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if the employee dies or payment of any of the amounts outstanding are made by an associated person. It seems that payments by a person about to become an associated person are not caught. |
Part 3C is excluded in certain situations.74 These are where the shares are in one class and al the shares in that class have been acquired at less than market value and either the company is employee controlled by virtue of that class or, going in the opposite direction, employees etc have less than half the shares of that class. The term ‘employees etc’ is used to cover associates and relatives and associated companies. |
Where 3C applies, the charge is additional to any other head—section 62, section 203, part 3, 3A and 5 for part 7.75 |
16A.4.4 Securities Disposed of for Less Than Market Value, Chapter 3D |
The final anti-avoidance measure is chapter 3D dealing with securities disposed of for more than market value. It applies where the employment related securities are disposed of by an associated person so that that person is no longer beneficially entitled to them.76 The charge is on the employee not the associated person and is on the consideration less than the market value and any allowable expense in connection with the disposal.77 |