[F1431Election for full or partial disapplication of this ChapterU.K.
(1)The employer and the employee may elect in relation to employment-related securities which are restricted securities or a restricted interest in securities that—
(a)for the relevant tax purposes their market value at the time of the acquisition is to be calculated as if they were not, and
(b)sections 425 to 430 are not to apply to the employment-related securities.
(2)Or the employer and the employee may elect in relation to employment-related securities which are restricted securities or a restricted interest in securities that—
(a)for the relevant tax purposes their market value at the time of the acquisition is to be calculated, and
(b)sections 425 to 430 are to apply to the employment-related securities,
as if any specified restriction did not apply to the employment-related securities.
(3)For the purposes of subsections (1) and (2) “the relevant tax purposes” are—
(a)determining any amount that is to constitute earnings from the employment under Chapter 1 of Part 3 (earnings),
(b)determining the amount of any gain realised on the occurrence of an event that is a chargeable event by virtue of section 439(3)(a) (conversion),
(c)operating Chapter 3C of this Part (acquisition of securities for less than market value), and
(d)determining any amount that counts as employment income of the employee under Chapter 5 of this Part (securities acquired pursuant to securities option).
(4)An election under this section—
(a)is to be made by agreement by the employer and the employee, and
(b)is irrevocable.
(5)Such an agreement—
(a)must be made in a form approved by the Board of Inland Revenue, and
(b)may not be made more than 14 days after the acquisition.]
Textual Amendments
F1Pt. 7 Ch. 2 substituted (1.9.2003 with effect in accordance with Sch. 22 para. 3(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 3(1); S.I. 2003/1997, art. 2