The notional loan provisions apply where employment-related securities are acquired for a consideration, but either no payment is made at or before acquisition, or payment is less than market value1. Any obligation to make payments after the time of acquisition is ignored2. Where the securities are not fully paid up, market value is to be determined as if they were3.
If the employment-related securities in question are restricted securities (see E4.507B), there may be no charge on acquisition (by virtue of ITEPA 2003, s 425(2); see E4.507BA). In these circumstances, the securities are deemed for the purposes of ITEPA 2003, ss 446Q–446W (Pt 7, Ch 3C) not to have been acquired until the first chargeable event under the restricted securities regime (see E4.507C for commentary on such chargeable events)4.
Exceptions from the notional loan charge
Certain cases fall outside the provisions of ITEPA 2003, ss 446Q–446W (Pt 7, Ch 3C). The exception is couched in similar terms to the general
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