Part 7Employment income: income and exemptions relating to securities

F1Chapter 4Post-acquisition benefits from securities

449Case outside this Chapter

(1)

This Chapter does not apply if—

(a)

the employment-related securities are shares (or an interest in shares) in a company of a class,

(b)

a similar benefit is received by the owners of all the company’s shares of the class, and

(c)

subsection (2) or (3) is satisfied.

(2)

This subsection is satisfied if, immediately before the receipt of the benefit, the company is employee-controlled by virtue of holdings of shares of the class.

(3)

This subsection is satisfied if, immediately before the receipt of the benefit, the majority of the company’s shares of the class are not held by or for the benefit of any of the following—

(a)

employees of the company,

(b)

persons who are related to an employee of the company,

(c)

associated companies of the company,

(d)

employees of any associated company of the company, or

(e)

persons who are related to an employee of any such associated company.

(4)

For the purposes of subsection (3) a person is related to an employee if—

(a)

the person acquired the shares pursuant to a right or opportunity available by reason of the employee’s employment, or

(b)

the person is connected with a person who so acquired the shares or with the employee and acquired the shares otherwise than by or under a disposal made by way of a bargain at arm’s length from the employee or another person who is related to the employee.