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Finance (No. 2) Act 2017

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Changes over time for: Cross Heading: Cases involving employment-related securities

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Point in time view as at 16/11/2017.

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There are currently no known outstanding effects for the Finance (No. 2) Act 2017, Cross Heading: Cases involving employment-related securities. Help about Changes to Legislation

Cases involving employment-related securitiesU.K.

31U.K.Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if—

(a)P is treated as taking a relevant step by that paragraph by reason of the payment of a sum of money by way of a loan (the “relevant loan”),

(b)the relevant loan is made and used solely for the purpose of enabling A to exercise an employment-related securities option (within the meaning of Chapter 5 of Part 7 of ITEPA 2003),

(c)the exercise of the option by A gives rise to employment income of A in respect of A's employment with B—

(i)which is chargeable to income tax or would be chargeable apart from Chapter 5B of Part 2 of ITEPA 2003, or

(ii)which is exempt income, and

(d)there is no connection (direct or indirect) between the relevant step and a tax avoidance arrangement.

32U.K.In section 554N of ITEPA 2003 (exclusions: other cases involving employment-related securities etc.), at the end insert—

(17)See paragraph 31 of Schedule 11 to F(No. 2)A 2017 for provision about exclusions where a loan is made for the purpose of enabling the exercise of an employment-related securities option and the relevant step is within paragraph 1 of that Schedule.

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