Section 186A | The number of employees requirement ^F1

(1)If the issuing company is a single company, the full-time equivalent employee number for it must be less than the permitted limit when the relevant shares are issued.^F1F2

(2)If the issuing company is a parent company, the sum of—^F1F3

(a)the full-time equivalent employee number for it, and^F1

(b)the full-time equivalent employee numbers for each of its qualifying subsidiaries,^F1

must be less than the permitted limit when the relevant shares are issued.

(3)The full-time equivalent employee number for a company is calculated as follows—Step 1Find the number of full-time employees of the company.Step 2Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.The result is the full-time equivalent employee number.^F1

(3A)The permitted limit” means—^F1F4

(a)if the issuing company is a knowledge-intensive company (see section 252A) at the time the relevant shares are issued, 500, and^F1F4

(b)in any other case, 250.^F1F4

(3B)The Treasury may by regulations amend subsection (3A)(a) or (b) by substituting a different number for the number for the time being specified there.^F1F4

(4)In this section references to an employee—^F1

(a)include a director, but^F1

(b)do not include—^F1

(i)an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or^F1F5F6F7

(ii)a student on vocational training.^F1