Part 12Other relief for employee share acquisitions

Chapter 3Relief if employee or other person obtains option to acquire shares

Requirements to be met for relief to be available

1017Condition relating to employee's income tax position

(1)

The following condition must be met in relation to the income tax position of the employee.

The Condition

The acquisition of the shares is a chargeable event in relation to the employee for the purposes of section 476 of ITEPA 2003 (whether or not an amount counts as employment income of the employee because of that event).

(2)

Subsection (3) applies if the condition—

(a)

is not met, but

(b)

would be met if at all material times the employee had been a UK employee.

(3)

This Chapter applies as if the employee had been a UK employee as mentioned in subsection (2)(b).

(4)

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.

(5)

If the employee is dead when the shares are acquired, the condition is to be treated as met if it would have been met had the employee been alive.