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section 433 if the new holding is conditional.57 If the market value has been manipulated in the ways envisaged under chapters 3A–3D, charges may arise under those chapters. |
On CGT rules see TCGA 1992 section 119A and 149AA; on corporation tax rules on relief for contributions see FA 2003 schedule 23. |
16A.3.3 Post Acquisition Benefits Acquired Person from Securities by Associated Person, Chapter 4. |
ITEPA chapter 4 originally stretched from section 447 to section 470; as a result of FA 2003 it now runs just from sections 447 to 450. As compared with the rules described in §16.4.3 of the Fourth edition the major change is the removal of any mention of dependent subsidiaries which was only made possible by the introduction of chapters 3A–3D. |
The charge, now in ITEPA chapter 4, applies where the securities are employment related securities a benefit is received ‘by an associated person by virtue of the ownership…by that person or another associated person’. Remembering the definition of associated person one can see that the charge arises whether the person is the person who acquired the employment relates securities in the first place, the employee or any relevant linked person.58 The charge arises in the year in which the benefit is received and is on the full market value of the benefit. There is the usual exception where the securities are shares of a class, the benefit is received by all the share owners in that class and either the company is employee controlled by virtue of that holding or outsiders hold the majority of the shares of that class. |