Taxes Consolidation Act 1997 Schedule 11 paragraph 8B

Shares in service companies do no qualify

Paragraph 8B provides that shares in service companies, or in companies controlling service companies, do not qualify for approved profit-sharing scheme relief.

• From 4 February 2010, shares in a service company or in a company that controls a service company cannot be used for profit-sharing scheme purposes.
• A service company is one whose business consists wholly or mainly of providing the services of its employees to persons who control it, to associated companies, or to associated partnerships.
• Companies are associated if they are under common control, act in pursuit of a common purpose, or are controlled by persons having a reasonable commonality of identity.
• A partnership is associated with a company if they act in pursuit of a common purpose, and where a partner (alone or with others) controls a company, the partnership is treated as controlling it.