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

Chapter to be additional to other income tax charges

Section 446V establishes that the income tax charge on securities acquired for less than market value (Chapter 3C) operates alongside, rather than replacing, other existing income tax charges that may also apply to the same acquisition.

• The Chapter 3C charge on securities acquired below market value does not override or displace any other income tax liability that may arise on the same acquisition under other provisions
• Other charges that are preserved include those on general earnings, taxable benefits, employee shareholder shares treated as earnings, securities acquired by conversion, securities with artificially depressed market value, securities acquired under options, and employment income provided through third parties
• Where both Chapter 3C and another provision apply, the taxpayer is not simply taxed twice — the other charge takes priority, but if the Chapter 3C amount would be higher, the excess is also chargeable
• The practical effect is that the taxpayer pays the higher of the two charges, not both in full, ensuring no undercharge arises simply because another provision happened to apply first