Section 477 — Finance Act 2003: Chargeable events

Chargeable events 477 1 This section applies for the purposes of section 476 (charge on occurrence of chargeable event).

2 Any of the events mentioned in subsection (3) is a “ chargeable event ” in relation to the employment-related securities option unless it occurs on or after the death of the employee.

3 The events are—

a the acquisition of securities pursuant to the employment-related securities option by an associated person, b the assignment for consideration of the employment-related securities option by an associated person otherwise than to another associated person or the release for consideration of the employment-related securities option by an associated person, or c the receipt by an associated person of a benefit in money or money’s worth in connection with the employment-related securities option (other than securities acquired pursuant to the employment-related securities option or consideration for its assignment or release).

4 For the purposes of subsection (3)(a) securities are acquired at the time when a beneficial interest is acquired (and not, if different, the time when the securities are conveyed or transferred).

5 A benefit received on account of any disability (within the meaning of the Disability Discrimination Act 1995) of the employee is to be disregarded for the purposes of subsection (3)(c).

6 A benefit in money or money’s worth received in consideration for or otherwise in connection with—

a failing or undertaking not to acquire securities pursuant to the employment-related securities option, or b granting or undertaking to grant to another person a right to acquire securities which are subject to the employment-related securities option or any interest in them, is to be regarded for the purposes of subsection (3)(c) as received in connection with the employment-related securities option.

7 For the purposes of section 476(5) (charge under Case VI of Schedule D) the relevant person in relation to a chargeable event is—

a in the case of an event that is a chargeable event by virtue of subsection (3)(a), the person by whom the securities are acquired, and b in the case of an event that is a chargeable event by virtue of subsection (3)(b) or (c), the person by whom the consideration or benefit is received.