[F1Disapplication of Chapters 2 and 3BU.K.
Textual Amendments
F1Pt. 7 Ch. 4A inserted (with effect in accordance with s. 20(5)-(7) of the amending Act) by Finance Act 2005 (c. 7), s. 20(1)
454Deemed election for disapplication of Chapter 2U.K.
(1)If the shares are restricted securities (or the interest in shares is a restricted interest in securities), the employer and the employee are to be treated as making an election under section 431(1) (election for disapplication of Chapter 2) in relation to the shares (or interest in shares).
(2)But the employer and the employee may agree that subsection (1) is not to apply in relation to the shares (or interest in shares).
(3)An agreement under subsection (2) is irrevocable and—
(a)must be made in a form approved by the Board of the Inland Revenue, and
(b)may not be made more than 14 days after the acquisition.
(4)If the employer and the employee make an agreement under subsection (2) in relation to the shares (or interest in shares), subsection (5) applies for the purposes of determining the taxable amount for the purposes of section 426 (charge on occurrence of chargeable event) on the occurrence on any chargeable event in relation to the shares (or interest in shares).
(5)In determining under section 428(3) (amount of charge) what would have been the market value of the shares (or interest in shares) at the time of the acquisition but for any restrictions (IUMV), that market value is to be calculated disregarding the effect on that market value of the intellectual property agreement and any transfer of intellectual property pursuant to it.
455Disapplication of Chapter 3BU.K.
For the purposes of Chapter 3B (securities with artificially enhanced market value) neither the intellectual property agreement nor any transfer of intellectual property pursuant to it are things done otherwise than for genuine commercial purposes.]