Section 446L — Income Tax (Earnings and Pensions) Act 2003: Charge on non-commercial increases

Charge on non-commercial increases 446L 1 This section applies in relation to employment-related securities where on a date that is the valuation date in relation to a relevant period IMV is at least 10% greater than MV.

2 The taxable amount determined under subsection (4) counts as employment income of the employee for the relevant tax year (but subject to sections 446M and 446N).

3 The “ relevant tax year ” is the tax year in which the valuation date falls.

4 The taxable amount is— IMV - MV 5 IMV is the market value of the employment-related securities on the valuation date.

6 MV is the amount that would be the market value of the employment-related securities on the valuation date if any non-commercial increases during the relevant period were disregarded.

7 For the purposes of subsections (5) and (6)—

a any restrictions having effect in relation to the employment-related securities on the valuation date, and b any non-commercial reductions during the relevant period, are to be disregarded.