Acquisition costs of securities

Where an employee acquires shares in connection with his or her employment he or she usually has an acquisition cost made up of:

the open market value of the shares at the date of acquisition, and

certain additional amounts charged to Income Tax as employment income, see below.

Amounts which are charged to tax as employment income on the employee as a result of: -

ITEPA03/S426 – restricted securities including forfeitable securities,

ITEPA03/S438 and ITEPA03/S439 (3)(a) – convertible securities,

ITEPA03/S446U – discharge of notional loan,

ITEPA03/S476 – gains on exercise of share options,

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