Income Tax Act 2007 section 199

Excluded activities: provision of services or facilities for another business

Section 199 treats the provision of services or facilities to another person's business as an excluded activity for Enterprise Investment Scheme purposes, where that business largely consists of excluded activities and common control exists between the two businesses.

• Providing services or facilities to another business is an excluded activity if that business consists wholly or substantially of activities listed in section 192(1)(a) to (ka) and a person holds a controlling interest in both businesses
• A controlling interest in a company exists where a person controls it, or where the company is close and the person (or associate) is a director owning or controlling more than 30% of ordinary share capital, or where at least half the business can be regarded as belonging to that person
• For unincorporated businesses, a controlling interest exists where a person is entitled to at least half the business assets or income
• The rights and powers of a person's associates are attributed to that person for these purposes, and "business" includes any trade, profession or vocation