Para 35: loan charge relevant step: exclusion: acquisition of unlisted employer shares
Schedule 11 F(No 2)A 2017
Para 35 provides an exclusion from the 2019 loan charge for loans or quasi-loans made in certain circumstances in respect of the acquisition of unlisted employer shares.
For the exclusion to apply the following conditions need to be met:
- the loan or quasi-loan was made before 9 December 2010
- where a loan was made, it was used by the employee solely to acquire employer shares
- where a quasi-loan was made, the transfer of assets in relation to the quasi-loan was the transfer of employer shares to the employee
- the employer shares are acquired or transferred before the end of a period of one year from the day the loan or quasi-loan was made
- the employer shares cannot be listed on a recognised stock exchange at any time from the day the loan or quasi-loan is made to the day when either the employee ceases to hold the shares or the loan or quasi-loan is fully repaid
Para 35(3) defines employer shares as shares which form part of the ordinary share capital of the employer or any other companies which are a member of the same group of companies as the employer. Any other companies would have to be a member of the same group at the time the employer shares are acquired.