Income Tax (Earnings and Pensions) Act 2003

701 Meaning of “asset” U.K.

(1) In this Chapter “asset” includes any property and in particular any investment of a kind specified in Part 3 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544).

This is subject to subsection (2).

(2) In this Chapter “asset” does not include—

(a) any payment actually made of, or on account of, PAYE income;

(b) F1 ... any cash voucher, non-cash voucher or credit-token;

(c) the following—

(i) any shares acquired by the employee (whether or not as a result of the exercise of a right to acquire shares) under a scheme approved under Schedule 3 (approved SAYE option schemes) F2 ..., or Schedule 9 to ICTA (approved profit sharing schemes),

[F3 (ia) any shares acquired by the employee [F4 under a scheme approved under Schedule 4 (approved CSOP schemes) in circumstances in which Condition A or B as set out in section 524(2) or (2A) is met;]]

F5 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) any shares acquired by the employee as the result of the exercise of a right over shares obtained before 27th November 1996 [F6 where the avoidance of tax or national insurance contributions is not the main purpose (or one of the main purposes) of any arrangements under which the right was obtained or is exercised],

if the shares in question form part of the ordinary share capital of a company falling within subsection (3); or

(d) any description of property for the time being excluded from the scope of this section by PAYE regulations.

(3) A company falls within this subsection if it—

(a) is the employer (“the employer company”);

(b) has control of the employer company; or

(c) either is, or has control of, a company which is a member of a consortium owning either the employer company or a company having control of the employer company.

[F7 (3A) Paragraph (c) of subsection (2) does not apply to shares after their acquisition as mentioned in that paragraph.]

(4) In this section “share” includes stock.

(5) For the purposes of this section a company is a member of a consortium owning another company if it is one of a number of companies which between them beneficially own not less than 75% of the other company’s ordinary share capital and each of which beneficially owns not less than 5% of that capital.

Textual Amendments

F1 Words in s. 701(2)(b) repealed (1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 14(1), Sch. 43 Pt. 3(4); S.I. 2003/1997, art. 2

F2 Words in s. 701(2)(c)(i) repealed (with effect in accordance with Sch. 21 para. 18(5) of the amending Act) by Finance Act 2003 (c. 14), Sch. 21 para. 18(2), Sch. 43 Pt. 3(3)

F3 S. 701(2)(c)(ia) inserted (with effect in accordance with Sch. 21 para. 18(5) of the amending Act) by Finance Act 2003 (c. 14), Sch. 21 para. 18(3)

F4 Words in s. 701(2)(c)(ia) substituted (18.6.2004 with effect in accordance with s. 88(11)-(13) of the amending Act) by Finance Act 2004 (c. 12), s. 88(9)(a)

F5 S. 701(2)(c)(ii) repealed (18.6.2004 with effect in accordance with s. 88(11)-(13) of the amending Act) by Finance Act 2004 (c. 12), s. 88(9)(b), Sch. 42 Pt. 2(11)

F6 Words in s. 701(2)(c)(iii) inserted (18.6.2004 with effect in accordance with s. 88(11)-(13) of the amending Act) by Finance Act 2004 (c. 12), s. 88(9)(c)

F7 S. 701(3A) inserted (18.6.2004 with effect in accordance with s. 88(11)-(13) of the amending Act) by Finance Act 2004 (c. 12), s. 88(10)