SCHEDULES
SCHEDULE 2Employee securities: anti-avoidance
Restricted securities
4
1
Section 424 (employment-related securities which are not restricted securities or restricted interest in securities) is renumbered as subsection (1) of that section.
2
In that subsection—
a
at the end of paragraph (a) insert “
or
”
, and
b
omit paragraph (c) (employment-related securities which are, or are an interest in, redeemable securities) and the word “or” before it.
3
After that subsection insert—
2
Subsection (1) does not apply if the main purpose (or one of the main purposes) of the arrangements under which the right or opportunity to acquire the employment-related securities is made available is the avoidance of tax or national insurance contributions.
4
This paragraph has effect on and after 2nd December 2004 and applies in relation to employment-related securities acquired before that date, as well as those acquired on or after that date; and section 422 of ITEPA 2003 (application of Chapter 2 of Part 7) applies to employment-related securities in relation to which this paragraph has effect and which were acquired before that date with the omission of the words “at the time of the acquisition”.