CG61973 | Reliefs: roll-over relief on transfer of shares to Share Incentive Plan: disposal conditions: eligible shares

To qualify for relief, the disposal must be of shares or interests in shares that are:

• not listed on a recognised stock exchange

• not shares in a company under the control of another company whose shares are listed on a recognised stock exchange; and

• satisfy the requirements in ITEPA03/SCH2.

To satisfy the requirements in ITEPA03/SCH2 the shares must be:

• ordinary share capital of:

  • a company which is not under the control of another company and is not a “service company”. A “service company” is one whose business is substantially the provision of the services of its employees to businesses, including partnerships, which control the company, or to associated companies; and

  • the company that established the Share Incentive Plan, or of a company controlling it, or of a consortium member owning the company or its parent

• fully paid up

• non-redeemable (except for shares in a workers’ co-operative); and

• broadly not subject to any restrictions, other than those affecting all the ordinary shares in the company, or those involving voting or pre-emption rights.