Section 476 — Income Tax (Earnings and Pensions) Act 2003: Charge on occurrence of chargeable event

Charge on occurrence of chargeable event 476 1 If a chargeable event occurs in relation to an employment-related securities option, the taxable amount counts as employment income of the employee for the relevant tax year.

2 For this purpose—

a “ chargeable event ” has the meaning given by section 477, b “ the taxable amount ”is the amount determined under section 478, and c “ the relevant tax year ”is the tax year in which the chargeable event occurs.

3 Relief under section 481 or 482 (relief for secondary Class 1 contributions or special contribution met by employee) may be available against an amount counting as employment income under this section.

5 If the employee has been divested of the employment-related securities option by operation of law—

a income tax is charged on the amount determined under section 478, and b the person liable for any tax so charged is the relevant person in relation to the chargeable event (see section 477(7)). 5A An amount charged under subsection (5)(a) is treated for income tax purposes as an amount of income.

6 This section is subject to— section 519 ( ... SAYE option schemes: no charge in respect of exercise of share option by employee), section 524 ( ... CSOP schemes: no charge in respect of exercise of share option by employee), and section 530 (enterprise management incentives: no charge on exercise by employee of option to acquire shares at market value).