Part 7Employment income: income and exemptions relating to securities
F1Chapter 3BSecurities with artificially enhanced market value
Charge on non-commercial increases
446MSecurities subject to restriction on valuation date
(1)
This section applies where on the valuation date the employment-related securities are relevant restricted securities.
(2)
The amount determined under section 446L(4) is to be multiplied by CP.
(3)
CP is—
where OP is the amount that would be determined under section 428(5) (amount of charge on chargeable event in relation to restricted securities) on the valuation date if there were on that date a chargeable event (resulting in no tax charge).
(4)
For the purposes of this section the employment-related securities are relevant restricted securities if they are restricted securities or a restricted interest in securities but are not subject to—
(a)
an election under section 430 (election to ignore outstanding restrictions) in relation to a chargeable event which occurred before the valuation date, or
(b)
an election under section 431(1) (election to treat securities as not subject to restrictions).
(5)
If sections 425 to 430 apply to the employment-related securities in accordance with section 431(2) (election to treat securities as not subject to specified restrictions), the reference in subsection (3) to the amount that would be determined under section 428(5) is to the amount that would be so determined in accordance with section 431(2).