C1Part 7F4Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
F1Chapter 3ASecurities with artificially depressed market value
Pt. 7 Ch. 3A inserted (16.4.2003 with effect in accordance with Sch. 22 para. 5(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 5(1)
Tax charge on acquisition
446BCharge on acquisition
1
This section applies where the market value of employment-related securities at the time of the acquisition has been reduced by at least 10% as a result of things done otherwise than for genuine commercial purposes within the period of 7 years ending with the acquisition.
2
The taxable amount determined under section 446C counts as employment income of the employee for the tax year in which the acquisition occurs.
3
But this section does not apply if section 425(2) (no charge on acquisition of certain restricted securities or restricted interests in securities) applies in relation to the employment-related securities.
4
This section does not affect any liability to income tax arising in respect of the acquisition of the employment-related securities under—
a
Chapter 1 of Part 3 (earnings),
b
Chapter 10 of Part 3 (taxable benefits: residual liability to charge),
F3ba
section 226A (employee shareholder shares: amount treated as earnings),
c
Chapter 3 of this Part (acquisition by conversion),
d
Chapter 3C of this Part (acquisition for less than market value), F2...
e
Chapter 5 of this Part (acquisition pursuant to securities option) F5, or
f
Chapter 2 of Part 7A (employment income provided through third parties)
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)