Income Tax (Earnings and Pensions) Act 2003 section 468

Meaning of "employee-controlled"

Section 468 defines when a company is considered "employee-controlled" for the purposes of the employee share scheme provisions.

• A company is employee-controlled when the majority of its voting power is held by employees or their connected persons.
• The definition draws on established tax concepts of "connected persons" and "control" as used elsewhere in tax legislation.
• This definition is relevant to determining how certain share-related benefits and arrangements are taxed under the employee share scheme rules.
• The section originates from earlier Finance Act 1988 provisions and was amended by the Finance Act 2003.