Part 7Employment income: income and exemptions relating to securities

F1Chapter 3BSecurities with artificially enhanced market value

Charge on non-commercial increases

F2446NADisapplication of exceptions from charges

(1)

None of the provisions specified in subsection (2) (exceptions from charges for certain company shares) apply in relation to employment-related securities if the market value of the employment-related securities at the time of the acquisition has been increased by at least 10% by non-commercial increases within the period of 7 years ending with the acquisition.

(2)

The provisions are—

(a)

section 429 (restricted securities),

(b)

section 443 (convertible securities),

(c)

section 446R (securities acquired for less than market value), and

(d)

section 449 (post-acquisition benefits from securities).

(3)

If section 446L (market value on valuation date increased by more than 10% by non-commercial increases during relevant period) applies in relation to employment-related securities, section 429 does not subsequently apply in relation to the employment-related securities.