Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 543: Discount not covered by exemption in section 542
2198.This section derives from section 68(1A) of FA 1988 and excludes from the exemption in section 542 the benefit of certain discounts enjoyed by a director or employee in acquiring the priority shares. The discount therefore remains taxable as earnings. In calculating the taxable discount the amount of any registrant discount (see section 547) is disregarded.