Taxation of Chargeable Gains Act 1992 section 169VW

"Relevant employee"

Section 169VW defines what makes a person a "relevant employee" of the company that issued the shares, which is one of the conditions that can prevent shares from qualifying for investors' relief.

• A person who has been an officer or employee of the issuing company, or of a connected company, at any time during the relevant period is treated as a "relevant employee" of the issuing company.
• An unremunerated director is not treated as a relevant employee, provided that neither they nor a connected person had previously been connected with the company or involved in carrying on its trade or business before the relevant period began.
• A person who becomes an employee after the first 180 days of the relevant period is not treated as a relevant employee, provided there was no reasonable prospect of their employment at the start of the period and they have not been a director at any point during the period.
• "Reasonable prospect" means it was more likely than not; a "connected company" is one connected with the issuing company at any time during the relevant period.