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HMRC internal manual

Employment Related Securities Manual

Restricted Securities: Shares acquired before 16 April 2003: exemption from charge: the 7 year rule

An event is only a chargeable event if the person who acquired the shares has been at some time within the period of seven years ending with the date of the chargeable event, a director or employee of one of the following companies ITEPA03/S452 (as originally enacted):

  • The company that issued the shares.
  • The company as a director or employee of which he or she acquired the shares. This could be a different company from the one that issued the shares. The employee might, for instance, work for a subsidiary group company and be given shares in the group parent. Or the employee might be given shares in a company completely unconnected with the one for which he or she works.
  • An associated company of one of the above. Associated company has the meaning given to it by CTA10/S449.