Section 312E — Income Tax (Earnings and Pensions) Act 2003: Section 312B: the indirect employee-ownership requirement

Section 312B: the indirect employee-ownership requirement 312E 1 For the purposes of section 312B, a company meets the indirect employee-ownership requirement if—

a a settlement meets the controlling interest requirement in respect of—

i the company, or ii if the company is a member of a trading group, but not the principal company, that principal company, and b the settlement meets the all-employee benefit requirement.

2 For this purpose—

a section 236M of TCGA 1992 applies to determine if a settlement meets the controlling interest requirement in respect of the company mentioned in subsection (1)(a)(i) or (ii) (as the case may be),

and b sections 236J and 236K of that Act apply to determine if the settlement meets the all-employee benefit requirement (but see subsection (3)).

3 If a settlement would not otherwise meet the all-employee benefit requirement at any time during the qualifying period, section 236L of TCGA 1992 applies for the purposes of subsection (1)(b), unless the all-employee benefit requirement has (ignoring that section) previously been met at any time in the period—

a beginning with 10 December 2013, and b ending immediately before that time.

4 For the purposes of subsections (2) and (3)—

a in sections 236I to 236M of TCGA 1992 references to C are to be read as references to the company in respect of which the settlement is required to meet the controlling interest requirement (see subsection (1)(a)),

and b section 236L of that Act applies as if the reference in subsection (1)(c) of that section to the period of 12 months ending with the time in question were a reference to the period of 12 months ending with the date the payment is made (even if the qualifying period is a period of less than 12 months by virtue of section 312B(3)).