Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 7 Employment income: share-related income and exemptions

Chapter 4 Post-acquisition benefits from shares

Interpretation

468 Meaning of “employee-controlled”

For the purposes of this Chapter a company is “employee—controlled” by virtue of shares of a class if—

(a) the majority of the company’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 or directors of the company or a company controlled by the company, and

(b) those directors and employees are together able as holders of the shares to control the company.