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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Tax advantages where disqualifying events

  • Section 532 Modified tax consequences following disqualifying events
  • Section 533 Disqualifying events
  • Section 534 Disqualifying events relating to relevant company
  • Section 535 Disqualifying events relating to employee
  • Section 536 Other disqualifying events
  • Section 537 Alterations of share capital for purposes of section 536
  • Section 538 Share conversions excluded for purposes of section 536
  • Section 539 CSOP and other options relevant for purposes of section 536
  1. Tax advantages where disqualifying events
  2. Modified tax consequences following disqualifying events

Section 532 | Modified tax consequences following disqualifying events

From legislation.gov.uk

(1)This section applies where—

(a)a disqualifying event (see section 533) occurs in relation to a qualifying option before the option is exercised, and

(b)the option is exercised later than 90 days after the day on which the event occurred.F1

(2)If the option is within section 530(1) (option to acquire shares at market value), the section 476 gain is—

Formula

PEG-ACO

(see subsection (4)).

(3)If the option is within section 531(1) (option to acquire shares at less than market value), the section 476 gain is—

Formula

(CMV+PEG)-(ACO+ACS)

(see subsection (4)).

(4)For the purposes of subsections (2) and (3)—

(4A)Repealed

(5)In subsections (2) and (3) “the section 476 gain” means the amount under section 478 (amount of charge under section 476) is to be regarded as the taxable amount for the purposes of section 476 in respect of the acquisition of the shares pursuant to the option.F2F3

(6)Nothing in the following provisions—

(a)subsections (2) and (3) above, or

(b)sections 530 and 531,

applies if the amount that counts as employment income by virtue of section 476 in respect of the exercise of the option would, in the absence of those provisions, be less than the amount that counts as such income as a result of those provisions.

Notes

  1. F1

    Word in s. 532(1)(b) substituted (with effect in accordance with Sch. 2 para. 94(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 94(1)

  2. F2

    Words in s. 532(5) substituted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 14(3), 38; S.I. 2013/1755, art. 2

  3. F3

    Words in s. 532(5) substituted (1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 38(1)(2); S.I. 2003/1997, art. 2

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