Part 7

Employment income: income and exemptions relating to securities
Chapter 1

Introduction
Application of Chapters 2 to
4A

Exclusions: public offers
421F
1
Chapters 2, 3 and 3C
do not apply in relation to employment-related securities that are shares acquired under the terms of an offer to the public or an interest in shares so acquired.
1A
But subsection (1) does not disapply those Chapters if the main purpose (or one of the main purposes)—
a
of the arrangements under which the right or opportunity under which the shares were acquired, or
b
for which the shares are held,
is the avoidance of tax or national insurance contributions.
2
In a case within subsection (1) of section 544 (exemption for priority share allocations where offer to employees separate from public offer), any acquisition made under the terms of either the public offer or the employee offer within the meaning of that subsection is to be treated for the purposes of this section as made under the terms of an offer to the public.
3
Subsection (2) applies whether or not there is any benefit within section 544(2)
(benefit derived from entitlement to priority allocation exempt from income tax).
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Word in s. 421B cross-heading substituted (with effect in accordance with s. 20(5) of the amending Act) by Finance Act 2005 (c. 7), s. 20(3)(b)
Words in s. 421F(1) substituted (18.6.2004 with application in accordance with s. 89(4)(5) of the amending Act) by Finance Act 2004 (c. 12), s. 89(2)
S. 421F(1A) inserted (18.6.2004 with application in accordance with s. 89(4)(5) of the amending Act) by Finance Act 2004 (c. 12), s. 89(3)
Pt. 7 Ch. 1 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)
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)