{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-257DJ",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-257DJ.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/257DJ",
  "kind": "section",
  "number": "257DJ",
  "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 25 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 25 when the relevant shares are issued.\n(3) The full-time equivalent employee number for a company is calculated as follows—\nStep 1 Find the number of full-time employees of the company.\nStep 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.\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": "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"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "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"
    }
  ],
  "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/257DJ",
    "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."
}