Finance Act 1995

7 (1) After subsection (2) of section 565 of that Act there shall be inserted the following subsections— U.K.

“(2A) The company must either—

(a) satisfy the Board, by such evidence as may be prescribed in regulations made by them, that the carrying on of its business is likely to involve the receipt, annually in the period to which the certificate would relate, of an aggregate amount by way of relevant payments which is not less than the amount which is the minimum turnover for the purposes of this subsection; or

(b) satisfy the Board that the only persons with shares in the company are companies which are limited by shares and themselves excepted from section 559 by virtue of a certificate which is in force under section 561;

and in this subsection “relevant payments” has the meaning given by section 562(2B).

(2B) The minimum turnover for the purposes of subsection (2A) above is whichever is the smaller of—

(a) the amount obtained by multiplying the amount specified in regulations as the minimum turnover for the purposes of section 562(2A) by the number of persons who are relevant persons in relation to the company; and

(b) the amount specified for the purposes of this paragraph in regulations made by the Board.

(2C) For the purposes of subsection (2B) above a person is a relevant person in relation to the company—

(a) where the company is a close company, if he is a director of the company (within the meaning of Chapter II of Part V) or a beneficial owner of shares in the company; and

(b) in any other case, if he is such a director of the company.”

(2) After subsection (8) of that section there shall be inserted the following subsection—

“(8A) Subject to subsection (4) above, a company shall not be taken for the purposes of this section to have complied with any such obligation or request as is referred to in subsections (3) to (7) above if there has been a contravention of a requirement as to the time at which, or the period within which, the obligation or request was to be complied with.”

Commencement Information

I1 Sch. 27 para. 7 in force at Royal Assent but shall have effect from 1.8.1999 by S.I. 1998/2620, art. 3 (see s. 139(3))