Finance (No. 2) Act 2017

Amendments of CTA 2010

4 (1) Section 357KE (Northern Ireland workforce conditions) is amended as follows.

(2) In subsection (2)—

(a) omit the “and” at the end of paragraph (b), and

(b) at the end of paragraph (c) insert “, and

(d) in the case of a close company, or of a company which would be a close company if it were UK resident, individuals who are participators in the company.”

(3) After subsection (7) insert—

“(7A) In this section “participator” has the same meaning as in sections 1064 to 1067 (see sections 1068 and 1069).

(7B) In determining for the purposes of this section the amount of working time that is spent in any place by a participator in the company, time spent by the participator in that place is to be included where—

(a) the time is spent by the participator in providing services to a person other than the company (“the third party”), and

(b) condition A or B is met.

(7C) Condition A is that the provision of the services results in a payment being made (whether directly or indirectly) to the company by—

(a) the third party, or

(b) a person connected with the third party.

(7D) Condition B is that—

(a) the company holds a right that it acquired (whether directly or indirectly) from the participator, and

(b) any payment in connection with that right is made (whether directly or indirectly) to the company by—

(i) the third party, or

(ii) a person connected with the third party.

(7E) Section 1122 (connected persons) applies for the purposes of this section.”