Section 541 | Effects on other income tax charges

(1)Nothing in the EMI code affects—^F1

(a)the operation of Chapters 2 to 4 of this Part in relation to shares acquired under a qualifying option, or^F1

(b)the operation of Chapter 5 of this Part otherwise than in relation to the acquisition of shares under a qualifying option.^F1

(2)But in calculating the taxable amount for the purposes of section 426 (post-acquisition charge on restricted securities) in respect of shares acquired under a qualifying option, the amount of relief on the exercise of the option is to be regarded as a deductible amount for the purposes of section 428 (amount of charge).^F1

(3)“The amount of relief on the exercise of the option” means the difference between—

(a)the amount that would have counted as employment income by virtue of section 476 in respect of the exercise of the option apart from the EMI code, and

(b)the amount (if any) that in fact counts as such income in accordance with the EMI code.