Paragraph 29

United Kingdom

(1)

An employee is an eligible employee in relation to the relevant company only if his committed time amounts to—

(a)

at least 25 hours a week, or

(b)

if less, 75% of his working time.

(2)

An employee’s “committed time” means the time that he is required as an employee in relevant employment to spend—

(a)

on the business of the relevant company, or

(b)

if the relevant company is a parent company, on the business of the group.

(3)

It includes any time which the employee would have been required to spend as mentioned in sub-paragraph (2) but for—

(a)

injury, ill-health or disability,

(b)

pregnancy, childbirth, maternity or paternity leave or parental leave,

(c)

reasonable holiday entitlement, or

(d)

not being required to work during a period of notice of termination of employment.

(4)

For the purposes of this paragraph an employee is in “relevant employment” if he is employed—

(a)

by the relevant company, or

(b)

where the relevant company is a parent company, by any group company.

References to an employee beginning or ceasing to be in relevant employment are to his becoming or no longer being so employed.

(5)

In sub-paragraph (1)(b) “working time” means—

(a)

time spent on remunerative work as an employee or self-employed person, or

(b)

time which would have been so spent but for any of the reasons specified in sub-paragraph (3)(a) to (d).

(6)

In sub-paragraph (5)(a) “remunerative work” means—

(a)

work the income from which is chargeable to tax under Case I of Schedule E, and

(b)

work undertaken with a view to profit the profits (if any) from which are (or would be) chargeable to tax under Case I or II of Schedule D,

or, in either case, which would be so chargeable if the employee were resident and ordinarily resident in the United Kingdom.

Notes on Schedule 14

F1: Sch. 14 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)