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Taxation of rights to acquire shares or other assets
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12. The Principal Act is amended—
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(a) in section 128—
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(i) in subsection (2A), by the substitution of “Notwithstanding any other provision of the Tax Acts and subject to subsection (2B), where a person” for “Notwithstanding any other provision of the Tax Acts, where a person”, and
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(ii) by the insertion of the following subsection after subsection (2A):
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“(2B) Where a gain is realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 and a charge to tax arises under this section, Chapter 4 of Part 42 shall apply in respect of the gain.”,
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(b) in section 128B(1), by the substitution of “on or after 30 June 2003 and before 1 January 2024,” for “on or after 30 June 2003,”,
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(c) in section 531AO(1A)—
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(i) in paragraph (a), by the deletion of “or”,
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(ii) in paragraph (b), by the substitution of “Schedule 12A, or” for “Schedule 12A”, and
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(iii) by the insertion of the following paragraph after paragraph (b):
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“(c) an employee realises a gain by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128,”,
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(d) in section 959AB, by the substitution of the following subsection for subsection (3):
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“(3) The emoluments to which this subsection applies are—
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(a) emoluments within the meaning of section 112(2), including any payments chargeable to tax by virtue of section 123 and any sums which by virtue of Chapter 3 of Part 5 are to be treated as perquisites of a person’s office or employment, being emoluments, payments or sums other than those taken into account in an assessment to income tax for the year of assessment in which they are received and, for the purposes of subsection (2)—
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(i) any such payment shall, notwithstanding anything in section 123(4), be treated as having been received at the time it was actually received, and
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(ii) any such sums which are not actually paid to that person shall be treated as having been received at the time when the relevant expenses were incurred or are treated for the purposes of Chapter 3 of Part 5 as having been incurred,
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and
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(b) a gain realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128.”,
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and
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(e) in section 985A—
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(i) in subsection (1)—
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(I) in paragraph (b), by the deletion of “and”,
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(II) in paragraph (c), by the substitution of “section 121A, and” for “section 121A.”, and
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(III) by the insertion of the following paragraph after paragraph (c):
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“(d) a gain realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 which is chargeable to tax by virtue of section 128.”,
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and
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(ii) by the substitution of the following subsection for subsection (3):
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“(3) The amount referred to in this subsection is—
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(a) in respect of the emoluments referred to in paragraphs (a), (b) and (c) of subsection (1), the amount which, on the basis of the best estimate that can reasonably be made, is the amount of income likely to be chargeable to tax under Schedule E in respect of the emolument concerned, and
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(b) in respect of the emolument referred to in paragraph (d) of subsection (1), the gain chargeable to tax under Schedule E as calculated by reference to section 128(4).”.
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