Part 2

Trading income
Chapter 11

Trade profits: other specific trades

Worker's services provided to public sector through intermediary

Intermediaries providing worker's services to public sector
164B
1
This section applies for the purposes of calculating the trading profits of a person where—
a
the person is the intermediary in a chain identified under section 61N of
ITEPA
2003 (see section 61N(1)(b)),
b
a deemed direct payment is treated as made under subsection (3) of that section, and
c
the person receives a payment which can reasonably be taken to be in respect of the same services as those in respect of which the underlying chain payment is made.
2
The payment mentioned in subsection (1)(c) is not required to be brought into account in calculating the profits of the trade.
3
In this section “
underlying chain payment
” means the payment whose amount is used at Step 1 of section 61Q(1) of
ITEPA
2003 as the starting point for calculating the amount of the deemed direct payment mentioned in subsection (1)(b).
S. 164B and cross-heading inserted (27.4.2017) (with effect in accordance with Sch. 1 paras. 16, 17 of the amending Act) by Finance Act 2017 (c. 10), Sch. 1 para. 13