Finance Act 2012

Qualifying expenditure on externally provided workers U.K.

33 U.K. Chapter 9 (supplementary) is amended as follows.

34 (1) Section 1128 (“externally provided worker”) is amended as follows. U.K.

(2) In subsection (7), for “the staff provider” substitute “ a person other than the company (the “staff controller”) ”.

(3) After subsection (8) insert—

“(9) In sections 1129 to 1131 references to “staff controller” are to be read in accordance with subsection (7).”

35 (1) Section 1129 (connected persons) is amended as follows. U.K.

(2) In subsection (1), for paragraphs (b) and (c) substitute—

“(b) the company, the staff provider and (if different) the staff controller (or staff controllers) are all connected, and

(c) in accordance with generally accepted accounting practice—

(i) the whole of the staff provision payment has been brought into account in determining the staff provider's profit or loss for a relevant period, and

(ii) all of the relevant expenditure of each staff controller has been brought into account in determining the staff controller's profit or loss for a relevant period.”

(3) In subsection (2)(b), for “the staff provider's relevant expenditure” substitute “ the aggregate of the relevant expenditure of each staff controller ”.

(4) In subsection (3)—

(a) for “of the staff provider” substitute “ , in relation to a staff controller, ”, and

(b) in paragraph (a), for “staff provider” substitute “ staff controller ”.

(5) In subsection (4)—

(a) after “ “Relevant period”” insert “ , in relation to a person, ”, and

(b) in paragraph (a), for “staff provider” substitute “ person ”.

(6) In subsection (5)—

(a) for “the staff provider's expenditure” substitute “ the expenditure of a staff controller ”, and

(b) for “the staff provider” substitute “ a staff controller ”.

(7) In subsection (7), for “staff provider” substitute “ a staff controller ”.

36 (1) Section 1130 (election for connected persons treatment) is amended as follows. U.K.

(2) For subsection (1) substitute—

“(1) If—

(a) a company makes a staff provision payment, and

(b) the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected,

they may jointly elect that section 1129 is to apply to them as if they were all connected.”

(3) In subsection (2), for “must be made” substitute “ has effect ”.

37 U.K. In section 1131 (qualifying expenditure on externally provided workers: other cases), in subsection (1), for paragraph (b) (but not the “and” following it) substitute—

“(b) the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected,”.