Section 77C(1) does not give power to serve a secondary-liability notice on the holder of a licence if the profits arose, or the chargeable gains accrued, to the assessed person in consequence of a contract made by the holder before 23 March 1973.
The exception under subsection (1) does not apply if—
the assessed person is connected with the holder, or
the contract was substantially varied on or after 23 March 1973.
For the purposes of subsection (2), whether a person is connected with another is determined in accordance with section 1122 of CTA 2010.