C1Part 7F5Employment 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)
F2Chapter 3CSecurities acquired for less than market value
Pt. 7 Ch. 3C inserted (with effect in accordance with Sch. 22 para. 7(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 7(1)
446RCase outside this Chapter
1
This Chapter does not apply if—
a
the employment-related securities are shares (or an interest in shares) in a company of a class,
b
all the company’s shares of the class are acquired either for no payment or for a payment less than their market value,
F6ba
subsection (1A) is satisfied, and
c
subsection (3) or (4) is satisfied.
F31A
This subsection is satisfied unless something which affects the employment-related securities has been done (at or before the time of the acquisition) as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax or national insurance contributions.
2
Where the company’s shares of the class are not fully paid up, the reference in subsection (1) to their market value is to what it would be if they were fully paid up.
3
This subsection is satisfied if, at the time of the acquisition of the employment-related securities, the company is employee-controlled by virtue of holdings of shares of the class.
4
This subsection is satisfied if, at that time, the majority of the company’s shares of the class are not F4employment-related securities.
F15
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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)