Employee shareholder shares: employment-related securities and options
Employee shares are employment-related securities subject to the special rules in Part 7 ITEPA03. For example, the shares may be restricted securities or the employee shareholder shares may give the shareholder the right to convert them into shares of a different description. See CG56320+ for the capital gains treatment of employment-related securities generally.
Shares acquired pursuant to an employment-related securities option may be exempt employee shareholder shares providing they fall within the £50,000 value limit and meet the other relevant conditions. It should be noted that it is a requirement, see CG56705, that the employee gives no consideration for his or her shares other than by entering into the employee shareholder agreement.