Part 12Other relief for employee share acquisitions
Chapter 2Relief if shares acquired by employee or other person
Requirements to be met for relief to be available
1009Conditions relating to employee's income tax position
1
If the shares acquired are not restricted shares, the following conditions must be met in relation to the income tax position of the employee.
Condition 1
The employee is subject to a charge under ITEPA 2003 in relation to the acquisition of the shares.
Condition 2
Section 446UA of ITEPA 2003 does not apply in relation to the shares.
2
If the shares acquired are restricted shares, the following condition must be met in relation to the income tax position of the employee.
The Condition
The employee—
a
has, as a result of the acquisition of the shares, earnings within Chapter 1 of Part 3 of ITEPA 2003 from the relevant employment that are subject to the charge under Part 2 of that Act, or
b
is not within paragraph (a) but will be subject to a charge under ITEPA 2003 as a result of section 426 of that Act if an event occurs in relation to the shares that is a chargeable event for the purposes of that section.
3
Subsection (4) applies if—
a
the conditions are, or the condition is, not met, but
b
the conditions or the condition would be met if at all material times the employee had been a UK employee.
4
This Chapter applies as if the employee had been a UK employee as mentioned in subsection (3)(b).
5
The employee is a UK employee if—
a
the employee is UK resident and ordinarily UK resident, and
b
the duties of the relevant employment are performed in the United Kingdom.