Section 149B — Taxation of Chargeable Gains Act 1992: Employee incentive schemes: conditional interests in shares.

Employee incentive schemes: conditional interests in shares. 149B 1 Where—

a an individual has acquired an interest in any shares or securities which is only conditional, b that interest is one which for the purposes of Chapter 2 of Part 7 of ITEPA 2003 (conditional interests in shares) is taken to have been acquired by him as a director or employee of a company, and c by virtue of section 17(1)(b) the acquisition of that interest would, apart from this section, be an acquisition for a consideration equal to the market value of the interest, section 17 shall not apply for calculating the consideration.

2 Instead, the consideration for the acquisition shall be taken (subject to section 120) to be equal to the actual amount or value of the consideration given for that interest as computed in accordance with section 429 of ITEPA 2003 .

3 This section shall apply in relation only to the individual making the acquisition and, accordingly, shall be disregarded in calculating the consideration received by the person from whom the interest is acquired.

4 Expressions used in this section and in Chapter 2 of Part 7 of ITEPA 2003 have the same meanings in this section as in that Chapter .

5 This section does not apply to acquisitions on or after the day appointed under paragraph 3(2) of Schedule 22 to the Finance Act 2003.

6 References in this section to ITEPA 2003 are to that Act as originally enacted.