Related Commentary  Related HMRC Manuals

1134(1)  This section applies if–

(a)a company makes a sub-contractor payment,

(b)the company and the sub-contractor are connected, and

(c)in accordance with generally accepted accounting practice, the whole of the sub-contractor payment and all of the sub-contractor's relevant expenditure have been brought into account in determining the subcontractor's profit or loss for a relevant period.

1134(2)  The qualifying element of the sub-contractor payment is–

(a)the entire payment, or

(b)if less, an amount equal to the sub-contractor's relevant expenditure.

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