Section 169VX | “Unremunerated director” ^F1

(1)For the purposes of section 169VW a person (“the person concerned”) is an “unremunerated director” of the issuing company or a connected company at a particular time in the relevant period if that person is a director of that company at that time and—^F1

(a)does not receive in the relevant period any disqualifying payment from the issuing company or a related person, and^F1

(b)is not entitled to receive any such payment in respect of that period or any part of it.^F1

(2)In this section “disqualifying payment” means any payment other than—^F1

(a)a payment or reimbursement of travelling or other expenses wholly, exclusively and necessarily incurred by the person concerned in the performance of his or her duties as a director,^F1

(b)any interest which represents no more than a reasonable commercial return on money lent to the issuing company or a related person,^F1

(c)any dividend or other distribution which does not exceed a normal return on the investment to which the dividend or distribution relates,^F1

(d)any payment for the supply of goods which does not exceed their market value,^F1

(e)any payment of rent for any property occupied by the issuing company or a related person which does not exceed a reasonable and commercial rent for the property, or^F1

(f)any necessary and reasonable remuneration which is—^F1

(i)paid for qualifying services that are provided to the issuing company or a related person in the course of a trade or profession carried on wholly or partly in the United Kingdom, and^F1

(ii)taken into account in calculating for tax purposes the profits of that trade or profession.^F1

(3)In this section a “related person” means—^F1

(a)a connected company of which the person concerned is a director, or^F1

(b)any person connected with the issuing company or with a company within paragraph (a).^F1

(4)In this section any reference to a payment to the person concerned includes a payment made to that person indirectly or to that person's order or for that person's benefit.^F1

(5)In this section “qualifying services” means services which are—^F1

(a)not secretarial or managerial services, and^F1

(b)not services of a kind provided by the person to whom they are provided.^F1

(6)In this section the following expressions have the same meaning as in section 169VW—^F1

“connected company”;

“director”;

“issuing company”;

“relevant period”.