Section 446I — Income Tax (Earnings and Pensions) Act 2003: Adjustment of consideration or benefit received

Adjustment of consideration or benefit received 446I 1 This section applies where any consideration or benefit mentioned in—

a section 428(9) (consideration on disposal of restricted securities),

b section 441(4), (5) or (9) (consideration for disposal of convertible securities or release of entitlement to convert or benefit received in respect of entitlement to convert),

c section 446C(4) (securities with artificially depressed market value: MV to be amount of consideration),

d sections 446X and 446Y(3) (consideration for disposal of securities exceeding market value), or e section 448 (securities benefit not otherwise subject to tax), consists (in whole or in part) in the provision of securities or an interest in securities the market value of which is artificially low.

2 The market value of any securities or interest in securities is artificially low where it 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 receipt of the consideration or benefit.

3 The market value of the consideration or benefit consisting in the provision of the securities or interest in securities is for the purposes of the provision or provisions concerned to be taken to be what it would be but for the reduction as a result of the things done as mentioned in subsection (2).