Section 473 Introduction to taxation of securities optionsF1

United Kingdom

(1)

The starting-point is that section 475 contains an exemption from the liability to tax that might otherwise arise under—

(a)

Chapter 1 of Part 3 (earnings), or

(b)

Chapter 10 of that Part (taxable benefits: residual liability to charge),

when an employment-related securities option is acquired.

(2)

Liability to tax may arise, when securities are acquired pursuant to the employment-related securities option, under—

(a)

section 446B (charge on acquisition where market value of securities or interest artificially depressed),

(b)

Chapter 3C of this Part (acquisition of securities for less than market value), or

(c)

section 476 (acquisition of securities pursuant to securities option).

(3)

Liability to tax may also arise by virtue of section 476 when—

(a)

the employment-related securities option is assigned or released, or

(b)

a benefit is received in connection with the employment-related securities option.

(4)

There are special rules relating to share options acquired under—

(a)

F2Schedule 3 SAYE option schemes (see Chapter 7 of this Part),

(b)

F3Schedule 4 CSOP schemes (see Chapter 8 of this Part), or

(c)

enterprise management incentives (see Chapter 9 of this Part).

Annotations

F1: Pt. 7 Ch. 5 substituted (16.4.2003 for specified purposes and otherwise 1.9.2003 with effect in accordance with Sch. 22 para. 10(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 10(1); S.I. 2003/1997, art. 2
F2: Words in s. 473(4)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 133, 146 (with Sch. 8 paras. 147-157)
F3: Words in s. 473(4)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 194, 204 (with Sch. 8 paras. 205-215)

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)

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