Income Tax (Earnings and Pensions) Act 2003 section 477

Chargeable events

Section 477 defines what constitutes a "chargeable event" in relation to employment-related securities options, for the purposes of the income tax charge under section 476.

• A chargeable event occurs when an associated person acquires securities under the option, assigns or releases the option for consideration, or receives any other benefit connected with the option — but not if the event occurs on or after the employee's death.
• For acquisition purposes, the relevant timing is when a beneficial interest is obtained, not when the securities are formally conveyed or transferred.
• Benefits received on account of an employee's disability (as defined by the Equality Act 2010 or the Disability Discrimination Act 1995) are disregarded and do not trigger a charge.
• The "relevant person" who is liable to the income tax charge is the person who acquires the securities, or — where the event involves an assignment, release, or other benefit — the person who receives the consideration or benefit.