Income Tax (Earnings and Pensions) Act 2003 section 457

Charge on other chargeable benefits from shares

Section 457 imposed a tax charge on certain benefits received in connection with shares acquired through employment-related share schemes, whether those shares were held by the employee or by someone else.

• A tax charge arose when an employee (or associated person) received a "chargeable benefit" connected with shares acquired through an employment-related share scheme.
• The charge applied not only when the employee personally held the shares, but also when the shares were held by another person on their behalf or in connection with them.
• The taxable amount was based on the value of the benefit received, and it was treated as employment income for income tax purposes.
• This section was one of three related charging provisions in the same chapter, alongside charges for chargeable events and chargeable increases in share value.