Part 12

Other relief for employee share acquisitions
Chapter 2

Relief if shares acquired by employee or other person

Requirements to be met for relief to be available

Conditions relating to employee's income tax position
1009
1
If the shares acquired are not restricted shares, the following conditions must be met in relation to the income tax position of the employee.
Condition 1
The employee is subject to a charge under ITEPA 2003 in relation to the acquisition of the shares.
Condition 2
Section 446UA of ITEPA 2003 does not apply in relation to the shares.
2
If the shares acquired are restricted shares, the following condition must be met in relation to the income tax position of the employee.
The Condition
The employee—
a
has, as a result of the acquisition of the shares, relevant earnings from the relevant employment that are subject to the charge under Part 2 of that Act, or
b
is not within paragraph (a) but will be subject to a charge under ITEPA 2003 as a result of section 426 of that Act if an event occurs in relation to the shares that is a chargeable event for the purposes of that section.
2A
Relevant earnings” means—
a
earnings within Chapter 1 of Part 3 of
ITEPA
2003, and
b
any amount that is treated as earnings by virtue of section 226A of that Act (employee shareholder shares).
3
Subsection (4) applies if—
a
the conditions are, or the condition is, not met, but
b
the conditions or the condition would be met if at all material times the employee had been a UK employee.
4
This Chapter applies as if the employee had been a UK employee as mentioned in subsection (3)(b).
5
The employee is a UK employee if—
a
the employee is UK resident ..., and
b
the duties of the relevant employment are performed in the United Kingdom.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in s. 1009(5)(a) omitted (with application in accordance with Sch. 46 para. 141(2) of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 141(1)
S. 1009(6) omitted (with effect in accordance with s. 12(5)-(7) of the amending Act) by virtue of Finance Act 2017 (c. 10), s. 12(4)(b)
Pt. 12 applied by 2010 c. 8, s. 425(5) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))
S. 1009(2A) inserted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 23(3), 38; S.I. 2013/1755, art. 2
Words in s. 1009(2)(a) substituted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 23(2), 38; S.I. 2013/1755, art. 2