Part 4Employment income: exemptions
F1CHAPTER 10AExemptions: bonus payments by certain employers
312G“Service company”
1
For the purposes of section 312B, “service company” means—
a
a managed service company within the meaning of section 61B, or
b
a company (“SC”) in respect of which Conditions A and B are met.
2
Condition A is that the business carried on by SC consists substantially of the provision of the services of persons employed by it.
3
Condition B is that the majority of those services are provided to persons—
a
to whom subsection (4) applies, but
b
who are not members of the same group as the company which makes the payment.
4
This subsection applies to—
a
a person who controls or has controlled, or two or more persons who together control or have controlled, SC or any company of which SC is a 51% subsidiary at the time the payment is made,
b
a person who, or two or more persons who together, at any time before the time the payment is made—
i
employed all or a majority of the employees of SC, or
ii
employed all or a majority of the employees of SC and other companies which are members of the same group as SC at the time the payment is made (taken together), and
c
any company which is a 51% subsidiary of, controlled by or connected or associated with, any person within paragraph (a) or (b).
5
For the purposes of subsection (4)—
a
a partnership is to be treated as a single person, and
b
where a partner (alone or together with others) has control of a company, the partnership is to be treated as having (in the same way) control of that company.
6
The following provisions apply for the purposes of this section—
a
section 449 of CTA 2010 (“associated company”);
b
section 995 of ITA 2007 (meaning of “control”);
c
section 286 of TCGA 1992 (connected persons: interpretation).
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