National Insurance Contributions Act 2014

3 Connected persons

(1) This section applies if—

(a) at the beginning of a tax year, two or more companies which are not charities are connected with one another, and

(b) apart from this section, two or more of those companies would qualify for an employment allowance for the tax year.

(2) This section also applies if—

(a) at the beginning of a tax year, two or more charities are connected with one another, and

(b) apart from this section, two or more of those charities would qualify for an employment allowance for the tax year.

(3) Only one of the companies or charities mentioned in subsection (1)(b) or (2)(b) (as the case may be) can qualify for an employment allowance for the tax year.

(4) It is up to the companies or charities so mentioned to decide which of them that will be.

(5) Part 1 of Schedule 1 sets out the rules for determining if two or more companies are “connected” with one another for the purposes of subsection (1).

(6) Part 2 of Schedule 1 sets out the rules for determining if two or more charities are “connected” with one another for the purposes of subsection (2).

(7) In this section and Schedule 1—

• “charity” has the same meaning as in the Small Charitable Donations Act 2012 (see section 18(1) of that Act), subject to paragraph 8(5) of Schedule 1, and

• “company” has the meaning given by section 1121(1) of the Corporation Tax Act 2010 (meaning of “company”) and includes a limited liability partnership.