(Except Clauses 1, 4, 5, 9, 14, 22, 42, 56, 57, 124, 130 to 135, 138, 139, 148 and 184 and Schedules 5, 6, 19 and 25, and any new Clauses and Schedules tabled by Friday 9th May 2003 relating to excise duty on spirits or RÿD tax credits for oil exploration.) - Schedule 22 - Employee securities and options
Finance Bill
4:45 pm
Mr Howard Flight (Arundel and South Downs, Conservative)
I beg to move amendment No. 116, in
schedule 22, page 295, line 1, leave out from first 'the' to 'at' and insert
'net amount which the person who acquires the securities might reasonably expect to realise on a disposal of them'.
The new law potentially increases the amount of taxable gain on the exercise of a share option by using the capital gains tax measure of market value, which is an open valuation and ignores the offset of private restrictions, and by ignoring disposal costs on the shares. The amendment is intended to return the law to the old arrangements.