Commentary

48 Tax charges on acquisition of restricted securities etc

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

48 Tax charges on acquisition of restricted securities etc

| Commentary

48 Tax charges on acquisition of restricted securities etc

Where the employee obtains the securities at less than their market value at that time, the basic law provides that the undervalue is treated as employment income at the acquisition date1. The Income Tax (Earnings and Pensions) Act 2003 makes one exception to this rule in the case of employment-related securities (or restricted interests in securities) which are restricted under Section 423(2) of that Act2. Unless the employer and employee jointly elect to the contrary3, there is no charge in respect of acquisition of the

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