CE 6 Trusts are nominees
A trust is treated as the nominee of a company (company A) to the extent to which the trust’s activities relate to an employee share scheme and—
(a)
shares or related rights in company A are issued or transferred under the scheme:
(b)
shares or related rights are issued or transferred to company A’s employees, shareholder-employees, or associates of them, under the scheme.
Defined in this Act: associated person, company, employee, employee share scheme, share, shareholder-employee
CE 7 Meaning of employee share scheme
Employee share scheme means—
(a)
an arrangement with a purpose or effect of issuing or transferring shares in a company (company A) to a person—
(i)
who will be, is, or has been an employee of company A or of another company that is a member of the same group of companies as company A:
(ii)
who will be, is, or has been a shareholder-employee in relation to company A or in relation to another company that is a member of the same group of companies as company A:
(iii)
who is an associate of a person described in subparagraph (i) or (ii) (person A), if the arrangement is connected to person A’s employment or service; but
(b)
does not include an arrangement that—
(i)
is a share purchase scheme:
(ii)
requires market value consideration to be paid by a person described in paragraph (a) for the transfer of shares in the company on the share scheme taxing date:
(iii)
requires a person described in paragraph (a) to put shares, acquired by them for market value, at risk if the arrangement provides no protection against a fall in the value of the shares.
Defined in this Act: arrangement, associated person, company, consideration, employee, employment, group of companies, market value, share, share purchase scheme, share scheme taxing date, shareholder-employee
CE 7B Meaning of share scheme taxing date
Meaning
(1)
Share scheme taxing date means, in relation to shares or related rights under an employee share scheme, the earlier of the following dates:
(a)
the first date when the shares are held by or for the benefit of an employee share scheme beneficiary (beneficial ownership) and after which, under the provisions of the scheme,—
(i)
there is no real risk that beneficial ownership may change or that a right or requirement in relation to the transfer or cancellation of the shares may operate; and
(ii)
there is no benefit accruing to the employee share scheme beneficiary in relation to a fall in value of the shares; and
(iii)
there is no real risk that there will be a change in the terms of the shares affecting the value of the shares:
(b)
the date when the shares or related rights of an employee share scheme beneficiary are cancelled or are transferred to a person who is not associated with a beneficiary described in section CE 7(a)(i) or (ii).
Exclusions
(2)
For the purposes of applying subsection (1), the following requirements and rights are ignored:
(a)
a right or requirement in relation to transfer by the employee share scheme beneficiary for market value consideration at the time of the transfer:
(b)
a right or requirement that is not contemplated by the employee share scheme’s provisions:
(c)
a right or requirement that, at the time it came into existence, had no real risk of operating or no real commercial significance:
(d)
a right or requirement in relation to the transfer of shares, if the right or requirement is 1 that also applies to shares not under the employee share scheme.
Defined in this Act: associated person, consideration, employee share scheme, employee share scheme beneficiary, market value, share
CE 7C Meaning of employee share scheme beneficiary
Employee share scheme beneficiary means, for an employee share scheme,—
(a)
a person (person A) who is described in section CE 7(a):
(b)
a person who is an associate of person A.
Defined in this Act: associated person, employee share scheme
CE 7D Meaning of replacement employee share scheme
Replacement employee share scheme means, for an employee share scheme (the old scheme), another employee share scheme to which members of the old scheme are transferred.
Defined in this Act: employee share scheme