Part 7

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

Securities with artificially depressed market value

Other tax charges

Adjustment of market value: conditional interests
446F
1
This section applies where the market value of an employee’s interest in shares which is only conditional is artificially low immediately after a chargeable event relating to the shares under section 427 as originally enacted.
2
The market value of the shares is artificially low where it has been reduced by at least 10% as a result of things done otherwise than for genuine commercial purposes within the period beginning—
a
7 years before the chargeable event, or
b
with 16th April 2003,
whichever is later.
3
There is a chargeable event in relation to shares if section 427 (as originally enacted) applies in relation to them.
4
The reference in the definition of
MV
in section 428(1)
(as originally enacted) to the market value of the employee’s interest is to what would be the market value but for the reduction as a result of the things done as mentioned in subsection (2).
5
Expressions used in this section and in Chapter 2 of this Part as originally enacted have the same meaning in this section as in that Chapter.
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)
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)