EIM12270 - PAYE: employment-related securities: securities disposed of for more than market value

Part 7 Chapter 3D ITEPA 2003

Part 7 Chapter 3D 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 if employment-related securities are disposed of for a consideration that exceeds the market value of the employment-related securities at the time of the disposal.

See Disposals for more than Market Value: contents - HMRC

PAYE

Section 698 ITEPA 2003 was fundamentally amended by Schedule 22 FA 2003 with effect from 1 September 2003. Where an amount counts as employment income of an employee by reason of Part 7 Chapter 3D, 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).

The employer is not required to operate PAYE on an amount that counts as employment income of an employee by reason of Part 7 Chapter 3D if the relevant event occurs on a day before 1 September 2003.