Section 554Z3 — Income Tax (Earnings and Pensions) Act 2003: Value of relevant step

Value of relevant step 554Z3 1 If the relevant step involves a sum of money, its value is the amount of the sum.

2 In any other case, the value of the relevant step is—

a the market value when the relevant step is taken of the asset which is the subject of the step, or b if higher, the cost of the relevant step.

3 Subsection (2)(a) is subject to sections 437 and 452.

4 Subsection (2)(b) is to be ignored if—

a the relevant step is within section 554C(1)(c),

and b any of Chapters 2 to 4A of Part 7 apply by virtue of the acquisition.

5 Subsection (2)(b) is also to be ignored if section 554Z7 applies.

6 In subsection (2)(b) the reference to the cost of the relevant step is to the expense incurred in connection with the relevant step (including a proper proportion of any expense relating partly to the relevant step and partly to other matters) by the person or persons at whose cost the relevant step is taken.

7 Subsections (1) and (2) are subject to sections 554Z4, 554Z5, 554Z6, 554Z7 and 554Z8, which, so far as applicable, are to be applied in that order.