[429Case outside charge under section 426U.K.
This section has no associated Explanatory Notes
(1)Section 426 (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)the provision by virtue of which the employment-related securities are restricted securities, or a restricted interest in securities, applies to all the company’s shares of the class,
[(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 if the avoidance of tax or national insurance contributions was not the main purpose, or one of the main purposes, of the arrangements under which the right or opportunity to acquire the employment-related securities was made available.]
(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 427(3)(a) (lifting of restrictions), if the provision mentioned in subsection (1)(b) ceases to apply to them,
(b)in the case of a chargeable event within section 427(3)(b) (variation of restriction), if that provision is varied in relation to them in the same way as in relation to the employment-related securities, or
(c)in the case of a chargeable event within section 427(3)(c) (disposal), if they are disposed of.
(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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]