Regulation 3 Salaried Members of LLPs: Great Britain

(1)

This regulation applies where—

(a)

for the purposes of the Income Tax Acts an individual is treated by section 863A of ITTOIA 2005 (limited liability partnerships: salaried members) as being employed by an LLP under a contract of service, including where that is the case by virtue of section 863G of ITTOIA 2005 (anti-avoidance), (“the deemed tax employment”); and

(b)

if the services performed, or to be performed, by the individual as a member of the LLP in the relevant period (as defined in section 863B(3) of ITTOIA 2005) were actually performed (or to be performed) under a contract of service with the LLP, the employment under that contract of service would be employment in Great Britain.

(2)

For the purposes of SSCBA 1992—

(a)

the individual (“the Salaried Member”) is to be treated as employed in employed earner’s employment by the LLP (being the deemed tax employment);

(b)

any amount treated by virtue of section 863A or 863G(4) of ITTOIA 2005 as employment income from the deemed tax employment, other than employment income under Chapters 2 to 11 of Part 3 of ITEPA 2003 (the benefits code), is to be treated as an amount of earnings paid to or for the benefit of the Salaried Member in respect of the Salaried Member’s employed earner’s employment with the LLP;

(c)

the secondary contributor^f1 in relation to those earnings is the LLP; and

(d)

in the case of an amount of earnings which is an amount of employment income by virtue of section 863G(4) of ITTOIA 2005, the earnings are to be treated as being paid by the LLP to the Salaried Member when the amount mentioned in section 863G(2)(d) of that Act arises.

(3)

The reference in paragraph (1)(b) to services performed (or to be performed) by the individual as a member of the LLP includes services personally performed by the individual for the LLP under arrangements by virtue of which section 863G(4) of ITTOIA 2005 applies.

(4)

The definitions of “employer” and “employee” in—

(a)

section 163 (interpretation of Part 11 and supplementary provisions)^f2;

(b)

section 171 (interpretation of Part 12 and supplementary provisions)^f3;

(c)

section 171ZJ (Part 12ZA: supplementary)^f4; and

(d)

section 171ZS (Part 12ZB: supplementary)^f5

of the SSCBA 1992 have effect as if the Salaried Member were gainfully employed in Great Britain by the LLP under a contract of service with the earnings mentioned in paragraph (2)(b).

Annotations

Footnotes

f1: “secondary contributor” is defined in section 7 of SSCBA 1992.
f2: Section 163 was amended by paragraphs 169 and 181 of Schedule 6 to ITEPA 2003 and paragraph 9 of Schedule 8 to S.I. 2006/1031.
f3: Section 171 was amended by paragraphs 169 and 182 of Schedule 6 to ITEPA 2003, paragraphs 8 and 10(1) and (2) of Schedule 8 to S.I. 2006/1031, paragraphs 15(1) and (2) of Schedule 1 to SSC(ToF)A 1999 and paragraph 43 of Schedule 4 to the Commissioners for Revenue and Customs Act 2005 (c. 11) (CRCA 2005).
f4: Section 171ZJ was inserted by section 2 of EA 2002 and amended by paragraphs 169 and 183 of Schedule 6 to ITEPA 2003 and paragraph 9 of Schedule 8 to S.I. 2006/1031.
f5: Section 171ZS was inserted by section 2 of EA 2002 and amended by paragraphs 169 and 184 of Schedule 6 to ITEPA 2003 and paragraph 12 of Schedule 8 to S.I. 2006/1031.