Section 421H — Income Tax (Earnings and Pensions) Act 2003: Meaning of “employee-controlled” etc

Meaning of “employee-controlled” etc 421H 1 For the purposes of Chapters 2 to 4 a company is “ employee-controlled ” by virtue of shares of a class if—

a the majority of the company’s shares of that class (other than any held by or for the benefit of an associated company) are held by or for the benefit of employees of the company or a company controlled by the company, and b those employees are together able as holders of the shares to control the company. In this subsection “ employee ” includes a person who is to be or has been an employee.

2 In this section and Chapters 2 to 4 “ associated company ” has the meaning given by section 449 of CTA 2010 .