Section 352 | Limited deduction for agency fees paid by entertainers

(1)A deduction is allowed from earnings from an employment as an entertainer for agency fees (and any value added tax on them) if the fees are calculated as a percentage of the whole or part of the earnings from the employment.This is subject to the limit in subsection (2).

(2)Amounts may be deducted under this section in calculating the net taxable earnings from an employment in a tax year only to the extent that, in aggregate, they do not exceed 17.5% of the taxable earnings from the employment in the tax year.

(3)Subsections (4) and (5) apply for the purposes of this section.

(4)“Entertainer” means an actor, dancer, musician, singer or theatrical artist.

(5)“Agency fees”, in relation to an employment, means—

(a)fees paid under a contract between the employee and another person, to whom the fees are paid, who—

(i)agrees under the contract to act as an agent of the employee in connection with the employment, and

(ii)at the time the fees are paid is carrying on an employment agency with a view to profit, and

(b)fees paid under an arrangement under which a co-operative society or the members of such a society agree to act as the employee’s agent in connection with the employment.

(6)For the purposes of subsection (5)—