Chapter 3DSecurities disposed of for more than market value

446XApplication of this Chapter

This Chapter applies if—

a

employment-related securities are disposed of by an associated person so that no associated person is any longer beneficially entitled to them, and

b

the disposal is for a consideration which exceeds the market value of the employment-related securities at the time of the disposal.

446YAmount treated as income

1

Where this Chapter applies the amount determined under subsection (3) counts as employment income of the employee for the relevant tax year.

2

The “relevant tax year” is the tax year in which the disposal occurs.

3

The amount is—

$\mathrm{CD}-\mathrm{MV}-\mathrm{DA}$

where—

CD is the amount of the consideration given on the disposal,

MV is the market value of the employment-related securities at the time of the disposal, and

DA is the amount of any expenses incurred in connection with the disposal.

446ZDefinitions

1

In this Chapter “market value” has the meaning indicated in section 421(1).

2

For the purposes of this Chapter sections 421(2) and 421A apply for determining the amount of the consideration given for anything.

3

In this Chapter—

• “the employee”, and

• “employment-related securities”,

• have the meaning indicated in section 421B(8).

4

In this Chapter “associated person” has the meaning indicated in section 421C.