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HMRC internal manual

Employment Related Securities Manual

HM Revenue & Customs
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Restricted securities: securities acquired for purposes of avoidance - deemed election

The deferral of charge under ITEPA03/S425 (2) is automatically removed with effect from 2 December 2004 by ITEPA03/S431B, where the main purpose (or one of the main purposes) of the arrangements under which the right or opportunity to acquire the employment-related securities is made available is the avoidance of tax or national insurance contributions.

At that date there is a deemed election under ITEPA03/S431 (1) and the charge to tax on acquisition will be taken on the full unrestricted market value of the securities. (See ERSM30450 et seq)