Income Tax (Earnings and Pensions) Act 2003 section 446A

Application of this Chapter

Section 446A sets out when the rules on artificially depressed market value of employment-related securities apply, and defines what counts as actions done otherwise than for genuine commercial purposes.

• The chapter applies where the market value of employment-related securities (or related securities or interests in securities) has been reduced by things done otherwise than for genuine commercial purposes
• Actions caught include anything done as part of a scheme or arrangement whose main purpose (or one of its main purposes) is the avoidance of tax or national insurance contributions
• Non-arm's length transactions between companies in the same group are also treated as non-commercial, unless they are payments for group relief
• A "group" for these purposes means a company and its 51% subsidiaries, and "group relief" has the meaning given by section 183(1) of the Corporation Tax Act 2010