Section 421B | Application of Chapters 2 to 4A ^F1

(1)Subject as follows (and to any provision contained in Chapters 2 to 4A ) those Chapters apply to securities, or an interest in securities, acquired by a person where the right or opportunity to acquire the securities or interest is available by reason of an employment of that person or any other person.^F2

(2)For the purposes of subsection (1)—

(a)securities are, or an interest in securities is, acquired at the time when the person acquiring the securities or interest becomes beneficially entitled to those securities or that interest (and not, if different, the time when the securities are, or interest is, conveyed or transferred), and

(b)“employment” includes a former or prospective employment.

(3)A right or opportunity to acquire securities or an interest in securities made available by a person’s employer, or by a person connected with a person’s employer, is to be regarded for the purposes of subsection (1) as available by reason of an employment of that person unless—

(a)the person by whom the right or opportunity is made available is an individual, and

(b)the right or opportunity is made available in the normal course of the domestic, family or personal relationships of that person.

(4)Chapters 2 to 4A cease to apply to securities, or an interest in securities, when subsection (5), (6) or (7) is satisfied.^F3

(5)This subsection is satisfied immediately after the securities are, or the interest in securities is, disposed of otherwise than to an associated person.

(6)This subsection is satisfied immediately before the death of the employee.

(7)This subsection is satisfied 7 years after the first date after the acquisition on which the employee is an employee of none of the following—

(a)the employer,

(b)(if the securities are, or the interest in securities is an interest in, securities issued by a company) the company by which they are issued, or

(c)a person connected with a person within paragraph (a) or (b).

(8)In this Chapter and Chapters 2 to 4A —^F4