Income Tax (Earnings and Pensions) Act 2003 section 419

Negative amounts treated as nil

Section 419 establishes that any negative result arising from the formulae used throughout this Part of the Act is to be treated as zero.

• This Part contains various formulae for calculating taxable amounts relating to employment-related securities and securities options.
• If any of these formulae produce a negative number, the result must be taken as nil (zero) rather than the negative figure.
• This prevents any negative outcome from being used to create a deductible amount or loss against other income.
• The rule applies universally across all provisions and formulae within this Part of the Act.