Income Tax Act 2007

[F1257DJThe number of employees requirementU.K.
This section has no associated Explanatory Notes

(1)If the issuing company is a single company, the full-time equivalent employee number for it must be less than 25 when the relevant shares are issued.

(2)If the issuing company is a parent company, the sum of—

(a)the full-time equivalent employee number for it, and

(b)the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than 25 when the relevant shares are issued.

(3)The full-time equivalent employee number for a company is calculated as follows—

  • Step 1 Find the number of full-time employees of the company.

  • Step 2 Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable. The result is the full-time equivalent employee number.

(4)In this section references to an employee—

(a)include a director, but

(b)do not include—

(i)an employee on maternity [F2, paternity [F3, shared parental or parental bereavement]] leave, or

(ii)a student on vocational training.]

Textual Amendments

F1Pt. 5A inserted (17.7.2012) (with effect in accordance with Sch. 6 para. 24(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 6 para. 1

F2Words in s. 257DJ(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 71; S.I. 2014/1640, art. 5(2)(cc)