Part 7Employment income: share-related income and exemptions
Chapter 2Conditional interests in shares
Tax exemption
426No charge in respect of acquisition of employee’s interest in certain circumstances
1
Subsection (2) applies if the terms on which the employee acquires the employee’s interest are such that the interest will cease to be only conditional within 5 years after its acquisition.
2
No liability to income tax arises in respect of the acquisition of the employee’s interest, except as provided by—
a
Chapter 8 of Part 3 (taxable benefits: notional loans in respect of acquisitions of shares), or
b
section 476 (charge on exercise of share option by employee).