Conditions of exemption for companies
4(1)For subsections (2A) and (2B) of section 565 (certificates for companies) there shall be substituted the following subsections—
“(2A)The company must either—
(a)satisfy the Board, by such evidence as may be prescribed in regulations made by them, that the annual receipts test is satisfied; or
(b)satisfy the Board that the only persons with shares in the company are companies which are limited by shares and themselves excepted from section 559 by virtue of a certificate which is in force under section 561.
(2B)The annual receipts test is satisfied in relation to a company if the carrying on of its business is likely to involve the receipt, annually in the period to which the certificate would relate—
(a)of an aggregate amount by way of relevant payments which is not less than the amount obtained by multiplying the amount specified in regulations as the minimum turnover for the purposes of section 562(2A) by the number of persons who are relevant persons in relation to the company; or
(b)of an aggregate amount by way of construction contract payments which is not less than the amount specified for the purposes of this paragraph in regulations made by the Board.
(2BB)In subsection (2B) above “relevant payments” has the meaning given by section 562(2B).”
(2)After subsection (2C) of that section there shall be inserted the following subsection—
“(2D)In subsection (2B) above “construction contract payments” means payments under contracts relating to, or to the work of individuals participating in the carrying out of, any operations which—
(a)are of a description specified in subsection (2) of section 567; but
(b)are not of a description specified in subsection (3) of that section,
other than so much of the payments as represents the direct cost to the company of materials used or to be used in carrying out the operations in question.”