Chapter 1: Introduction
Section 1001: Overview of Part
2585.This section gives an overview of the Part. It is new.
Section 1002: “Employment”
2586.This section gives the meaning of “employment” for the purposes of the Part. It is based on paragraph 26 of Schedule 23 to FA 2003.
Section 1003: “Shares” etc
2587.This section gives the meaning of “shares” for the purposes of the Part. It is based on paragraphs 10, 17, 22, 22D and 30 of Schedule 23 to FA 2003.
2588.The test in subsection (2), which determines when the shares are acquired, is identical to that in section 477(4) of ITEPA. This correlation is important as that section determines the income tax position of the employee for the purposes of section 1017.
Section 1004: Groups, consortiums and commercial associations of companies
2589.This section gives various definitions that apply when considering employee share acquisitions within a group of companies. It is based on paragraphs 23, 28 and 29 of Schedule 23 to FA 2003.
2590.Any group company that owns shares in the consortium company is treated as a member of the consortium. But a member of a group of companies is not part of the consortium simply because another member of the group holds shares in the consortium company.
Section 1005: Other definitions
2591.This section gives various definitions used for the purposes of the Part. It is based on paragraph 30 of Schedule 23 to FA 2003.
2592.“Convertible securities” has the same meaning as that in section 436 of ITEPA.
2593.“Restricted shares” means shares that are restricted securities or a restricted interest in securities for the purposes of Chapter 2 of Part 7 of ITEPA. These terms are defined in section 423 of ITEPA.