Section 442 Amount of consideration given for entitlement to convertF1

(1)

This section applies for the purposes of section 440 (amount of charge on occurrence of chargeable event).

(2)

Consideration is to be regarded as given for the entitlement to convert the employment-related securities (or the securities in which they are an interest) if (and only if) ACS exceeds NCMV.

(3)

The amount of the consideration to be regarded as so given is the amount of the excess.

(4)

ACS is the amount of the consideration given for the acquisition of the employment-related securities.

(5)

NCMV is the market value of the employment-related securities at the time of the acquisition, determined as if they were not convertible securities or an interest in convertible securities.

Annotations

Textual amendments

F1: Pt. 7 Ch. 3 substituted (1.9.2003 with effect in accordance with Sch. 22 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 4(1); S.I. 2003/1997, art. 2

Notes on Part 7

Textual amendments

F1: 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)

Modifications

C1: Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)