Part 7

Employment income: income and exemptions relating to securities
Chapter 9

Enterprise management incentives

Other income tax consequences

Effects on other income tax charges
541
1
Nothing in the EMI code affects—
a
the operation of Chapters 2 to 4 of this Part in relation to shares acquired under a qualifying option, or
b
the operation of Chapter 5 of this Part otherwise than in relation to the acquisition of shares under a qualifying option.
2
But in calculating the taxable amount for the purposes of section 426 (post-acquisition charge on restricted securities) in respect of shares acquired under a qualifying option, the amount of relief on the exercise of the option is to be regarded as a deductible amount for the purposes of section 428 (amount of charge).
3
“The amount of relief on the exercise of the option” means the difference between—
a
the amount that would have counted as employment income by virtue of section 476 in respect of the exercise of the option apart from the EMI code, and
b
the amount (if any) that in fact counts as such income in accordance with the EMI code.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
S. 541(1)(2) substituted (1.9.2003 with effect in accordance with Sch. 22 para. 41(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 41(1); S.I. 2003/1997, 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)