CG56336 - Employment-related securities: acquired for nothing or at undervalue: employee: cost

For most employment-related securities the acquisition cost to the employee is the open market value at the date of acquisition, TCGA92/S17 (1). For further details on obtaining the market value of the shares see CG56550+.

»Ê¹ÚÌåÓýapp market value rule does not apply to the acquisition of

  • shares subject to the risk of forfeiture
  • employment-related securities subject to restrictions (including the risk of forfeiture)
  • convertible employment-related securities
  • employment-related securities on the exercise of an employment-securities option.

See CG56321 for more detail about the operation of the market value rule.

»Ê¹ÚÌåÓýapp acquisition cost may be increased where certain additional amounts are charged to Income Tax under employment income, see CG56328-9.