PG电子

Section 404(2) to (3) ITEPA 2003

This guidance explains which employers are 鈥渁ssociated鈥�. EIM13530 explains that payments and benefits from associated employers must be aggregated before applying the 拢30,000 threshold.

Employers are associated if, on a 鈥渢ermination or change date鈥� (as defined inthe last bullet below):

• Test A: one employer is under the control of the other 鈥� see example 1 at EIM13965, or
• Test B: one employer is under the control of a third person who controls, or is controlled by, the other employer 鈥� see example 2 at EIM13965, or
• Test C: on a different 鈥渢ermination or change date鈥� one employer is under the control of a third person who controls, or is controlled by, the other employer 鈥� see example 3 at EIM13965

For this purpose:

• 鈥渃ontrol鈥� means the ability to exercise control over the affairs of a company, etc whether by possessing the greater part of the issued share capital or voting power, or otherwise (see EIM20213)
• 鈥減erson鈥� (singular) is to be read as including 鈥減ersons鈥� (plural) 鈥� s6 Interpretation Act 1978 (so that, for example, Test B above is satisfied if the employers are under the control of the same persons)
• employer and person controlling or controlled by an employer include their successors
• 鈥渢ermination or change date鈥� means the date of the termination or change giving rise to the payment or benefit being considered. For example, if you are looking at a redundancy payment made on 1 March 2004 in respect of an employment that ended on 1 January 2004, the 鈥渢ermination or change date鈥� is 1 January 2004