[443Case outside charge under section 438U.K.
This
adran has no associated
Nodiadau Esboniadol
(1)Section 438 (charge on occurrence of chargeable event) does not apply if—
(a)the employment-related securities are shares (or an interest in shares) in a company of a class,
(b)all the company’s shares of the class are convertible securities,
[(ba)subsection (1A) is satisfied,]
(c)all the company’s shares of the class (other than the employment-related securities) are affected by an event similar to that which is a chargeable event in relation to the employment-related securities, and
(d)subsection (3) or (4) is satisfied.
[(1A)This subsection is satisfied unless something which affects the employment-related securities has been done (at or before the time when section 438 would apply) as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax or national insurance contributions.]
(2)For the purposes of subsection (1)(c) shares are affected by an event similar to that which is a chargeable event in relation to the employment-related securities—
(a)in the case of a chargeable event within section 439(3)(a) (conversion), if they are converted into securities of a different description,
(b)in the case of a chargeable event within section 439(3)(b) (disposal), if they are disposed of,
(c)in the case of a chargeable event within section 439(3)(c) (release of entitlement to convert), if the entitlement to convert them into securities of a different description is released, or
(d)in the case of a chargeable event within section 439(3)(d) (receipt of benefit), if a similar benefit is received in respect of the entitlement to convert them.
(3)This subsection is satisfied if, immediately before the event that would be a chargeable event, the company is employee-controlled by virtue of holdings of shares of the class.
(4)This subsection is satisfied if, immediately before that event, the majority of the company’s shares of the class are not [employment-related securities.]
(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]