ERSM90040 - Post Acquisition Benefits from Securities

Benefits: link with employment-related securities

Between 16 April 2003 and 1 December 2004, for a benefit to fall within Chapter 4, that benefit had to be received “by virtue of the ownership of employment-related securities". There had to be some right or discretion under the terms of ownership set out in the articles of association of the company or shareholders’ agreement regarding the securities for the benefit provided, or a decision by the employer to provide the benefit to owners of such securities.

From 2 December 2004, for a benefit to fall within Chapter 4, that benefit must be received “in connection with employment-related securities”. The wording was amended to be more consistent with wording used elsewhere in Part 7 and make clear that chargeable benefits may arise otherwise than through direct or continuing ownership of securities. See ERSM90050 on nature of benefit.