Taxation of Chargeable Gains Act 1992 section 169VX

Unremunerated director

Section 169VX defines what it means to be an "unremunerated director" for the purposes of investors' relief, setting out the types of payment a director can and cannot receive without losing that status.

• A director qualifies as "unremunerated" if they receive no disqualifying payments from the issuing company or a related person during the relevant period, and are not entitled to any such payments.
• Certain payments are permitted without disqualifying the director, including reimbursement of genuine business expenses, reasonable commercial interest on loans, normal-return dividends, market-value payments for goods, and reasonable commercial rent for property.
• Reasonable remuneration for qualifying services provided in the course of a trade or profession is also permitted, provided those services are not secretarial, managerial, or of a kind already provided by the recipient, and the remuneration is included in the trade or profession's taxable profits.
• The definition of "payment" is drawn broadly to include indirect payments, payments made to a third party on the director's behalf, and payments made for the director's benefit.