This paragraph relates to the operation of section 474 (exclusions from Chapter 5 of Part 7: residence) in relation to an acquisition made before 6th April 2003.

Section 474(1) has effect with the substitution of “ the employee was not chargeable under Case I of Schedule E in respect of the employment ” for the words from “the earnings”.

This paragraph relates to the operation of section 478 (amount of charges) in relation to a F3securities option F5acquired before 6th April 2003.

For the purposes of section 478(1), any amount charged to tax under Schedule E in respect of the F2acquisition of the F3securities option is a deductible amount.

This paragraph relates to the operation of section F6478 in relation to an event that is a chargeable event by virtue of section 477(3)(a) or (b) (acquisition of securities pursuant to an option and assignment and release of option) in the case of a share option acquired before 6th April 2003.

For the purposes of section F7478(1), if an amount was chargeable to tax under section 185(6) of ICTA (charge where option under approved share option scheme granted at a discount) in respect of the share option, so much of that amount as is attributable to the shares in question is a deductible F7amount.