Income Tax (Earnings and Pensions) Act 2003 section 453

Charge on increase in value of shares dependent subsidiary

Section 453 provides the second charging provision relating to shares acquired by employees, imposing an income tax charge when the value of shares increases and that increase is dependent on a subsidiary company.

• This section creates an income tax charge where shares held by an employee increase in value and that increase depends on a subsidiary company.
• The section specifies the tax year in which the charge arises, ensuring the timing of the liability is clear.
• The amount chargeable and the method of calculating it are dealt with in separate, related sections of the Act.
• Signpost provisions direct the reader to various approved share scheme exemptions that may remove the charge entirely.