Section 473 | Introduction to taxation of securities options ^F1

(1)The starting-point is that section 475 contains an exemption from the liability to tax that might otherwise arise under—^F1

(a)Chapter 1 of Part 3 (earnings), or^F1

(b)Chapter 10 of that Part (taxable benefits: residual liability to charge),^F1

when an employment-related securities option is acquired.

(2)Liability to tax may arise, when securities are acquired pursuant to the employment-related securities option, under—^F1

(a)section 446B (charge on acquisition where market value of securities or interest artificially depressed),^F1

(b)Chapter 3C of this Part (acquisition of securities for less than market value), or^F1

(c)section 476 (acquisition of securities pursuant to securities option).^F1

(3)Liability to tax may also arise by virtue of section 476 when—^F1

(a)the employment-related securities option is assigned or released, or^F1

(b)a benefit is received in connection with the employment-related securities option.^F1

(4)There are special rules relating to share options acquired under—^F1

(a)Schedule 3 SAYE option schemes (see Chapter 7 of this Part),^F1F2

(b)Schedule 4 CSOP schemes (see Chapter 8 of this Part), or^F1F3

(c)enterprise management incentives (see Chapter 9 of this Part).^F1