Income Tax (Earnings and Pensions) Act 2003

[F2446LCharge on non-commercial increasesU.K.
This section has no associated Explanatory Notes

(1)This section applies in relation to employment-related securities where on a date that is the valuation date in relation to a relevant period IMV is at least 10% greater than MV.

(2)The taxable amount determined under subsection (4) counts as employment income of the employee for the relevant tax year (but subject to sections 446M and 446N).

(3)The β€œrelevant tax year” is the tax year in which the valuation date falls.

(4)The taxable amount isβ€”

(5)IMV is the market value of the employment-related securities on the valuation date.

(6)MV is the amount that would be the market value of the employment-related securities on the valuation date if any non-commercial increases during the relevant period were disregarded.

(7)For the purposes of subsections (5) and (6)β€”

(a)any restrictions having effect in relation to the employment-related securities on the valuation date, and

(b)any non-commercial reductions during the relevant period,

are to be disregarded.]

Textual Amendments

F2Pt. 7 Ch. 3B inserted (16.4.2003 with effect in accordance with Sch. 22 para. 6(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 6(1)