[F1476Charge on occurrence of chargeable eventU.K.
[F2(1)If a chargeable event occurs in relation to an employment-related securities option, the taxable amount counts as employment income of the employee for the relevant tax year.
(2)For this purpose—
(a)“chargeable event” has the meaning given by section 477,
(b)“the taxable amount”is the amount determined under section 478, and
(c)“the relevant tax year”is the tax year in which the chargeable event occurs.
(3)Relief under section 481 or 482 (relief for secondary Class 1 contributions or special contribution met by employee) may be available against an amount counting as employment income under this section.]
[F3(5)If the employee has been divested of the employment-related securities option by operation of law—
(a)income tax is charged on the amount determined under section 478, and
(b)the person liable for any tax so charged is the relevant person in relation to the chargeable event (see section 477(7)).]
[F4(5A)An amount charged under subsection (5)(a) is treated for income tax purposes as an amount of income.]
(6)This section is subject to—
section 519 (F5... SAYE option schemes: no charge in respect of exercise of share option by employee),
section 524 (F6... CSOP schemes: no charge in respect of exercise of share option by employee), and
section 530 (enterprise management incentives: no charge on exercise by employee of option to acquire shares at market value).]
Textual Amendments
F1Pt. 7 Ch. 5 substituted (16.4.2003 for specified purposes and otherwise 1.9.2003 with effect in accordance with Sch. 22 para. 10(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 10(1); S.I. 2003/1997, art. 2
F2S. 476(1)-(3) substituted for s. 476(1)-(4) (1.9.2004) by Finance Act 2004 (c. 12), s. 85(2), Sch. 16 para. 3(2); S.I. 2004/1945, art. 2
F3S. 476(5) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 598 (with Sch. 2)
F4S. 476(5A) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 438 (with Sch. 2)
F5Word in s. 476(6) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 134, 146 (with Sch. 8 paras. 147-157)
F6Word in s. 476(6) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 196, 204 (with Sch. 8 paras. 205-215)