Section 169VW — Taxation of Chargeable Gains Act 1992: “Relevant employee”

“Relevant employee” 169VW 1 This section applies to determine for the purposes of—

a section 169VB(2)(g), or b section 169VH(2)(c), whether a particular person has at any time in the relevant period been a “relevant employee” in respect of the issuing company.

2 A person who has at any time in the relevant period been an officer or employee of—

a the issuing company, or b a connected company, is to be regarded as having at that time been a relevant employee in respect of the issuing company, but this is subject to subsections (3) and (5).

3 If—

a a person is an unremunerated director of the issuing company or a connected company at any time in the relevant period, and b the condition in subsection (4) is met, the fact that the person holds that directorship at that time does not make the person a relevant employee in respect of the issuing company at that time.

4 The condition referred to in subsection (3) is that at no time before the relevant period had the person mentioned in that subsection, or a person connected with that person, been—

a connected with the issuing company, or b involved in carrying on (whether on the person's own account or as a partner, director or employee) the whole or any part of the trade, business or profession carried on by the issuing company or a company connected with that company.

5 If—

a a person becomes an employee of the issuing company or a connected company at a time which is—

i within the relevant period, but ii not within the first 180 days of that period, b at the beginning of the relevant period, there was no reasonable prospect that the person would become such an employee within the relevant period, and c the person is not at any time in the relevant period a director of the issuing company or a connected company, that employment of the person does not make the person a relevant employee in respect of the issuing company at any time in the relevant period.

6 For the purposes of subsection (5) there is a “reasonable prospect” of a thing if it is more likely than not.

7 In this section— “ director ” is to be read in accordance with section 452 of CTA 2010, “ connected company ” means a company which at any time in the relevant period is connected with the issuing company (and it does not matter for this purpose whether that time is a time when the person in question is an officer or employee of either company); “ the issuing company ” means the company mentioned in (as the case may be) section 169VB(2)(g) or section 169VH(2)(c); “ the relevant period ” means the period mentioned in (as the case may be) section 169VB(2)(g) or section 169VH(2)(c); “ unremunerated director ” has the meaning given by section 169VX.