through intermediaries) of Part 2 of ITEPA and that income is derived from activities that are the applicant’s main employment.
(6) In paragraph (1) “property business” has the meaning in section 204 of the Corporation Tax Act 2009(1).