(1) In this section, "service company" means, subject to subsection (2) -
(a) a close company whose business consists of or includes the carrying on of a profession or the provision of professional services,
(b) a close company having or exercising an office or employment, or
(c) a close company whose business consists of or includes the provision of services or facilities of whatever nature to or for -
(i) a company within either of the categories referred to in paragraphs (a) and (b),
(ii) an individual who carries on a profession,
(iii) a partnership which carries on a profession,
(iv) a person who has or exercises an office or employment, or
(v) a person or partnership connected with any person or partnership referred to in subparagraphs (i) to (iv);
but the provision by a close company of services or facilities to or for a person or partnership not connected with the company shall be disregarded for the purposes of this paragraph.
(2) Where the principal part of a company's income
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