Part 4Employment income: exemptions

F1CHAPTER 10AExemptions: bonus payments by certain employers

312FSection 312B: the office-holder requirement

(1)

For the purposes of section 312B, a company meets the officer-holder requirement if the appropriate fraction does not exceed 2/5.

(2)

“The appropriate fraction” means—

ND NE

where—

ND is the number of persons who are one or both of the following—

  1. (a)

    a director or other office-holder of the company;

  2. (b)

    an employee of the company connected with a person within paragraph (a);

NE is the number of persons who are employees (or office-holders) of the company.