»Ê¹ÚÌåÓýapp

Part 7 Chapter 3A ITEPA 2003

Part 7 Chapter 3A ITEPA 2003 was introduced with effect from 16 April 2003 by Schedule 22 FA 2003. It provides for a charge to income tax in certain cases where the market value of employment-related securities is reduced by things done otherwise than for genuine commercial purposes. »Ê¹ÚÌåÓýapp Share Schemes Manual will be amended to provide detailed guidance in due course.

PAYE

Section 698 ITEPA 2003 was fundamentally amended by Schedule 22 FA 2003 with effect from 1 September 2003. Where:

• an employee acquires employment-related securities on or after 1 September 2003 and
• an amount counts as employment income of an employee by reason of Part 7 Chapter 3A

then by virtue of Section 698 the employer is required to operate PAYE if the relevant employment-related securities are readily convertible assets (see EIM12400).

»Ê¹ÚÌåÓýapp employer is not required to operate PAYE on an amount that counts as employment income of an employee by reason of Part 7 Chapter 3A if the relevant employment-related securities are acquired before 1 September 2003.