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Amendment of section 485 of Act of 1997
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4. (1) Section 485 of the Act of 1997 is amended—
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(a) in subsection (1)—
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(i) by the substitution of the following definition for the definition of “relevant business activity”:
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“‘relevant business activity’, subject to subsection (1A), has the meaning assigned to it in subsection (4);”,
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and
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(ii) by the insertion of the following definitions:
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“ ‘approved body of persons’ has the same meaning as in section 235;
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‘charity’ has the same meaning as in section 208;”,
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(b) by the insertion of the following subsection after subsection (1):
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“(1A) (a) Where a charity carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 208(2)(b), that trade shall be regarded as a relevant business activity for the purposes of this section.
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(b) Where an approved body of persons carries on a trade, the profits or gains arising from which would be chargeable to tax under Case I of Schedule D but for section 235(2), that trade shall be regarded as a relevant business activity for the purposes of this section.”,
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(c) in subsection (3)(c), by the substitution of “40” for “25”,
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(d) in subsection (4)—
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(i) in paragraph (a)—
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(I) by the substitution of the following definition for the definition of “average weekly turnover from the new relevant business activity”:
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“‘average weekly turnover from the new relevant business activity’ means—
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(i) in relation to a category A new relevant business activity, the average weekly turnover of the person, carrying on the activity, in respect of the new relevant business activity in the period commencing on the date on which the person commenced the business activity and ending on 12 October 2020, or
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(ii) in relation to a category B new relevant business activity, the average weekly turnover of the person, carrying on the activity, in respect of the new relevant business activity in the period commencing on the date on which the person commenced the business activity and ending on 1 August 2021.”,
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(II) by the substitution of the following definition for the definition of “new relevant business activity”:
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“‘new relevant business activity’ means a category A new relevant business activity or a category B new relevant business activity, as the case may be;”,
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and
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(III) by the insertion of the following definitions:
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“‘category A new relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person on or after 26 December 2019 and before 13 October 2020;
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‘category B new relevant business activity’ means, in relation to a person, a relevant business activity commenced by that person on or after 13 October 2020 and before 27 July 2021;”,
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and
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(ii) in paragraph (b)(i), by the substitution of “40” for “25”,
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(e) in subsection (8)(b)—
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(i) in subparagraph (i):
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(I) by the substitution of “(referred to in this paragraph and in subsection (8A) as the ‘restart week’)” for “(referred to in this paragraph as the ‘restart week’)”, and
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(II) by the substitution of “may, subject to subsection (8A), elect” for “may elect”,
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and
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(ii) in subparagraph (ii), by the substitution of “Subject to subsection (8A), the period” for “The period”,
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(f) by the insertion of the following subsection after subsection (8):
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“(8A) The period that a qualifying person may elect to treat as a Covid restrictions extension period for the purposes of paragraph (b)(i) of subsection (8) shall be a period of one week from the date on which the restart week commences in a case where—
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(a) the restart week commences on or after 20 December 2021, and
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(b) the election is made in respect of—
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(i) a trade carried on by the qualifying person which is regarded as a relevant business activity as provided for in subsection (1A), or
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(ii) a relevant business activity and the turnover of the qualifying person in respect of the relevant business activity for any claim period commencing on or after 20 December 2021 and ending before the day the restart week commences is greater than 25 per cent (but not greater than 40 per cent) of the relevant turnover amount.”,
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(g) in subsection (14)(a)(ii), by the substitution of the following clause for clause (VI):
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“(VI) where a business activity is—
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(A) a category A new relevant business activity, the date of commencement of the activity and the amount of turnover in respect of the new business activity beginning on the date of commencement and ending on 12 October 2020, or
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(B) a category B new relevant business activity, the date of commencement of the activity and the amount of turnover in respect of the new business activity beginning on the date of commencement and ending on 1 August 2021,”,
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and
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(h) in subsection (22)(b), by the substitution of “40” for “25”.
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(2) Subsection (1) shall be deemed to have come into operation on 20 December 2021.
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