[ERSM20500] Employment-related securities and options: money's worth charge
Acquisitions of options – money's worth
See ERSM110500 for the taxation consequences and ERSM110060 for the exemptions where securities options are granted to employees.
Acquisition of securities – money's worth
Whenever an asset in the form of a security is acquired by an employee from his or her employment free or for less than its market value there will be a charge, because the employee who receives securities at less than their market value receives money's worth. (See EIM00530.) This is subject to exemption or modification by specific provisions of Part 7 ITEPA. (See below.)