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CE 5: Meaning of expenditure on account of an employee
or “What counts as your employer paying for your work expenses”
You could also call this:

“Trustees act on behalf of companies in employee share schemes”

When a company sets up a special plan to give shares or related rights to its employees, their family members, or people connected to them, the law treats the trustee of this plan in a special way. The trustee is considered to be acting on behalf of the company. This applies to situations where the company’s shares or related rights are given out as part of an employee share scheme or a type of scheme that doesn’t have to pay tax (called an exempt ESS). The law sees the trustee as representing the company when they handle these shares or rights, whether they’re giving them directly to the company’s workers or to people connected to the workers.

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Next up: CE 7: Meaning of employee share scheme

or “What employee share schemes are and how they work”
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Part C Income
Employee or contractor income: Definitions

CE 6Trusts are nominees

  1. A trustee is treated as the nominee of a company (company A) to the extent to which the trustee’s activities relate to an employee share scheme or an exempt ESS and—

  2. shares or related rights in company A are issued or transferred under the scheme:
    1. shares or related rights are issued or transferred to company A’s employees, shareholder-employees, or associates of them, under the scheme.

      Notes
      • Section CE 6: replaced, on , by section 22 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section CE 6: amended, on , by section 17(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
      • Section CE 6 list of defined terms exempt ESS: inserted, on , by section 17(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).