Section 20 | Research Institution Spin-Out Companies | Finance Act 2005 C7

20 Research institution spin-out companies

Finance Act 2005 (2005 c 7) | Legislation

Chapter 3
Employment-related Securities

20 Research institution spin-out companies

(1) In Part 7 of ITEPA 2003 (employment income: income and exemptions relating to securities), after Chapter 4 insert—

“Chapter 4A
Shares in Research Institution Spin-out Companies

Introduction

451 Application of this Chapter

(1) This Chapter applies where—

(a) an agreement is made for one or more transfers of intellectual property (an “intellectual property agreement”) from one or more research institutions to a company (a “spin-out company”),

(b) a person acquires shares (or an interest in shares) in the spin-out company before the intellectual property agreement is made or within the period of 183 days beginning with the date on which it is made,

(c) the right or opportunity to acquire the shares (or interest in shares) was available by reason of employment by the research institution (or any of them) or by the spin-out company, and

(d) the person is involved in research in relation to any of the intellectual property that is the subject of the intellectual property agreement.

(2) But this Chapter does not apply if the avoidance of tax or national insurance is the main purpose (or one of the main purposes) of the arrangements under