[554K Exclusions: earmarking for employee share schemes (2)]
Income Tax (Earnings and Pensions) Act 2003 (2003 c 1) | Legislation

[554K  Exclusions: earmarking for employee share schemes (2)]

[(1)     This section applies if—

(a)     there is an arrangement (“B's employee share scheme”) under which, in respect of A's employment with B, an award may be made to A of—

(i)     relevant shares, or

(ii)     a sum of money the amount of which is to be determined by reference to the market value of any relevant shares at the time the sum is to be paid,

(b)     the main purpose of the award would not be the provision of relevant benefits,

(c)     the relevant shares would be—

(i)     shares (including stock) in, or

(ii)     instruments within paragraph (b) of the definition of “relevant shares” in section 554I(4) issued by,

a trading company or a company which controls a trading company,

(d)     the award would be on terms the main purpose of which is to ensure—

(i)     that the relevant shares are received, or

(ii)     that the sum of money is paid,

only if a specified exit event, or an exit event within a specified description, occurs, and

(e)     as at the time the award is made, there would be a reasonable chance that the specified exit event,

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