[F1446BCharge on acquisitionU.K.
(1)This section applies where the market value of employment-related securities at the time of the acquisition has been reduced by at least 10% as a result of things done otherwise than for genuine commercial purposes within the period of 7 years ending with the acquisition.
(2)The taxable amount determined under section 446C counts as employment income of the employee for the tax year in which the acquisition occurs.
(3)But this section does not apply if section 425(2) (no charge on acquisition of certain restricted securities or restricted interests in securities) applies in relation to the employment-related securities.
(4)This section does not affect any liability to income tax arising in respect of the acquisition of the employment-related securities under—
(a)Chapter 1 of Part 3 (earnings),
(b)Chapter 10 of Part 3 (taxable benefits: residual liability to charge),
(c)Chapter 3 of this Part (acquisition by conversion),
(d)Chapter 3C of this Part (acquisition for less than market value), or
(e)Chapter 5 of this Part (acquisition pursuant to securities option).]
Textual Amendments
F1Pt. 7 Ch. 3A inserted (16.4.2003 with effect in accordance with Sch. 22 para. 5(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 5(1)