Paragraph 67

United Kingdom

(1)

Eligible shares must not be shares—

(a)

in an employer company, or

(b)

in a company that—

(i)

has control of an employer company, and

(ii)

is under the control of a person or persons within sub-paragraph (2)(b)(i) in relation to an employer company.

(2)

For the purposes of this paragraph a company is “an employer company” if—

(a)

the business carried on by it consists substantially in the provision of the services of persons employed by it, and

(b)

the majority of those services are provided to—

(i)

a person who has, or two or more persons who together have, control of the company, or

(ii)

a company associated with the company.

(3)

For the purposes of sub-paragraph (2)(b)(ii) a company shall be treated as associated with another company if both companies are under the control of the same person or persons.

(4)

For the purposes of sub-paragraphs (1) to (3)—

(a)

references to a person include a partnership, and

(b)

where a partner, alone or together with others, has control of a company, the partnership shall be treated as having like control of that company.

(5)

For the purposes of this paragraph the question whether a person controls a company shall be determined in accordance with section 416(2) to (6) of the Taxes Act 1988.

Notes on Schedule 8

Textual amendments

F1: Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)