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HMRC internal manual

Capital Gains Manual

Employee shareholder shares: employee shareholder status

Employee shareholder is new employment status available from 1 September 2013. Employee shareholders have different employment rights to employees, and are awarded at least £2,000 worth of shares in their employer or a parent company. There is no requirement for a company wishing to offer an employee shareholder contract to obtain approval or agreement from HMRC.

Providing all of the statutory conditions for employee shareholder status are met, or an employee shareholder agreement satisfies the conditions set out in the guidance published by the Department for Business, Innovation & Skills, HMRC does not anticipate challenging an individual’s status as an employee shareholder. This includes cases in which statutory employment rights foregone under an employee shareholder agreement are reinstated by contract.