ERSM20290 - Employment-related securities and options: exclusions: certain control situations

In the following Chapters, there are exemptions from the charge where certain control tests are satisfied. The chapters and their respective relieving provisions are, as from 2 December 2004:

* Chapter 2 (restricted securities) ITEPA03/S429
   
* Chapter 3 (convertible securities) ITEPA03/S443
* Chapter 3C (securities acquired for less than market value) ITEPA03/S446R
* Chapter 4 (post-acquisition benefits from securities) ITEPA03/S449

The relief is subject to the following tests:

  1. the employment-related securities are shares (or an interest in shares) in a company of a class;
  2. all the company바카라 사이트™s shares of that class:
* are restricted in the same way (Chapter 2), or
* are all convertible securities (Chapter 3), or
* were all acquired for less than market value (Chapter 3C), or 
* all give rise to a similar benefit (Chapter 4);
  1. nothing has been done affecting the shares as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax or national insurance contributions;
  2. all the company바카라 사이트™s shares of the class (other than the employment-related securities) are affected by an event similar to that which is a chargeable event in relation to the employment-related securities, (Chapters 2 and 3 only); and,
  3. at the relevant time, either:

 

 

  1. the company is employee-controlled by virtue of holdings of shares of the class,
or
  1. the majority of the company바카라 사이트™s shares of the class are not employment-related securities.

Employee-controlled

A company is 바카라 사이트śemployee-controlled바카라 사이트ť, per ITEPA03/S421H, by virtue of shares of a class if:

  • the majority of the company바카라 사이트™s shares of that class (other than any held by or for the benefit of an associated company) are held by or for the benefit of employees of the company or a company controlled by the company, and
  • those employees are together able as holders of the shares to control the company.

바카라 사이트śEmployee바카라 사이트ť includes a person who is to be or has been an employee.

바카라 사이트śAssociated company바카라 사이트ť has the same meaning as in CTA2010/S449.

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Earlier versions of exclusion

Up to 6 May 2004

There was no avoidance test (c) and the employment-related securities test (e.2) was:

the majority of the company바카라 사이트™s shares of the class are not held by or for the benefit of any of the following바카라 사이트”

* employees of the company,
* persons who are related to an employee of the company,
* associated companies of the company,
* employees of any associated company of the company, or
* persons who are related to an employee of any such associated company.

For this test a person is related to an employee if:

* the person acquired the shares pursuant to a right or opportunity available by reason of the employee바카라 사이트™s employment, or
* the person is connected with a person who so acquired the shares, or with the employee, and acquired the shares otherwise than by a disposal made by way of a bargain at arm바카라 사이트™s length from the employee or another person who is related to the employee.

From 7 May 2004 to 1 December 2004

The avoidance test (c) was based on the motive at time of acquisition of shares rather than at any time.