Part 7

Employment income: income and exemptions relating to securities
Chapter 1

Introduction
Application of Chapters 2 to
4A

Meaning of “employee-controlled” etc
421H
1
For the purposes of Chapters 2 to 4 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 of the company or a company controlled by the company, and
b
those employees are together able as holders of the shares to control the company.
In this subsection “
employee
” includes a person who is to be or has been an employee.
2
In this section and Chapters 2 to 4 “
associated company
” has the
meaning given by section 449 of CTA 2010
.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Word in s. 421B cross-heading substituted (with effect in accordance with s. 20(5) of the amending Act) by Finance Act 2005 (c. 7), s. 20(3)(b)
Pt. 7 Ch. 1 substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)
Words in s. 421H(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 386 (with Sch. 2)
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)