The turnover testU.K.
11(1)The company must either—U.K.
(a)satisfy the Inland Revenue, by such evidence as may be prescribed in regulations made by the Board of Inland Revenue, that the carrying on of its business is likely to involve the receipt in the year following the making of the application of an aggregate amount by way of relevant payments which is not less than the amount which is the minimum turnover for the purposes of this sub-paragraph; or
(b)satisfy the Inland Revenue that the only persons with shares in the company are companies which are limited by shares and themselves are registered for gross payment;
and in this sub-paragraph “relevant payments” has the meaning given by paragraph 3(2).
(2)The minimum turnover for the purposes of sub-paragraph (1) is whichever is the smaller of—
(a)the amount obtained by multiplying the amount specified in regulations as the minimum turnover for the purposes of paragraph 3 (1) by the number of persons who are relevant persons in relation to the company; and
(b)the amount specified for the purposes of this paragraph in regulations made by the Board of Inland Revenue.
(3)For the purposes of sub-paragraph (2) a person is a relevant person in relation to the company—
(a)where the company is a close company, if he is a director of the company (within the meaning given by section 67 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1)) or a beneficial owner of shares in the company; and
(b)in any other case, if he is such a director of the company.
(4)The Board may make regulations—
(a)for determining the number of relevant persons to be taken into account for the purposes of sub-paragraph (2) (for example, where the number of such persons has fluctuated over a period);
(b)for the purpose of enabling a company which does not satisfy the condition in sub-paragraph (1) to be treated as satisfying that condition in such circumstances as may be prescribed.