SCHEDULES

SCHEDULE 9Employment-related securities etc

PART 3Corporation tax relief for employee share acquisitions

44

1

Section 1016 (conditions relating to shares acquired) is amended as follows.

2

In subsection (1), omit the “or” at the end of paragraph (b) of Condition 2 and after paragraph (c) of that Condition insert

, or

d

shares within subsection (1A)

3

After subsection (1) insert—

1A

Shares are within this subsection if—

a

after the option is obtained, the company in which the shares are to be acquired (“the relevant company”) comes to be controlled by another company (“the takeover”),

b

immediately before the takeover, the shares were within any of paragraphs (a) to (c) of Condition 2,

c

as a result of the takeover, the shares cease to be within any of those paragraphs,

d

the shares are acquired pursuant to the option within the period of 90 days beginning with the day of the takeover, and

e

the avoidance of tax is not the main purpose (or one of the main purposes) of the takeover.