Part 1Direct and indirect taxes
Employee shareholder shares
12Employee shareholder shares: amount treated as earnings
1
In section 226A of ITEPA 2003 (amount treated as earnings)—
a
in subsection (2), for “calculated in accordance with subsection (3)” substitute “
equal to the market value of the shares
”
;
b
omit subsection (3);
c
in subsection (6), omit “and sections 226B to 226D”;
d
in subsection (7), after “subsection (1)” insert “
(but not subsection (2))
”
.
2
Omit sections 226B to 226D of ITEPA 2003 (deemed payment).
3
In consequence of subsection (2), in ITEPA 2003 omit the following—
a
section 479(3A);
b
section 531(3A);
c
section 532(4A).
4
In consequence of subsection (2), in CTA 2009 omit the following—
a
in section 1005, the definition of “employee shareholder share”;
b
section 1009(6);
c
in section 1010(1), “and, in the case of employee shareholder shares, section 1038B”;
d
in section 1011(4)(b), “(but see also section 1038B of this Act)“;
e
in sections 1018(1) and 1019(1), “and, in the case of employee shareholder shares, section 1038B”;
f
sections 1022(5), 1026(5), 1027(5), 1033(5) and 1034(5);
g
section 1038B;
h
sections 1292(6ZA) and 1293(5A);
i
in Schedule 4, the entry relating to “employee shareholder share”.
5
The amendments made by this section have effect in relation to shares acquired in consideration of an employee shareholder agreement entered into on or after the relevant day.
6
The relevant day is 1 December 2016, subject to subsection (7).
7
Where the individual entering into an employee shareholder agreement receives the advice referred to in section 205A(6)(a) of the Employment Rights Act 1996—
a
on 23 November 2016, but
b
before 1.30 pm on that day,
the relevant day is 2 December 2016.