New Section 226B of ITEPA: Deemed payment for employee shareholder shares
10.New section 226B of ITEPA provides that, subject to certain conditions, an employee shareholder is deemed to have made a payment of £2,000 for employee shareholder shares. For the purposes of determining the date on which this payment is deemed to have been made, subsection (2) applies where all the employee shareholder shares are acquired on the same day and subsection (3) applies where employee shareholder shares are acquired on more than one day.
11.New subsections (4) and (5) set out arrangements for the allocation of this £2,000 deemed payment in cases where employee shareholder shares with a value in excess of this amount are acquired.
12.New subsection (6) makes this deemed £2,000 payment subject to conditions set out in new sections 226C and 226D of ITEPA.
13.New subsection (7) provides that an employee shareholder is treated as not having given any consideration (other than the deemed £2,000 payment where applicable) for shares they acquire as an employee shareholder.
14.New subsection (8) provides that subsection (7) of new section 226A of ITEPA also applies for the purpose of determining the market value of shares in new section 226B.
