Section 446B — Income Tax (Earnings and Pensions) Act 2003: Charge on acquisition

Charge on acquisition 446B 1 This section applies where the market value of employment-related securities at the time of the acquisition has been reduced by at least 10% as a result of things done otherwise than for genuine commercial purposes within the period of 7 years ending with the acquisition.

2 The taxable amount determined under section 446C counts as employment income of the employee for the tax year in which the acquisition occurs.

3 But this section does not apply if section 425(2) (no charge on acquisition of certain restricted securities or restricted interests in securities) applies in relation to the employment-related securities.

4 This section does not affect any liability to income tax arising in respect of the acquisition of the employment-related securities under—

a Chapter 1 of Part 3 (earnings),

b Chapter 10 of Part 3 (taxable benefits: residual liability to charge),

ba section 226A (employee shareholder shares: amount treated as earnings),

c Chapter 3 of this Part (acquisition by conversion),

d Chapter 3C of this Part (acquisition for less than market value), ... e Chapter 5 of this Part (acquisition pursuant to securities option) , or f Chapter 2 of Part 7A (employment income provided through third parties)