Income Tax (Earnings and Pensions) Act 2003

457 Charge on other chargeable benefits from shares

(1) This section applies if a person within subsection (2) receives a chargeable benefit by virtue of that person’s ownership of or interest in the shares.

(2) The persons within this subsection are—

(a) the employee;

(b) the person referred to as “A” in section 447(5) (shares acquired by connected person), in a case where that provision applies in relation to the shares;

(c) any other person, in a case where the employee is for the time being treated as continuing to have a beneficial interest in the shares by virtue of section 463 (disposals of shares to connected persons etc. ignored).

(3) The taxable amount determined under section 459 counts as employment income of the employee for the relevant tax year.

(4) The “relevant tax year” is the tax year in which the benefit is received.

(5) Section 458 explains what are chargeable benefits for the purposes of this section.

(6) This section—

(a) does not apply if the benefit is otherwise chargeable to income tax, and

(b) is subject to section 460 (cases outside charge under this section).