Section 446L | Charge on non-commercial increases ^F1

(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 10% greater than MV.^F1

(2)The taxable amount determined under subsection (4) counts as employment income of the employee for the relevant tax year (but subject to sections 446M and 446N).^F1

(3)The “relevant tax year” is the tax year in which the valuation date falls.^F1

(4)The taxable amount is—^F1

(5)IMV is the market value of the employment-related securities on the valuation date.^F1

(6)MV is the amount that would be the market value of the employment-related securities on the valuation date if any non-commercial increases during the relevant period were disregarded.^F1

(7)For the purposes of subsections (5) and (6)—^F1

(a)any restrictions having effect in relation to the employment-related securities on the valuation date, and^F1

(b)any non-commercial reductions during the relevant period,^F1

are to be disregarded.