PART V PROVISIONS RELATING TO THE SCHEDULE E CHARGE
CHAPTER IV OTHER EXEMPTIONS AND RELIEFS
Other expenses, subscriptions etc.
201AF1 Expense of entertainers.
1
Where emoluments of an employment to which this section applies fall to be charged to tax for a year of assessment for which this section applies, there may be deducted from the emoluments of the employment to be charged to tax for the year—
a
fees falling within subsection (2) F2or (2A)below, and
b
any additional amount paid by the employee in respect of value added tax charged by reference to those fees.
2
Fees fall within this subsection if—
a
they are paid by the employee to another person,
b
they are paid under a contract made between the employee and the other person, who agrees under the contract to act as an agent of the employee in connection with the employment,
c
at each time any of the fees are paid the other person carries on an employment agency with a view to profit and holds a current licence for the agency,
d
they are calculated as a percentage of the emoluments of the employment or as a percentage of part of those emoluments, and
e
they are defrayed out of the emoluments of the employment falling to be charged to tax for the year concerned.
F32A
Fees fall within this subsection if—
a
they are paid by the employee in pursuance of an arrangement under which a bona fide co-operative society agrees, or the members of such a society agree, to act as agent of the employee in connection with the employment,
b
they are calculated as a percentage of the emoluments of the employment or as a percentage of part of those emoluments, and
c
they are defrayed out of the emoluments of the employment falling to be charged to tax for the year concerned.
3
For the purposes of subsection (2) above—
a
“employment agency” means an employment agency within the meaning given by section 13(2) of the Employment Agencies Act 1973, and
b
a person holds a current licence for an employment agency if he holds a current licence under that Act authorising him to carry on the agency.
F43A
Subsection (3) of section 1 of the Industrial and Provident Societies Act 1965 (co-operative society does not include profit-making society) shall apply for the purposes of subsection (2A)(a) above as it applies for the purposes of that section.
4
The amount which may be deducted by virtue of this section shall not exceed 17.5 per cent. of the emoluments of the employment falling to be charged to tax for the year concerned.
F54A
Subject to subsection (4) above, a deduction by virtue of this section as regards a particular employment and a particular year of assessment may be based on fees falling within subsection (2) above or fees falling within subsection (2A) above, or both.
5
This section applies to employment as an actor, singer, musician dancer or theatrical artist.
6
This section applies for the year 1990-91 and subsequent years of assessment.