{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-186A",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-186A.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/186A",
  "kind": "section",
  "number": "186A",
  "heading": "The number of employees requirement",
  "text": "(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.\n(2) If the issuing company is a parent company, the sum of—\n(a) the full-time equivalent employee number for it, and\n(b) the full-time equivalent employee numbers for each of its qualifying subsidiaries,\nmust be less than the permitted limit when the relevant shares are issued.\n(3) The full-time equivalent employee number for a company is calculated as follows—\nStep 1\nFind the number of full-time employees of the company.\nStep 2\nAdd, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.\nThe result is the full-time equivalent employee number.\n(3A) The permitted limit” means—\n(a) if the issuing company is a knowledge-intensive company (see section 252A) at the time the relevant shares are issued, 500, and\n(b) in any other case, 250.\n(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.\n(4) In this section references to an employee—\n(a) include a director, but\n(b) do not include—\n(i) an employee on maternity , paternity , shared parental , parental bereavement or neonatal care leave, or\n(ii) a student on vocational training.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 186A inserted (19.7.2007) by Finance Act 2007 (c. 11), Sch. 16 para. 2(3) (with Sch. 16 para. 2(4)(5))"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 186A(1) substituted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 186A(2) substituted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 186A(3A)(3B) inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 13(b)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 186A(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 70; S.I. 2014/1640, art. 5(2)(cc)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 186A(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 51; S.I. 2020/45, reg. 2"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 186A(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 51; S.I. 2025/41, reg. 2"
    }
  ],
  "outstanding_effects": [
    {
      "type": "word substituted",
      "affecting": "ukpga/2025/36",
      "affecting_title": "Employment Rights Act 2025"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/186A",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}