Finance Act 1989

8 (1) The following section shall be inserted after section 646— U.K.

“646A Earnings from associated employments.

(1) This section applies where in the year of assessment in question—

(a) an individual holds two or more offices or employments which areassociated in that year,

(b) one or more of them is an office or employment to which section 645applies (“pensionable job”), and

(c) one or more of them is an office or employment to which that section doesnot apply (“non-pensionable job”).

(2) Where the emoluments for that year from the pensionable job (or jobs) areequal to or exceed the allowable maximum for that year, section 646(1) shallhave effect in the case of the individual as if the references to relevantearnings were references to relevant earnings not attributable to thenon-pensionable job (or jobs).

(3) Where the allowable maximum for that year exceeds the emoluments for thatyear from the pensionable job (or jobs), the individual’s net relevantearnings, so far as attributable to the non-pensionable job (or jobs), shallnot be greater than the amount of the excess.

(4) For the purposes of this section two or more offices or employments heldby an individual in a year of assessment are associated in that year if theemployers in question are associated at any time during it.

(5) For the purposes of subsection (4) above, employers are associated if(directly or indirectly) one is controlled by the other or if both arecontrolled by a third person.

(6) In subsection (5) above the reference to control, in relation to a bodycorporate, shall be construed—

(a) where the body corporate is a close company, in accordance with section416, and

(b) where it is not, in accordance with section 840.

(7) In this section “the allowable maximum” has the same meaning as in section640A(1).”

(2) This paragraph shall have effect for the year 1989-90 and subsequent yearsof assessment.