½Û×ÓÊÓƵ

Employment related securities—overview and structure of this Division

Directors and employees frequently acquire shares, or the right to receive shares, by reason of their office or employment (see E4.502).

This Division broadly follows the structure of the main legislation covering employment related securities, namely ITEPA 2003, ss 417–554 (Pt 7). The generic terms 'shares' and 'share options' are used widely within the Division as an informal description for all forms of securities, however for a full definition of the term 'employment related securities', see E4.507A.

The Division firstly details the rules and considerations which apply to non tax-advantaged share and share option arrangements (sometimes called 'unapproved' shares). This begins with underlying principles and case law, considering the most straightforward arrangements first, followed by various more complex arrangements which will affect the value of an employee's holding of shares.

Secondly the Division considers the rules which apply to tax-advantaged or 'HMRC approved' shares.

Further brief details