Search Legislation

Income Tax (Earnings and Pensions) Act 2003

 Help about what version

What Version

  • Latest available (Revised)
  • Original (As enacted)
 Help about advanced features

Advanced Features

 Help about opening options

Opening OptionsExpand opening options

Changes over time for: Cross Heading: Excluded activities: provision of facilities for another business

 Help about opening options

Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Cross Heading: Excluded activities: provision of facilities for another business is up to date with all changes known to be in force on or before 27 February 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Excluded activities: provision of facilities for another businessU.K.

23(1)This paragraph applies where a company (“the service provider”) provides services or facilities for a business carried on by another person.U.K.

(2)Providing those services or facilities is an excluded activity if—

(a)the business consists to a substantial extent in carrying on excluded activities within any of sub-paragraphs (a) to (k) of paragraph 16, and

(b)a controlling interest in the business is held by a person (other than a company of which the service provider is a subsidiary) who also has a controlling interest in the business carried on by the service provider.

(3)Sub-paragraphs (4) to (6) explain what is meant by a controlling interest in a business for the purposes of sub-paragraph (2)(b).

(4)In the case of a business carried on by a company, a person (“P”) has a controlling interest in the business if—

(a)P controls the company,

(b)the company is a close company and P, or an associate of P's, is a director of the company and either—

(i)is the beneficial owner of more than 30% of the ordinary share capital of the company, or

(ii)is able (directly or through the medium of other companies or by any other indirect means) to control more than 30% of that share capital, or

(c)not less than half of the business could, in accordance with [F1section 942 of CTA 2010 (options for purposes of ownership condition)], be regarded as belonging to him for the purposes of [F2section 941 of that Act (trade transfers without change of ownership: ownership condition)].

(5)In any other case, a person has a controlling interest in a business if that person is entitled to not less than half—

(a)of the assets used for the business, or

(b)of the income arising from it.

(6)For the purposes of sub-paragraph (4)(a) the question whether a person controls a company is to be determined in accordance with [F3sections 450 and 451 of CTA 2010] (“control” in the context of close companies).

(7)For the purposes of this paragraph any rights or powers of a person who is an associate of another person are to be attributed to that other person.

(8)In this paragraph—

  • associate” has the meaning given [F4by section 448 of CTA 2010] (expressions relating to close companies), except that in [F5that section as it applies] for the purposes of this paragraph “relative” does not include a brother or sister;

  • business” includes any trade, profession or vocation;

  • director” is to be construed in accordance with [F6section 452 of CTA 2010] (expressions relating to close companies).

Textual Amendments

F1Words in Sch. 5 para. 23(4)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(a)(i) (with Sch. 2)

F2Words in Sch. 5 para. 23(4)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(a)(ii) (with Sch. 2)

F3Words in Sch. 5 para. 23(6) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(b) (with Sch. 2)

F4Words in Sch. 5 para. 23(8) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(c)(i) (with Sch. 2)

F5Words in Sch. 5 para. 23(8) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(c)(ii) (with Sch. 2)

F6Words in Sch. 5 para. 23(8) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 399(4)(d) (with Sch. 2)

Back to top

Options/Help