Section 169VX — Taxation of Chargeable Gains Act 1992: “Unremunerated director”

“Unremunerated director” 169VX 1 For the purposes of section 169VW a person (“ the person concerned ”) is an “unremunerated director” of the issuing company or a connected company at a particular time in the relevant period if that person is a director of that company at that time and—

a does not receive in the relevant period any disqualifying payment from the issuing company or a related person, and b is not entitled to receive any such payment in respect of that period or any part of it.

2 In this section “ disqualifying payment ” means any payment other than—

a a payment or reimbursement of travelling or other expenses wholly, exclusively and necessarily incurred by the person concerned in the performance of his or her duties as a director, b any interest which represents no more than a reasonable commercial return on money lent to the issuing company or a related person, c any dividend or other distribution which does not exceed a normal return on the investment to which the dividend or distribution relates, d any payment for the supply of goods which does not exceed their market value, e any payment of rent for any property occupied by the issuing company or a related person which does not exceed a reasonable and commercial rent for the property, or f any necessary and reasonable remuneration which is—

i paid for qualifying services that are provided to the issuing company or a related person in the course of a trade or profession carried on wholly or partly in the United Kingdom, and ii taken into account in calculating for tax purposes the profits of that trade or profession.

3 In this section a “ related person ” means—

a a connected company of which the person concerned is a director, or b any person connected with the issuing company or with a company within paragraph (a).

4 In this section any reference to a payment to the person concerned includes a payment made to that person indirectly or to that person's order or for that person's benefit.

5 In this section “ qualifying services ” means services which are—

a not secretarial or managerial services, and b not services of a kind provided by the person to whom they are provided.

6 In this section the following expressions have the same meaning as in section 169VW— “connected company”; “director”; “issuing company”; “relevant period”.