{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-531",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-531.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "section/531",
  "kind": "section",
  "number": "531",
  "heading": "Limitation of charge on exercise of option to acquire shares below market value",
  "text": "(1) This section applies if the option is to acquire shares at less than their market value—\n(a) at the time when the option is granted, or\n(b) if it is a replacement option, at the time when the original option was granted,\nor at nil cost.\n(2) If this section applies, the section 476 gain is—\nCMV-(ACO+ACS)where—\nCMV is the chargeable market value,\nACO is the amount or value of the consideration given for the grant of the option, and\nACS is the amount, if any, for which the shares are acquired.\n(3) “The chargeable market value” means—\n(a) the market value of the shares—\n(i) at the time when the option was granted, or\n(ii) if it is a replacement option, at the time when the original option was granted, or\n(b) the market value of the shares at the time when the option is exercised,\nwhichever is lower.\n(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(4) In this section “the section 476 gain” means the amount under section 478 (amount of charge under section 476) is to be regarded as the taxable amount for the purposes of section 476 in respect of the acquisition of the shares pursuant to the option.\n(5) This section has effect subject to section 532 (modified tax consequences following disqualifying events).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 531(4) substituted (1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 37(1)(2); S.I. 2003/1997, art. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/531",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}