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HMRC internal manual

Employment Related Securities Manual

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HM Revenue & Customs
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Securities acquired for less than market value: definitions

Chapter 3C Part 7 ITEPA 2003 uses the definitions contained in Chapter 1. Per ITEPA03/S446W, they are:

Associated person

Associated person has the meaning indicated in ITEPA03/S421C. It is anyone, including the employee himself, who has acquired the securities by reason of the employee’s employment or is a relevant linked person to whom the employee has transferred the securities. See ERSM20250.

Relevant linked person

A person is a relevant linked person if that person and either:

  • the person who acquired the employment-related securities on the acquisition, or;
  • the employee;

(on or after 18 June 2004): are or have been connected or (without being or having been connected) are or have been members of the same household.

(up to 17 June 2004): are connected or, although not connected, are members of the same household. See ERSM20250.

Market value

Market value is determined in accordance with the TCGA92/S272 (see ERSM20400).

Employment

Employment has the meaning ascribed by ITEPA03/S421B(8). See ERSM20210.

Employee

Employee has the meaning ascribed by ITEPA03/S421B(8). See ERSM20240.

Employer

Employer has the meaning ascribed by ITEPA03/S421B(8). See ERSM20210.

Employment-related securities are as defined in ITEPA03/S421B(8). See ERSM20210 and ERSM20230.

Associated company and employee-controlled

Associated company and employee-controlled have the meaning indicated in ITEPA03/S421H. See ERSM20290.

Notional loan

Notional loan has the meaning indicated in ITEPA03/S446S(1). See ERSM70110.