Income Tax (Earnings and Pensions) Act 2003 section 192

Application of this Chapter

Section 192 sets out the circumstances in which the rules on employment-related shares apply, covering situations where an employee acquires shares, or an interest in shares, by reason of their employment.

• The chapter applies when a person acquires shares, or an interest in shares, as a result of their employment, including past, present or prospective employment
• The shares do not have to be in the employer's own company — they can be shares in any company
• Where an employer makes available a right or opportunity to acquire shares or an interest in shares, this is automatically treated as being provided by reason of the employment, unless specific exceptions apply
• Shares acquired under these circumstances are formally labelled "employment-related shares" and the event is referred to as "the acquisition" throughout the rest of the chapter