Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 541: Effects on other income tax charges
2186.The fact that a share option may be a qualifying share option under EMI does not prevent the ordinary operation of certain other income tax provisions. This section sets out what those provisions are. This includes a reference to the possibility of a charge under section 453 in subsection (1)(c). This last subsection derives from section 79 of FA 1988 and, though not immediately relevant since an EMI option cannot be granted over shares in a subsidiary, can apply to shares acquired on exercise of the option if there is a subsequent take-over.
2187.The section also describes what relief may be available as a deductible amount from a charge to tax under sections 427 or 438 in respect of shares acquired under the option.
2188.This section derives from paragraphs 54 (2) and 55 of Schedule 14 to FA 2000.