A security (which includes shares, debt, derivatives and interests in investment partnerships) will be an employment-related security where the right or opportunity to acquire the securities (or interest in securities) is:
available by reason of an employment of the person acquiring the securities (or interest) or any other person, or
made available by a person's employer (or a person connected with a person's employer) (the deeming provision) unless such right or opportunity is made available:
by an individual, and
in the normal course of the domestic, family or personal relationships of that individual
The rules on employment-related securities apply very broadly because of the deeming provision. It means that the employment-related securities rules must be considered whenever shares are acquired in the employing company or a connected company.
For more details, see Practice Notes: How employment income is taxed—shares or securities and What is an employment-related security?
For a note summarising the main tax rates, see Practice Note: Tax and other rates which are relevant to share incentives.
For more details on tax indemnities and their use
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