Taxes Consolidation Act 1997 Schedule 11 paragraph 8

Companies and their shares

Schedule 11, paragraph 8 specifies the companies whose ordinary shares may be used as scheme shares in an approved profit sharing scheme.

• The shares must form part of the ordinary share capital of one of four categories of company, subject to the additional conditions in paragraphs 8A and 8B.
• The simplest cases are shares in the company that established the scheme, or in a company that controls that company.
• Shares in a consortium member company (or its parent) are also eligible, provided the consortium member beneficially owns at least 15 per cent of the ordinary share capital of the company owned by the consortium.
• Shares originally issued to an Employee Share Ownership Trust under a share exchange to which section 586 applies, and subsequently transferred to the approved scheme trustees, also qualify.