Income Tax (Earnings and Pensions) Act 2003 section 421

Meaning of "market value" etc.

Section 421 defines what "market value" means for the purposes of the employment-related securities rules and explains how to measure consideration when it is given as an asset rather than cash.

• Market value carries the same meaning as it does under Part 8 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992).
• This definition applies throughout Chapters 1 to 5 of Part 7 of ITEPA 2003, which deal with employment-related securities and options.
• Where consideration for anything is provided in the form of an asset rather than a cash payment, the amount of that consideration is taken to be the market value of the asset.
• This ensures a consistent and objective basis for valuing securities, options and any non-cash consideration across all the employment-related securities provisions.