Taxes Consolidation Act 1997 Schedule 12, paragraph 7A

Restructuring of company

Paragraph 7A of Schedule 12 modifies the meaning of "employee" or "director" for certain Employee Share Ownership Trust (ESOT) provisions where a corporate restructuring covered by paragraph 11A has taken place.

• Where paragraph 11A applies (e.g. ,restructurings such as those involving TSB Bank or ICC Bank plc), the normal meaning of "employee" or "director" in paragraphs 8, 9 and 10 is overridden.
• The individual must have been an employee or director of the relevant company, or of a company within its group, on the date the ESOT was originally established.
• The individual must also be an employee or director of a qualifying company referred to in paragraph 11A(3)(b) at the relevant time for the purpose of the paragraph in question.
• Both conditions must be satisfied — a past connection to the original group at the date of establishment and a current connection to a qualifying successor company.