Disposals for more than Market Value: Definitions
Chapter 3D Part 7 ITEPA 2003 uses the definitions contained in Chapter 1. Per ITEPA03/S446Z they are:
An associated person 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 is determined in accordance with the TCGA92/S272 (see ERSM20400). The Supreme Court decision in Grays Timber Products Limited v HMRC (UKSC 2009 0044) provides judicial guidance on the meaning of “market value” and is discussed at ERSM80130.
Consideration is determined in accordance with ITEPA03/S421 (2) and ITEPA03/S421A. See ERSM20430.
Employee has the meaning ascribed by ITEPA03/S421B (8). See ERSM20240.