C1Part 7F1Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Chapter 8F3... CSOP schemes
Word in Pt. 7 Ch. 8 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 159, 204 (with Sch. 8 paras. 205-215)
Tax charge
526Charge where option granted at a discount
1
This section applies if, at the time when the share option is granted to the individual, the aggregate of—
a
the amount or value of any consideration given by the individual for the grant of the option, and
b
the amount payable by the individual, on exercising the option, in order to acquire the maximum number of shares that may be acquired under it,
is less than the market value of the same quantity of issued shares of the same class.
2
The amount of the difference counts as employment income of the individual for the relevant tax year.
3
The “relevant tax year” is the tax year in which the option is granted to the individual.
4
F2Section 480(4) (gain realised on acquisition of securities pursuant to option etc) provides for a deduction to be made to take account of amounts that count as employment income under this section.
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)