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A common feature of employee share schemes is that employees may be offered shares, share options, or possibly other assets by reason of their employment. Part 7 ITEPA03 contains special Income Tax rules about cases where securities or securities options are acquired in connection with an employment and the definition of “securitiesâ€� for the purposes of the employment related securities legislation includes a wide range of intangible assets in addition to shares. See Section 420 ITEPA03. Not all of the assets falling within this definition will give rise to a chargeable gain on disposal. For example, it includes government loan stock. But most will. »Ê¹ÚÌåÓýappre are details of CGT-exempt assets at CG11710 and CG12600+.

Some schemes are set up to comply with particular statutory requirements in order to secure beneficial tax treatment. »Ê¹ÚÌåÓýappse schemes (with the exception of Enterprise Management Incentives) require prior approval from HMRC and are often referred to as “approved schemes.â€� By contrast, other schemes are commonly referred to as “unapproved schemesâ€�.

»Ê¹ÚÌåÓýapp operation of the TCGA is modified to take into account the Income Tax treatment of employment-related securities. Guidance on employment-related securities and unapproved schemes generally is at CG56321+. Guidance on approved schemes and the Enterprise Management Incentives is at CG56400+. Apart from points covered there, the normal Capital Gains rules apply.