Section 1009 — Corporation Tax Act 2009: Conditions relating to employee's income tax position

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