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HMRC internal manual

Employment Related Securities Manual

HM Revenue & Customs
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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:

Associated person

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

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.

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