Search Legislation

Finance Act 2003

Status:

This is the original version (as it was originally enacted).

Main provisions

9(1)For Chapter 4 of Part 7 substitute—

Chapter 4Post-acquisition benefits from securities

447Charge on other chargeable benefits from securities

(1)This Chapter applies if an associated person receives a benefit by virtue of the ownership of employment-related securities by that person or another associated person.

(2)The taxable amount determined under section 448 counts as employment income of the employee for the relevant tax year.

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

(4)This section does not apply if the benefit is otherwise chargeable to income tax.

(5)This section is subject to section 449 (case outside this Chapter).

448Amount of charge

The taxable amount for the purposes of section 447 (charge on other chargeable benefits) is the amount or market value of the benefit.

449Case 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)a similar benefit is received by the owners of all the company’s shares of the class, and

(c)subsection (2) or (3) is satisfied.

(2)This subsection is satisfied if, immediately before the receipt of the benefit, the company is employee-controlled by virtue of holdings of shares of the class.

(3)This subsection is satisfied if, immediately before the receipt of the benefit, the majority of the company’s shares of the class are not held by or for the benefit of any of the following—

(a)employees of the company,

(b)persons who are related to an employee of the company,

(c)associated companies of the company,

(d)employees of any associated company of the company, or

(e)persons who are related to an employee of any such associated company.

(4)For the purposes of subsection (3) a person is related to an employee if—

(a)the person acquired the shares pursuant to a right or opportunity available by reason of the employee’s employment, or

(b)the person is connected with a person who so acquired the shares or with the employee and acquired the shares otherwise than by or under a disposal made by way of a bargain at arm’s length from the employee or another person who is related to the employee.

450Definitions

(1)In this Chapter—

  • “interest”, in relation to shares, and

  • “shares”,

have the meaning indicated in section 420(8).

(2)In this Chapter “market value” has the meaning indicated in section 421(1).

(3)In this Chapter—

  • “the employee” (except in section 449), and

  • “employment-related securities”,

have the meaning indicated in section 421B(8).

(4)In this Chapter “associated person” has the meaning indicated in section 421C.

(5)In this Chapter—

  • “associated company”, and

  • “employee-controlled”,

have the meaning indicated in section 421H..

(2)Subject to sub-paragraph (3), sub-paragraph (1) has effect on and after 16th April 2003 (so that it applies on and after that date in relation to employment-related securities irrespective of the date of the acquisition).

(3)The provisions of Chapter 4 as originally enacted which are mentioned in sub-paragraph (4)—

(a)continue to apply in relation to shares, and interests in shares, acquired before 16th April 2003, and

(b)apply in relation to shares, and interests in shares, acquired on or after that date until the day appointed under paragraph 3(2).

In this sub-paragraph “shares” means shares in a company or securities as defined in section 254(1) of the Taxes Act 1988 issued by a company.

(4)The provisions are—

  • section 450(1), (2), (3)(a), (4), (5) and (6)(a), and

  • sections 447 to 449, section 451, section 452(1) to (3), section 461(1) and (2), section 462, sections 464 to 466 and sections 468 to 470, so far as relevant for the purposes of those provisions of section 450 (or the other provisions mentioned in this subsection so far as so relevant).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources