Part 7

Employment income: income and exemptions relating to securities
Chapter 2

Restricted securities

Tax charge on post-acquisition chargeable events

Charge on occurrence of chargeable event
426
1
If a chargeable event occurs in relation to the employment-related securities, the taxable amount counts as employment income of the employee for the relevant tax year.
2
For this purpose—
a
“
chargeable event
” has the meaning given by section 427,
b
“
the taxable amount
”is the amount determined under section 428, and
c
“
the relevant tax year
”is the tax year in which the chargeable event occurs.
3
Relief may be available under section 428A (relief for secondary Class 1 contributions met by employee) against an amount counting as employment income under this section.
5
This section is subject to section 429 (case outside charge under this section).
Pt. 7 Ch. 2 substituted (1.9.2003 with effect in accordance with Sch. 22 para. 3(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 3(1); S.I. 2003/1997, art. 2
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
S. 426(1)-(3) substituted for s. 426(1)-(4) (1.9.2004) by Finance Act 2004 (c. 12), s. 85(2), Sch. 16 para. 1(2); S.I. 2004/1945, art. 2
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)