Part 7

Employment income: income and exemptions relating to securities
Chapter 4A

Shares in research institution spin-out companies

Introduction

Application of this Chapter
451
1
This Chapter applies where—
a
an agreement is made for one or more transfers of intellectual property (an “
intellectual property agreement
”) from one or more research institutions to a company (a “
spin-out company
”),
b
a person acquires shares (or an interest in shares) in the spin-out company before the intellectual property agreement is made or within the period of 183 days beginning with the date on which it is made,
c
the right or opportunity to acquire the shares (or interest in shares) was available by reason of employment by the research institution (or any of them) or by the spin-out company, and
d
the person is involved in research in relation to any of the intellectual property that is the subject of the intellectual property agreement.
2
But this Chapter does not apply if the avoidance of tax or national insurance is the main purpose (or one of the main purposes) of the arrangements under which the right or opportunity to acquire the shares (or interest in shares) is made available.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Pt. 7 Ch. 4A inserted (with effect in accordance with s. 20(5)-(7) of the amending Act) by Finance Act 2005 (c. 7), s. 20(1)
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)