Corporation Tax Act 2010

[F1 Meaning of “Northern Ireland employer” U.K.

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1

357KD “Northern Ireland employer” U.K.

A company is a “Northern Ireland employer” in relation to an accounting period if the Northern Ireland workforce conditions are met—

(a) in relation to that accounting period, or

(b) in relation to the period of 12 months preceding that accounting period.

357KE Northern Ireland workforce conditions U.K.

(1) The Northern Ireland workforce conditions, in relation to a period, are—

(a) that 75% or more of the working time that is spent in the United Kingdom during the period by members of the company's workforce is spent in Northern Ireland, and

(b) that 75% or more of the company's workforce expenses that are attributable to working time spent in the United Kingdom during the period by members of the company's workforce are attributable to time spent in Northern Ireland.

(2) References in this section to members of the company's workforce are to—

(a) directors of the company,

(b) employees of the company, F2 ...

(c) externally provided workers in relation to the company[F3 , 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) In subsection (2) “externally provided worker”, in relation to a company, has the same meaning as in Part 13 of CTA 2009 (see section 1128 of that Act).

(4) References in this section to the working time spent by members of the company's workforce in a place are to the total time spent by those persons in that place while providing services to the company.

(5) The reference in subsection (1)(b) to “the company's workforce expenses” is, where the period is an accounting period of the company, to the total of the deductions made by the company in the period in respect of members of the workforce in calculating the profits of any trade carried on by the company.

(6) The reference in subsection (1)(b) to “the company's workforce expenses” is, where the period is not an accounting period of the company, to the total of—

(a) the deductions made by the company in any accounting period falling wholly within the period, and

(b) the appropriate proportion of the deductions made by the company in any accounting period falling partly within the period,

in respect of members of the workforce in calculating the profits of any trade carried on by the company.

(7) For the purposes of subsection (6)(b), “the appropriate proportion” is to be determined by reference to the number of days in the periods concerned.

[F4 (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.]

(8) The Commissioners for Her Majesty's Revenue and Customs may by regulations specify descriptions of deduction that are, or are not, to be regarded for the purposes of this section as made in respect of members of a company's workforce.

(9) Regulations under this section—

(a) may make different provision for different purposes;

(b) may make incidental, supplemental, consequential and transitional provision and savings.]

Textual Amendments

F2 Word in s. 357KE(2)(b) omitted (16.11.2017) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 4(2)(a)

F3 S. 357KE(2)(d) and word inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 4(2)(b)

F4 S. 357KE(7A)-(7E) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 4(3)