Section 476 — Finance Act 2003: Charge on occurrence of chargeable event

Charge on occurrence of chargeable event 476 1 This section applies if a chargeable event occurs in relation to an employment-related securities option.

2 The taxable amount determined under section 478 counts as employment income of the employee for the relevant tax year (but subject to subsection (5)).

3 The “ relevant tax year ” is the tax year in which the chargeable event occurs.

4 Section 477 explains what are chargeable events for the purposes of this section.

5 If the employee has been divested of the employment-related securities option by operation of law, the person who is the relevant person in relation to the chargeable event (see section 477(7)) is chargeable to tax under Case VI of Schedule D on the amount determined under section 478.

6 This section is subject to— section 519 (approved SAYE option schemes: no charge in respect of exercise of share option by employee), section 524 (approved CSOP schemes: no charge in respect of exercise of share option by employee), and section 530 (enterprise management incentives: no charge on exercise by employee of option to acquire shares at market value).