Income Tax (Earnings and Pensions) Act 2003 section 226D

Shareholder or connected person having material interest in company

Section 226D dealt with restrictions on the employee shareholder shares tax exemption where the shareholder (or a connected person) had a material interest in the employing company, but this section has been removed from the legislation.

• Section 226D has been omitted from the Act by the Finance Act 2017.
• The repeal applies to shares acquired under employee shareholder agreements entered into on or after 1 December 2016.
• A later effective date of 2 December 2016 applies in limited circumstances where the individual received the required independent advice on 23 November 2016, but before 1.30 pm on that day.
• The removal of this section forms part of the wider abolition of the employee shareholder status tax exemptions.