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Income Tax (Earnings and Pensions) Act 2003

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Changes over time for: Section 421D

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Point in time view as at 01/04/2024.

Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Section 421D is up to date with all changes known to be in force on or before 17 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F1421DReplacement and additional securities and changes in interestsU.K.
This section has no associated Explanatory Notes

(1)Subsections (2) and (3) apply where an associated person is entitled to employment-related securities (the “original securities”) and either—

(a)as a result of the conversion of the original securities (or the securities in which they are an interest), or of any other transaction or series of transactions, that person ceases to be entitled to the original securities but that person or another associated person acquires securities or an interest in securities (the “replacement securities”), or

(b)by virtue of that person being entitled to the original securities, that person or another associated person acquires other securities or an interest in other securities (the “additional securities”).

(2)The replacement securities or the additional securities are to be regarded for the purposes of section 421B(1) (securities acquired pursuant to a right or opportunity available by reason of an employment) as acquired pursuant to the same right or opportunity as the original securities.

(3)Where the market value of the original securities is reduced by reason of the issue of, or of securities including, the replacement securities or the additional securities (or the securities in which they are an interest), the amount of that reduction is to be treated for the purposes of Chapters 2 and 3 as consideration or additional consideration given for the acquisition of the replacement securities or the additional securities [F2and for the purposes of Chapter 3C as a payment made for their acquisition at or before the time of the acquisition].

(4)Subsections (2) and (3) apply whether or not the replacement securities, or the additional securities, were acquired for consideration [F3or a payment was made for their acquisition at or before the time of the acquisition].

(5)Where Chapters 2 to [F44A] apply to an interest in securities, an increase of that interest is to be treated for the purposes of section 421B(1) (securities acquired pursuant to a right or opportunity available by reason of an employment) as a separate interest acquired pursuant to the same right or opportunity as the original interest.

(6)Where Chapters 2 to [F54A] apply to an interest in securities, a reduction of that interest (otherwise than by a disposal to an associated person) is to be treated for the purposes of those Chapters as the disposal otherwise than to an associated person of a separate interest proportionate to the reduction.]

Textual Amendments

F1Pt. 7 Ch. 1 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)

F2Words in s. 421D(3) inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 9 para. 35(2)

F3Words in s. 421D(4) inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 9 para. 35(3)

F4Word in s. 421D(5) substituted (with effect in accordance with s. 20(5) of the amending Act) by Finance Act 2005 (c. 7), s. 20(3)(c)

F5Word in s. 421D(6) substituted (with effect in accordance with s. 20(5) of the amending Act) by Finance Act 2005 (c. 7), s. 20(3)(c)

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