Section 449 — Income Tax (Earnings and Pensions) Act 2003: Case outside this Chapter

Case outside this Chapter 449 1 This Chapter does not apply if—

a the employment-related securities are shares (or an interest in shares) in a company of a class, b a similar benefit is received by the owners of all the company’s shares of the class, ba subsection (1A) is satisfied, and c subsection (2) or (3) is satisfied. 1A This subsection is satisfied unless something which affects the employment-related securities has been done as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax or national insurance contributions.

2 This subsection is satisfied if, immediately before the receipt of the benefit, the company is employee-controlled by virtue of holdings of shares of the class.

3 This subsection is satisfied if, immediately before the receipt of the benefit, the majority of the company’s shares of the class are not employment-related securities. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .