Income Tax (Earnings and Pensions) Act 2003 section 198

Shares to which this Chapter applies

Section 198 defines which shares fall within the scope of the employment-related securities rules and when shares are treated as acquired by reason of a person's employment.

• Shares acquired through a right or opportunity available by reason of employment are classified as "employment-related shares" and fall within these rules
• The shares do not have to be in the employer's own company — they can be shares in any company
• A right or opportunity to acquire shares is treated as available "by reason of the employment" if it is made available by the employer, or by a person connected with the employer
• This test mirrors the approach used for determining whether other benefits are provided by reason of employment