Part 4Employment income: exemptions

F1CHAPTER 10AExemptions: bonus payments by certain employers

Annotations:
Amendments (Textual)
F1

Pt. 4 Ch. 10A inserted (with effect in accordance with Sch. 37 para. 8 of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 5

312ESection 312B: the indirect employee-ownership requirement

1

For the purposes of section 312B, a company meets the indirect employee-ownership requirement if—

a

a settlement meets the controlling interest requirement in respect of—

i

the company, or

ii

if the company is a member of a trading group, but not the principal company, that principal company, and

b

the settlement meets the all-employee benefit requirement.

2

For this purpose—

a

section 236M of TCGA 1992 applies to determine if a settlement meets the controlling interest requirement in respect of the company mentioned in subsection (1)(a)(i) or (ii) (as the case may be), and

b

sections 236J and 236K of that Act apply to determine if the settlement meets the all-employee benefit requirement (but see subsection (3)).

3

If a settlement would not otherwise meet the all-employee benefit requirement at any time during the qualifying period, section 236L of TCGA 1992 applies for the purposes of subsection (1)(b), unless the all-employee benefit requirement has (ignoring that section) previously been met at any time in the period—

a

beginning with 10 December 2013, and

b

ending immediately before that time.

4

For the purposes of subsections (2) and (3)—

a

in sections 236I to 236M of TCGA 1992 references to C are to be read as references to the company in respect of which the settlement is required to meet the controlling interest requirement (see subsection (1)(a)), and

b

section 236L of that Act applies as if the reference in subsection (1)(c) of that section to the period of 12 months ending with the time in question were a reference to the period of 12 months ending with the date the payment is made (even if the qualifying period is a period of less than 12 months by virtue of section 312B(3)).