Finance Act 2003
Sections and provisions with full text and the judgments that cite each one.
Section 421H — Meaning of “employee-controlled” etc
Meaning of “employee-controlled” etc 421H 1 For the purposes of Chapters 2 to 4 a company is “ employee-controlled ” by virtue of shares of a class if— a the majority of the company’s shares of that…
Section 421I — Consideration for acquisition of employment-related securities
Consideration for acquisition of employment-related securities 421I 1 This section applies for determining for the purposes of Chapters 2 to 3A the amount of the consideration given for the…
Section 421J — Duty to provide information
Duty to provide information 421J 1 This section applies in relation to reportable events. 2 Section 421K explains what are reportable events for the purposes of this section. 3 Each person who is a…
Section 421K — Reportable events
Reportable events 421K 1 This section applies for the purposes of section 421J (duty to provide information). 2 Each of the events mentioned in subsection (3) is a reportable event. 3 The events are—…
Section 421L — Persons to whom section 421J applies
Persons to whom section 421J applies 421L 1 This section applies for the purposes of section 421J (duty to provide information). 2 Each of the following persons is a responsible person in relation to…
Section 422 — Application of this Chapter
Application of this Chapter 422 This Chapter applies to employment-related securities if they are— a restricted securities, or b a restricted interest in securities, at the time of the acquisition.
Section 423 — “ Restricted securities ” and “ restricted interest in securities ”
“ Restricted securities ” and “ restricted interest in securities ” 423 1 For the purposes of this Chapter employment-related securities are restricted securities or a restricted interest in…
Section 424 — Exceptions
Exceptions 424 Employment-related securities are not restricted securities or a restricted interest in securities by reason only that any one or more of the following is the case— a the…
Section 425 — No charge in respect of acquisition in certain cases
No charge in respect of acquisition in certain cases 425 1 Subsection (2) applies if the employment-related securities— a are restricted securities, or a restricted interest in securities, by virtue…
Section 426 — Charge on occurrence of chargeable event
Charge on occurrence of chargeable event 426 1 This section applies if a chargeable event occurs in relation to the employment-related securities. 2 The taxable amount determined under section 428…
Section 427 — Chargeable events
Chargeable events 427 1 This section applies for the purposes of section 426 (charge on occurrence of chargeable event). 2 Any of the events mentioned in subsection (3) is a “ chargeable event ” in…
Section 428 — Amount of charge
Amount of charge 428 1 The taxable amount for the purposes of section 426 (charge on occurrence of chargeable event) is— UMV × ( IUP - PCP - OP ) - CE 2 UMV is what would be the market value of the…
Section 429 — Case outside charge under section 426
Case outside charge under section 426 429 1 Section 426 (charge on occurrence of chargeable event) does not apply if— a the employment-related securities are shares (or an interest in shares) in a…
Section 430 — Election for outstanding restrictions to be ignored
Election for outstanding restrictions to be ignored 430 1 The employer and the employee may elect that— a on a chargeable event the taxable amount for the purposes of section 426 is to be determined…
Section 431 — Election for full or partial disapplication of this Chapter
Election for full or partial disapplication of this Chapter 431 1 The employer and the employee may elect in relation to employment-related securities which are restricted securities or a restricted…
Section 432 — Definitions
Definitions 432 1 In this Chapter— “ interest ”, in relation to securities, “ securities ”, “ securities option ”, and “ shares ”, have the meaning indicated in section 420. 2 In this Chapter “…
Section 435 — Application of this Chapter
Application of this Chapter 435 This Chapter applies to employment-related securities if they are— a convertible securities, or b an interest in convertible securities, at the time of the acquisition.
Section 436 — “ Convertible securities ”
“ Convertible securities ” 436 For the purposes of this Chapter securities are convertible securities if— a they confer on the holder an immediate or conditional entitlement to convert them into…
Section 437 — Adjustment of charge
Adjustment of charge 437 For the purposes of— a any liability to tax under Chapter 1 of Part 3 (earnings), Chapter 10 of Part 3 (taxable benefits: residual liability to charge) or Chapter 5 of this…
Section 438 — Charge on occurrence of chargeable event
Charge on occurrence of chargeable event 438 1 This section applies if a chargeable event occurs in relation to the employment-related securities. 2 The taxable amount determined under section 440…
Section 439 — Chargeable events
Chargeable events 439 1 This section applies for the purposes of section 438 (charge on occurrence of chargeable event). 2 Any of the events mentioned in subsection (3) is a “ chargeable event ” in…
Section 440 — Amount of charge
Amount of charge 440 1 The taxable amount for the purposes of section 438 (charge on occurrence of chargeable event) is— AG - CE 2 AG is the amount of any gain realised on the occurrence of the…
Section 441 — Amount of gain realised on occurrence of chargeable event
Amount of gain realised on occurrence of chargeable event 441 1 This section applies for the purposes of section 440 (amount of charge on occurrence of chargeable event). 2 The amount of the gain…
Section 442 — Amount of consideration given for entitlement to convert
Amount of consideration given for entitlement to convert 442 1 This section applies for the purposes of section 440 (amount of charge on occurrence of chargeable event). 2 Consideration is to be…
Section 443 — Case outside charge under section 438
Case outside charge under section 438 443 1 Section 438 (charge on occurrence of chargeable event) does not apply if— a the employment-related securities are shares (or an interest in shares) in a…
Section 444 — Definitions
Definitions 444 1 In this Chapter— “ interest ”, in relation to securities, “ securities ”, and “ shares ”, have the meaning indicated in section 420. 2 In this Chapter “ market value ” has the…
Section 446A — Application of this Chapter
Application of this Chapter 446A 1 This Chapter applies in certain cases where the market value of employment-related securities (or other relevant securities or interests in securities) is reduced…
Section 446B — Charge on acquisition
Charge on acquisition 446B 1 This section applies where the market value of employment-related securities at the time of the acquisition has been reduced by at least 10% as a result of things done…
Section 446C — Amount of charge
Amount of charge 446C 1 The taxable amount for the purposes of section 446B (charge on acquisition) is— FMV - MV 2 FMV is what would be the market value of the employment-related securities at the…
Section 446D — Restricted securities and convertible securities
Restricted securities and convertible securities 446D 1 Where the employment-related securities are restricted securities or a restricted interest in securities, FMV (but not MV) is to be determined…
Section 446E — Charge on restricted securities
Charge on restricted securities 446E 1 This section applies where the market value of employment-related securities which are restricted securities or a restricted interest in securities is…
Section 446F — Adjustment of market value: conditional interests
Adjustment of market value: conditional interests 446F 1 This section applies where the market value of an employee’s interest in shares which is only conditional is artificially low immediately…
Section 446G — Adjustment of market value: consideration for entitlement to convert
Adjustment of market value: consideration for entitlement to convert 446G 1 This section applies where the market value of employment-related securities which are convertible securities or an…
Section 446H — Adjustment of market value: charge on conversion
Adjustment of market value: charge on conversion 446H 1 This section applies where the market value of securities (“ the converted securities ”) into which employment-related securities (or…
Section 446I — 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 446J — Definitions
Definitions 446J 1 In this Chapter— “ interest ”, in relation to securities, and “ securities ”, have the meaning indicated in section 420. 2 In this Chapter “ market value ” has the meaning…
Section 446K — Application of this Chapter
Application of this Chapter 446K 1 This Chapter applies in certain cases where the market value of employment-related securities is increased by things done otherwise than for genuine commercial…
Section 446L — 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…
Section 446M — Securities subject to restriction on valuation date
Securities subject to restriction on valuation date 446M 1 This section applies where on the valuation date the employment-related securities are relevant restricted securities. 2 The amount…
Section 446N — Securities subject to restriction during relevant period
Securities subject to restriction during relevant period 446N 1 This section applies where the employment-related securities have been restricted securities or a restricted interest in securities at…
Section 446O — “Relevant period” and “valuation date”
“Relevant period” and “valuation date” 446O 1 This section explains what is meant by “ relevant period ” and “ valuation date ” in this Chapter. 2 The first relevant period in relation to…
Section 446P — Definitions
Definitions 446P 1 In this Chapter “ interest ”, in relation to securities, has the meaning indicated in section 420. 2 In this Chapter “ market value ” has the meaning indicated in section 421(1). 3…
Section 446Q — Application of this Chapter
Application of this Chapter 446Q 1 This Chapter applies if— a no payment is made for employment-related securities at or before the time of the acquisition, or b the payment made for…
Section 446R — Case outside this Chapter
Case outside this Chapter 446R 1 This Chapter does not apply if— a the employment-related securities are shares (or an interest in shares) in a company of a class, b all the company’s shares of the…
Section 446S — Notional loan
Notional loan 446S 1 Where this Chapter applies an interest-free loan (“ the notional loan ”) is to be treated as having been made to the employee by the employer at the time of the acquisition. 2…
Section 446T — Amount of notional loan
Amount of notional loan 446T 1 The amount of the notional loan initially outstanding is— MV - DA where— MV is the market value of the employment-related securities at the time of the acquisition, and…
Section 446U — Discharge of notional loan
Discharge of notional loan 446U 1 The notional loan is treated as discharged when— a the employment-related securities are disposed of otherwise than to an associated person, or b if the…
Section 446V — Chapter to be additional to other income tax charges
Chapter to be additional to other income tax charges 446V This Chapter does not affect any liability to income tax arising in respect of the acquisition under— a Chapter 1 of Part 3 (earnings), b…
Section 446W — Definitions
Definitions 446W 1 In this Chapter— “ interest ”, in relation to securities, “ securities ”, “ securities option ”, and “ shares ”, have the meaning indicated in section 420. 2 In this Chapter “…
Section 446X — Application of this Chapter
Application of this Chapter 446X This Chapter applies if— a employment-related securities are disposed of by an associated person so that no associated person is any longer beneficially entitled to…