Finance Bill (HC Bill 116)

(3) Condition B is that—

(a) 50% or more of the working time that is spent in the United
Kingdom during the period by members of the company’s
workforce is working time spent by participators in the
5company otherwise than in Northern Ireland, or

(b) 50% 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 working time spent by participators in the
10company otherwise than in Northern Ireland.

(4) For the purposes of this section “tax avoidance arrangements” means
arrangements the sole or main purpose of which is to secure that any
profits or losses of the company for the period are Northern Ireland
profits or losses.

(5) 15In subsection (4) “arrangements” includes any agreement,
understanding, scheme, transaction or series of transactions
(whether or not legally enforceable).

(6) The following provisions apply for the purposes of this section as
they apply for the purposes of section 357KE (Northern Ireland
20workforce conditions)—

(a) subsections (2) to (5) and (7A) to (7E) of that section;

(b) regulations made under that section.

(7) In its application by virtue of subsection (6), subsection (5) of section
357KE has effect as if the reference in it to subsection (1)(b) of that
25section were to subsection (3)(b) of this section.””

6 In the heading of Chapter 6 of Part 8B, at the end insert “that are Northern
Ireland employers”.

7 In section 357M (Chapter 6: introductory), in subsection (1), for “SME
condition” substitute “SME (Northern Ireland employer) condition”.

8 30In the heading of Chapter 7 of Part 8B, after “losses etc:” insert “SMEs that
are not Northern Ireland employers and”.

9 In section 357N (Chapter 7: introductory), in subsection (1), after “by virtue
of” insert “the SME (election) condition or”.

10 (1) Section 357OB (Northern Ireland intangibles credits and debits: SMEs) is
35amended as follows.

(2) In the heading, at the end, insert “that are Northern Ireland employers”.

(3) In subsection (1)(a), for “SME condition” substitute “SME (Northern Ireland
employer) condition”.

11 (1) Section 357OC (Northern Ireland intangibles credits and debits: large
40companies) is amended as follows.

(2) In the heading, after “debits:” insert “SMEs that are not Northern Ireland
employers and”.

(3) In subsection (1), after “by virtue of” insert “the SME (election) condition or”.

12 (1) Section 357VB (relevant Northern Ireland IP profits: SMEs) is amended as
follows.

(2) In the heading, at the end, insert “that are Northern Ireland employers”.

(3) In subsection (1)(a), for “SME condition” substitute “SME (Northern Ireland
5employer) condition”.

13 (1) Section 357VC (relevant Northern Ireland IP profits: large companies) is
amended as follows.

(2) In the heading, after “profits:” insert “SMEs that are not Northern Ireland
employers and”.

(3) 10In subsection (1)(a), after “by virtue of” insert “the SME (election) condition
or”.

14 (1) Section 357WA (meaning of “Northern Ireland firm”) is amended as follows.

(2) In subsection (1)(b), for “SME partnership condition” substitute “SME
(Northern Ireland employer) partnership condition, the SME (election)
15partnership condition”.

(3) In subsection (2), for “SME partnership condition” substitute “SME
(Northern Ireland employer) partnership condition”.

(4) After subsection (2) insert—

“(2A) The “SME (election) partnership condition” is that—

(a) 20the firm is an SME in relation to the firm’s accounting period,

(b) the firm is not a Northern Ireland employer in relation to that
period,

(c) the firm has a NIRE in that period,

(d) the firm is not a disqualified firm in relation to the period,
25and

(e) an election by the firm for the purposes of this subsection has
effect in relation to that period.””

(5) After subsection (3) insert—

“(3A) An election for the purposes of subsection (2A)—

(a) 30must be made by notice to an officer of Revenue and
Customs,

(b) must specify the accounting period in relation to which it is
to have effect (“the specified accounting period”),

(c) must be made before the end of the period of 12 months
35beginning with the end of the specified accounting period,
and

(d) if made in accordance with paragraphs (a) to (c) has effect in
relation to the specified accounting period.””

(6) In subsection (4)—

(a) 40in the opening words, for “to subsections (2) and (3)” substitute “in
relation to a firm”;