EIM20210 – The benefits code: meaning of "non-profit making" company

Section 216(3)(b) ITEPA 2003

Non-profit making company

For the purposes of deciding whether or not a director’s employment is an excluded employment ( EIM20007), a non-profit making company ( EIM20201) is one:

• which does not carry on a trade and
• whose functions do not consist wholly or mainly in the holding of investments or other property.

The mere fact that the company does not make a profit does not mean that it is non-profit making for the purposes of this test.