Section 541 — Income Tax (Earnings and Pensions) Act 2003: Effects on other income tax charges

Effects on other income tax charges 541 1 Nothing in the EMI code affects—

a the operation of Chapters 2 to 4 of this Part in relation to shares acquired under a qualifying option, or b the operation of Chapter 5 of this Part otherwise than in relation to the acquisition of shares under a qualifying option.

2 But in calculating the taxable amount for the purposes of section 426 (post-acquisition charge on restricted securities) in respect of shares acquired under a qualifying option, the amount of relief on the exercise of the option is to be regarded as a deductible amount for the purposes of section 428 (amount of charge). 3 “ The amount of relief on the exercise of the option ” means the difference between—

a the amount that would have counted as employment income by virtue of section 476 in respect of the exercise of the option apart from the EMI code, and b the amount (if any) that in fact counts as such income in accordance with the EMI code.