Income Tax (Earnings and Pensions) Act 2003 section Schedule 7 paragraphs 30-31

Taxable benefits: disposals of shares for more than market value

Schedule 7 paragraphs 30–31 dealt with the tax charge that arose when shares acquired through employment-related share option schemes were disposed of for more than their market value, but these provisions have been repealed.

• Paragraphs 30 and 31 of Schedule 7 originally addressed situations where shares obtained via employment-related share option arrangements were sold or transferred at a price exceeding their open market value.
• These provisions created a taxable benefit equal to the excess of the disposal proceeds over the market value of the shares at the time of disposal.
• The paragraphs were repealed by the Finance Act 2003, which reorganised the tax treatment of employment-related securities and share options into a new, consolidated framework.
• Any transactions that would previously have fallen within these paragraphs are now governed by the replacement provisions introduced by the Finance Act 2003.