Section GB 24 — Income Tax Act 2007: Exemption for genuine contracts

GB 24 Exemption for genuine contracts When section GB 23 does not apply (1) Section GB 23 does not apply if the relevant contract of employment, engagement, or partnership is a genuine contract. When contracts genuine (2) A contract is treated as a genuine contract if— (a) the contract is in writing; and (b) the contract is signed by all the parties to it; and (c) in the case of a contract of employment or engagement, each person employed or engaged under the contract is 20 years or older on the date of signing the contract; and (d) in the case of a contract of partnership, each partner is 20 years or older on the date of signing the contract; and (e) the contract is binding for at least 3 years, except for the reasons set out in sections 36 and 38 of the Partnership Act 1908; and (f) in the case of a contract of employment or engagement, each person employed or engaged has real control over their income under the contract; and (g) in the case of a contract of partnership, each partner has— (i) real control over their share of profits under the contract; and (ii) real liability for their share of losses under the contract; and (h) no part of the income or share of profits derived by the relative, or company of which the relative is a shareholder or director, is a gift for the purposes of the Estate and Gift Duties Act 1968. Defined in this Act: director , income , loss , shareholder , year , Compare: 2004 No 35 s GD 3(4), (5)