[F111A(1)In the case of a profit sharing scheme, scheme shares must not be shares—U.K.
(a)in an employer company, or
(b)in a company that—
(i)has control of an employer company, and
(ii)is under the control of a person or persons within sub-paragraph (2)(b)(i) below in relation to an employer company.
(2)For the purposes of this paragraph a company is “an employer company” if—
(a)the business carried on by it consists substantially in the provision of the services of the persons employed by it, and
(b)the majority of those services are provided to—
(i)a person who has, or two or more persons who together have, control of the company, or
(ii)a company associated with the company.
(3)For the purposes of sub-paragraph (2)(b)(ii) above a company shall be treated as associated with another company if both companies are under the control of the same person or persons.
(4)For the purposes of sub-paragraphs (1) to (3) above—
(a)references to a person include a partnership, and
(b)where a partner, alone or together with others, has control of a company, the partnership shall be treated as having like control of that company.
(5)For the purposes of this paragraph the question whether a person controls a company shall be determined in accordance with section 416(2) to (6).]
Textual Amendments
F1Sch. 9 para. 11A inserted (21.3.2000) by Finance Act 2000 (c. 17), s. 52(3)(5) (with s. 52(6))