Part 7Employment income: income and exemptions relating to securities

F1Chapter 2Restricted securities

Introduction

424Exceptions

F2(1)

Employment-related securities are not restricted securities or a restricted interest in securities by reason only that any one or more of the following is the case—

(a)

the employment-related securities (or the securities in which they are an interest) are unpaid or partly paid shares which may be forfeited for non-payment of calls and there is no restriction on the meeting of calls by the person by whom they are held, F3or

(b)

that person may be required to offer for sale or transfer the employment-related securities on the employee ceasing, as a result of misconduct, to be employed by the employer or a person connected with the employer, or

F4(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(2)

Subsection (1) does not apply if the main purpose (or one of the main purposes) of the arrangements under which the right or opportunity to acquire the employment-related securities is made available is the avoidance of tax or national insurance contributions.