# Income Tax Act 2007, Section 257DJ: The number of employees requirement

Extent: E+W+S+N.I.

(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 , paternity , shared parental , parental bereavement or neonatal care leave, or
(ii) a student on vocational training.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/257DJ (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-257DJ
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.