ITEPA election clause—Subscription and shareholders’ agreement

The following Tax precedent provides comprehensive and up to date legal information covering:

  • ITEPA election clause—Subscription and shareholders’ agreement

[11.9] Each Founder and any Permitted Transferee (other than an associated person as defined in section 421C of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)) who subscribes for, or otherwise acquires, any shares or securities in any Group Company under this Agreement (whether before, on or after Completion) hereby undertakes that they shall or (if they are not the employee or director by reason of whose employment the shares or securities are made available (the Relevant Employee)) shall procure that the Relevant Employee shall (in each case, an Elector):

[11.9.1] where permitted, enter into an irrevocable election pursuant to ITEPA 2003, s 431(1) in the form approved by HMRC to elect that any relevant tax charges shall be calculated by reference to the unrestricted market value of the shares or securities acquired (Election) within 14 days of the subscription for or acquisition of such shares or securities; and


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