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ITEPA 2003, s 446E applies to restricted securities where the market value is artificially depressed after acquisition (see E4.507 onwards). It was designed to prevent avoidance schemes involving the awarding shares subject to very easily achievable performance conditions. The effect of ITEPA 2003, s 446E is to bring artificially-depreciated restricted securities, disposed of or cancelled in a manner that would not otherwise create a charge, within the restricted securities legislation in ITEPA 2003, 422–432 (Pt 7, Ch 2) (see E4.507–E4.507FA). It operates by bringing into charge the unrestricted market value, ignoring any restrictions.

The provisions apply where the market value (for definition, see E4.507A) of employment-related restricted securities (for definition, see E4.507A) is 'artificially low' (see below) on the earliest of the following dates¹:

1. Ìý

   (a)ÌýÌýÌýÌý immediately after an event which is a chargeable event (see E4.507C) in relation to the securities, or

2. Ìý

   (b)ÌýÌýÌýÌý immediately before the securities are disposed of (in circumstances which do not constitute a chargeable event) or are cancelled without being disposed of. These are deemed