Section 431B | Securities acquired for purpose of avoidance

From legislation.gov.uk

Where employment-related securities are restricted securities or a restricted interest in securities, the employer and the employee are to be treated as making an election under section 431(1) in relation to the employment-related securities if^F1F2

(a)the main purpose (or one of the main purposes) of the arrangements under which the right or opportunity to acquire the employment-related securities is made available is the avoidance of tax or national insurance contributions , and^F1F2F3F4

(b)at the time of the acquisition, the earnings from the employment are (or would be if there were any) general earnings to which any of the charging provisions of Chapters 4 and 5 of Part 2 applies.^F1F2F5

Notes

F1
Pt. 7 Ch. 2 substituted (1.9.2003 with effect in accordance with Sch. 22 para. 3(2)-(4) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 3(1); S.I. 2003/1997, art. 2
F2
S. 431B inserted (with effect in accordance with Sch. 2 para. 7(2) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 2 para. 7(1)
F3
Words in s. 431B renumbered as s. 431B(a) (6.4.2015) by The Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015 (S.I. 2015/360), regs. 1(2), 2(a)
F4
Word in s. 431B(a) inserted (6.4.2015) by The Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015 (S.I. 2015/360), regs. 1(2), 2(b)
F5
S. 431B(b) inserted (6.4.2015) by The Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015 (S.I. 2015/360), regs. 1(2), 2(b)