EIM45745 - Employment income provided through third parties: amount of Part 7A income: exercise price of share options: reduction
Section 554Z7(3) ITEPA 2003
If the conditions in Section 554Z7(1) and (2) are met (see EIM45740), you reduce the value of the relevant step.
Reduction if Section 554Z4 has not applied
You take two steps to reduce the value of the relevant step.
Step 1. Calculate the value of the relevant step after any reductions under:
Step 2. Reduce the result of Step 1 (but not below nil) by the amount of the sum of money which A would have to pay as mentioned in Section 554Z7(1)(d) or (2)(b), see EIM45740.
Reduction if Section 554Z4 has applied
You take two steps to reduce the value of the relevant step.
Step 1. Calculate the value of the relevant step after any reductions under:
Step 2. Reduce the value calculated at Step 1 by
S x (Z3V — Z4V) / Z3V
where