Section 446C — Income Tax (Earnings and Pensions) Act 2003: Amount of charge

Amount of charge 446C 1 The taxable amount for the purposes of section 446B (charge on acquisition) is— FMV - MV 2 FMV is what would be the market value of the employment-related securities at the time of the acquisition if the things mentioned in section 446B(1) had not been done.

3 MV is the actual market value of the employment-related securities at the time of the acquisition.

4 But where what would be MV is less than the amount of any consideration given for the acquisition of the employment-related securities, MV is the amount of that consideration. 4A Subsection (4B) applies if, prior to the acquisition, the employment-related securities were the subject of a relevant step within the meaning of Part 7A by reason of which Chapter 2 of that Part applied in respect of the employment. 4B If what would be MV in accordance with subsection (3) or (4) (as the case may be) is less than the amount that counted as employment income of the employee in respect of the employment under Chapter 2 of Part 7A, MV is the amount of that employment income instead of the amount determined in accordance with subsection (3) or (4).

5 This section is subject to section 446D (restricted securities and convertible securities).