Part 7

Employment income: income and exemptions relating to securities
Chapter 3A

Securities with artificially depressed market value

Tax charge on acquisition

Charge on acquisition
446B
1
This section applies where the market value of employment-related securities at the time of the acquisition has been reduced by at least 10% as a result of things done otherwise than for genuine commercial purposes within the period of 7 years ending with the acquisition.
2
The taxable amount determined under section 446C counts as employment income of the employee for the tax year in which the acquisition occurs.
3
But this section does not apply if section 425(2)
(no charge on acquisition of certain restricted securities or restricted interests in securities) applies in relation to the employment-related securities.
4
This section does not affect any liability to income tax arising in respect of the acquisition of the employment-related securities under—
a
Chapter 1 of Part 3 (earnings),
b
Chapter 10 of Part 3 (taxable benefits: residual liability to charge),
ba
section 226A (employee shareholder shares: amount treated as earnings),
c
Chapter 3 of this Part (acquisition by conversion),
d
Chapter 3C of this Part (acquisition for less than market value), ...
e
Chapter 5 of this Part (acquisition pursuant to securities option)
, or
f
Chapter 2 of Part 7A (employment income provided through third parties)
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Pt. 7 Ch. 3A inserted (16.4.2003 with effect in accordance with Sch. 22 para. 5(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 5(1)
Word in s. 446B(4) omitted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 2 para. 19(a)
S. 446B(4)(ba) inserted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 8, 38; S.I. 2013/1755, 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)
S. 446B(4)(f) and word inserted (with effect in accordance with Sch. 2 paras. 52-59 of the amending Act) by Finance Act 2011 (c. 11), Sch. 2 para. 19(b)