[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 unless something which affects the employment-related securities has been done (at or before the time when section 426 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 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]