Income Tax (Earnings and Pensions) Act 2003 section 434

Minor definitions

Section 434 provides a glossary of key terms used throughout the chapter on restricted securities, bringing together definitions from various earlier sources and clarifying their meaning.

  • This section consolidates definitions previously scattered across different provisions into a single, accessible reference point for the restricted securities chapter.
  • The definition of "terms" uses the word "means" rather than the previous "include", making it clear that the definition is comprehensive, covering all the ways in which terms may be imposed — whether formal or otherwise.
  • The definition of "shares" includes stock, without the previous qualifying phrase "in so far as the context permits", since there is no situation in this chapter where that qualification would be needed.
  • Some new labels have been introduced for terms used elsewhere in the chapter (specifically in section 422) to improve clarity and consistency.

Example

Sarah receives 1,000 shares in her employer's company, subject to a restriction that she cannot sell them for three years. When applying the restricted securities rules in this chapter, the term "shares" as defined in section 434 covers not only ordinary shares but also stock. The "terms" attached to Sarah's shares — the three-year selling restriction — fall within the definition regardless of whether they were imposed through a formal contract, an employee share scheme document, or any other arrangement.

Access full legislation.And much more.

By becoming a member, your team gets full access to Tax World research tools and source-backed tax resources.

Become a member