Income Tax (Earnings and Pensions) Act 2003 section 417

Scope of Part 7

Section 417 introduces Part 7 of the Act, which contains the special tax rules that apply when employees or directors acquire securities, interests in securities, or securities options in connection with their employment.

• Part 7 covers a wide range of employment-related securities arrangements, from restricted and convertible securities through to tax-advantaged share schemes such as share incentive plans, SAYE option schemes, CSOP schemes, and enterprise management incentives
• Chapters 2 to 6 and Chapter 8 set out circumstances in which amounts count as employment income and are therefore subject to income tax
• Chapters 2 and 3, and Chapters 5 to 10, provide various exemptions and reliefs from income tax in respect of employment-related securities
• The general rule that employment income provisions apply equally to office-holders does not extend to the tax-advantaged scheme chapters (Chapters 6 to 10), and separate provision is made for the supplementary employee benefit trust chapter (Chapter 11)