Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 7 U.K. Employment income: share-related income and exemptions

Chapter 2 U.K. Conditional interests in shares

Introduction U.K.

422 Application of this Chapter U.K.

(1) This Chapter applies where—

(a) a person (“the employee”) acquires a beneficial interest in shares in a company as a director or employee of that or another company, and

(b) the interest is acquired on terms that make it only conditional.

(2) In this Chapter—

• “the employee’s interest” means the beneficial interest in shares acquired by the employee as mentioned in subsection (1);

• “the employer company” means the company as a director or employee of which the employee’s interest is acquired;

• “the shares” means the shares mentioned in subsection (1)(a);

• and “director” and “employee” have the extended meaning given by section 434(1).