Commentary on Sections Overview Overview Section 1134: Qualifying element of sub-contractor payment: connected persons
2925.This section identifies the qualifying element of a sub-contractor payment if the company and the sub-contractor are connected persons. It is based on paragraph 10 of Schedule 20 to FA 2000, paragraph 10B of Schedule 12 to FA 2002 and paragraph 8 of Schedule 13 to FA 2002.
2926.The definition of connected persons in section 839 of ICTA (applied by section 1316(1)) applies.
2927.Subsection (3) defines “relevant expenditure”. It provides for the exclusion for expenditure of a capital nature that is omitted in the rewrite of other provisions of the source legislation for this Part. See the commentary on section 1129(3) for an explanation of this.