Income Tax (Earnings and Pensions) Act 2003 section 454

Chargeable increases

Section 454 determines the period over which any rise in the value of shares acquired under restricted shares arrangements is measured in order to establish a chargeable increase subject to income tax.

• When shares subject to restrictions increase in value, the increase may be subject to an income tax charge
• The chargeable increase is measured over a specific period, starting from when the shares were first acquired
• The measurement period ends when a chargeable event occurs, such as restrictions being lifted or the shares being disposed of
• This provision ensures that gains attributable to the restricted nature of the shares are captured for tax purposes during the relevant period