Finance Act 1995

4 (1) Section 562 of that Act (conditions for grant of exemption certificate to be satisfied by individuals) shall be amended as follows.

(2) In subsection (1) (applications to which section applies)—

(a) the words “(otherwise than as a partner in a firm)” shall be omitted; and

(b) at the end there shall be inserted “except that, where the application is for the issue of that certificate to that individual as a partner in a firm, this section shall have effect with the omission of subsections (2) to (2B).”

(3) After subsection (2) there shall be inserted the following subsections—

“(2A) The applicant must satisfy the Board, by such evidence as may be prescribed in regulations made by the Board, that the carrying on of the business mentioned in subsection (2) above is likely to involve the receipt, annually in the period to which the certificate would relate, of an aggregate amount by way of relevant payments which is not less than the amount specified in regulations made by the Board as the minimum turnover for the purposes of this subsection.

(2B) In subsection (2A) above “relevant payments” means the following payments, other than so much of them as would fall, as representing the direct cost to any person of any materials, to be disregarded in calculating the amount of any deductions under subsection (4) of section 559, that is to say—

(a) payments from which such deductions would fall to be made if the certificate is not granted; and

(b) payments which would be such payments but for any regulations under subsection (3A) of that section.”

(4) Subsections (3) to (7) (which relate to the period for which an individual has carried on his business) shall cease to have effect.

(5) In subsection (9) (compliance by companies of which the applicant has had control), for “has the meaning given by section 840” there shall be substituted “shall be construed in accordance with section 416(2) to (6)”.

(6) In subsection (11) (persons who have been out of the United Kingdom), for the words from the beginning to the word “Board”, in the second place where it occurs, there shall be substituted—

“(11) Where the applicant states, for the purpose of showing that he has complied with all obligations imposed on him as mentioned in subsection (8) above, that he was not subject to any of one or more obligations in respect of any period ending within the qualifying period—

(a) he must satisfy the Board of that fact by such evidence as may be prescribed in regulations made by the Board; and

(b) if for that purpose he states that he has been outside the United Kingdom for the whole or any part of the qualifying period, he must also satisfy them, by such evidence as may be so prescribed,”.

(7) For subsection (14) (meaning of “qualifying period”) there shall be substituted the following subsections—

“(13A) Subject to subsection (10) above, a person shall not be taken for the purposes of this section to have complied with any such obligation or request as is referred to in subsections (8) to (11) above if there has been a contravention of a requirement as to the time at which, or the period within which, the obligation or request was to be complied with.

(14) In this section “the qualifying period”, in relation to an application for the issue of a certificate under section 561, means the period of three years ending with the date of the application.”