Taxes Consolidation Act 1997 Schedule 11, paragraph 11A

Specified securities used in an approved profit-sharing scheme

Schedule 11, paragraph 11A sets out a separate set of conditions that apply where specified securities (as distinct from ordinary shares) are used in an approved profit-sharing scheme.

• Paragraph 11A replaces paragraphs 8 to 11 of Schedule 11 where specified securities are used in an approved profit-sharing scheme, providing a tailored set of rules for such securities.
• The specified securities must be issued by an independent company (one not controlled by another company) or by a subsidiary of a quoted company that is not a close company within the meaning of section 430.
• The specified securities must not be subject to any restrictions that do not apply equally to all securities of the same class.
• An exception allows the company's articles of association to require disposal of specified securities when a director or employee leaves, provided the disposal is a sale for money on terms set out in the articles and the same terms apply generally to all securities of that class.