An individual is not an eligible employee in relation to the relevant company if he or she (or any associates, or the individual together with any associates, see below) has a material interest in that company or, if that company is a parent company, in any member of the group.

(ITEPA 2003, Sch. 5, para. 28)

However, the material interest qualification is in many ways reasonably generous. Material interest is broadly defined by reference to a 30 per cent interest in the company (or, where the company is close, in its assets). More specifically, the legislation provides that a material interest means the following:

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.