Paragraph 17

United Kingdom

(1)

For the purposes of paragraph 15 above, any question whether the person by whom a trade, profession or vocation is carried on is connected with another person shall be determined in accordance with sub-paragraphs (2) to (5) below.

(2)

An individual carrying on a trade, profession or vocation is connected with another person if they are connected with each other within the meaning of F1section 993 of the Income Tax Act 2007 (but as if, in subsection (4) of that section, the words from “But this subsection” to the end were omitted).

(3)

Persons carrying on a trade or profession in partnership are connected with an individual if he controls the partnership.

(4)

Persons carrying on a trade or profession in partnership are connected with a company if the company controls the partnership or the same person controls both the company and the partnership.

(5)

Persons carrying on a trade or profession in partnership are connected with persons carrying on another trade or profession in partnership if the same person controls both partnerships.

(6)

In this paragraph—

(a)

“control” shall be construed—

(i)

in relation to a company, in accordance with F2sections 450 and 451 of the Corporation Tax Act 2010;

(ii)

in relation to a partnership, in accordance with F3section 995 of the Income Tax Act 2007; and

(b)

any reference to a person controlling a company or partnership is a reference to his doing so either alone or with one or more persons connected with him.

Annotations

Textual amendments

F1: Words in Sch. 22 para. 17(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 370(3)(a) (with Sch. 2)
F2: Words in Sch. 22 para. 17(6)(a) 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. 290 (with Sch. 2)
F3: Words in Sch. 22 para. 17(6)(a)(ii) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 370(3)(b) (with Sch. 2)

Notes on Schedule 22

Textual amendments

F1: Words in Sch. 22 heading substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 484(12) (with Sch. 2)