F1Part 7AEmployment income provided through third parties
CHAPTER 1Application etc
Exclusions
554FExclusions: commercial transactions
1
Chapter 2 does not apply by reason of a relevant step which is the payment of a sum of money by way of a loan if—
a
the loan is a loan on ordinary commercial terms within the meaning of section 176, ignoring conditions B and C in that section, and
b
there is no connection (direct or indirect) between the relevant step and a tax avoidance arrangement.
2
Chapter 2 does not apply by reason of a relevant step taken by a person (“P”), which is not the payment of a sum of money by way of a loan, if—
a
the step is taken for the sole purpose of a transaction which P has with A and which P entered into in the ordinary course of P's business,
b
a substantial proportion of P's business involves similar transactions with members of the public,
c
the terms on which P entered into the transaction with A are substantially the same as the terms on which P normally enters into similar transactions with members of the public, and
d
there is no connection (direct or indirect) between the relevant step and a tax avoidance arrangement.
3
For the purposes of subsection (2)(b) and (c) a transaction is “similar” if it is of the same or a similar type to the transaction which P has with A.
4
In subsection (2)(b) and (c) “members of the public” means members of the public at large with whom P deals at arm's length.
5
In this section references to A include references to any person linked with A.
Pt. 7A inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 1