Section 257DJ The number of employees requirementF1

United Kingdom

(1)

If the issuing company is a single company, the full-time equivalent employee number for it must be less than 25 when the relevant shares are issued.

(2)

If the issuing company is a parent company, the sum of—

(a)

the full-time equivalent employee number for it, and

(b)

the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than 25 when the relevant shares are issued.

(3)

The full-time equivalent employee number for a company is calculated as follows—

Step 1 Find the number of full-time employees of the company.
Step 2 Add, 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.

(4)

In this section references to an employee—

(a)

include a director, but

(b)

do not include—

(i)

an employee on maternity F2, paternity F3, shared parental F4, parental bereavement or neonatal care leave, or

(ii)

a student on vocational training.

Annotations

F1: Pt. 5A inserted (17.7.2012) (with effect in accordance with Sch. 6 para. 24(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 6 para. 1
F2: Words in s. 257DJ(4)(b)(i) substituted (1.12.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 7 para. 71; S.I. 2014/1640, art. 5(2)(cc)
F3: Words in s. 257DJ(4)(b)(i) substituted (18.1.2020) by Parental Bereavement (Leave and Pay) Act 2018 (c. 24), s. 2(2), Sch. para. 52; S.I. 2020/45, reg. 2
F4: Words in s. 257DJ(4)(b)(i) substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 52; S.I. 2025/41, reg. 2

C1: Pt. 5A applied by Taxation of Chargeable Gains Act 1992 (c. 12), Sch. 5BB para. 8(4) (as inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 6 para. 5)