ERSM80020 - Disposals for more than Market Value

Definitions

Chapter 3D Part 7 ITEPA 2003 uses the definitions contained in Chapter 1. Per ITEPA03/S450 they are:

Associated person

An associated person is anyone, including the employee himself, who has acquired the securities by reason of the employee’s employment or is a relevant linked person to whom the employee has transferred the securities. See ERSM20250.

Relevant linked person

A person is a relevant linked person if that person and either:

• the person who acquired the employment-related securities on the acquisition, or;
• the employee;

(on or after 18 June 2004): are or have been connected or (without being or having been connected) are or have been members of the same household.

(up to 17 June 2004): are connected or, although not connected, are members of the same household. See ERSM20250.

Market value

Market value is determined in accordance with the TCGA92/S272 (see ERSM20400). However any agreement regarding the compensation in excess of market value is to be treated as a separate agreement and not as part of the asset to be valued.

Consideration

Consideration is determined in accordance with ITEPA03/S421 (2) and ITEPA03/S421A. See ERSM20430.

Employee

Employee has the meaning ascribed by ITEPA03/S421B (8). See ERSM20240.

Employment-related securities

Employment-related securities are as defined in ITEPA03/S421B (8). See ERSM20210 and ERSM20230.