C1Part 7F1Employment 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)
F2Chapter 2Restricted securities
Pt. 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
Tax charge on post-acquisition chargeable events
C2431Election for full or partial disapplication of this Chapter
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),
F6aa
determining any amount that is to be treated as earnings from the employment where section 226A applies (employee shareholder shares: amount treated as 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), F4...
d
determining any amount that counts as employment income of the employee under Chapter 5 of this Part (securities acquired pursuant to securities option) F5, and
e
determining any amount that counts as employment income of the employee in respect of the employment under Chapter 2 of Part 7A (employment income provided through third parties)
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 F3the Commissioners for Her Majesty’s Revenue and Customs and
b
may not be made more than 14 days after the acquisition.
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)