ERSM50020 - Securities with Artificially
Depressed Value
What is an artificially depressed market value?
The provisions in Chapter 3A apply where the market value of
employment-related securities (or other relevant securities or
interests in securities) is reduced by things done otherwise than
for genuine commercial purposes.
Otherwise than for genuine commercial purposes
Per ITEPA03/S446A, the following are among the things that are,
for the purposes of Chapter 3A, done otherwise than for genuine
commercial purposes:
- Anything done that has as its main purpose (or one of its main
purposes) the avoidance of tax or NIC; and
- Non-arm’s length transaction between members of a group
of companies other than payments for group relief
(ICTA88/S402 (6)). In this context “group” means a
company and its 51% subsidiaries.
See examples at
ERSM50030.
