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Income Tax (Earnings and Pensions) Act 2003

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Changes over time for: Section 526

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Point in time view as at 22/07/2020.

Changes to legislation:

Income Tax (Earnings and Pensions) Act 2003, Section 526 is up to date with all changes known to be in force on or before 06 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

526Charge where option granted at a discountU.K.
This section has no associated Explanatory Notes

(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)[F1Section 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.

Textual Amendments

F1Words in s. 526(4) substituted (with effect in accordance with Sch. 22 para. 35(2) of the amending Act, otherwise 1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 35(1); S.I. 2003/1997, art. 2

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