Common use of Purpose of Election Clause in Contracts

Purpose of Election. This joint election is made pursuant to section 431(1) Income Tax (Earnings and Pensions) Act 2003 (ITEPA) and applies where employment-related securities, which are restricted securities by reason of section 423 ITEPA, are acquired. The effect of an election under section 431(1) is that, for the relevant Income Tax and national insurance contribution (“NIC”) purposes, the employment-related securities and their market value will be treated as if they were not restricted securities and that sections 425 to 430 ITEPA do not apply. Additional Income Tax will be payable (with PAYE and NICs where the securities are Readily Convertible Assets). Should the value of the securities fall following the acquisition, it is possible that Income Tax/NIC that would have arisen because of any future chargeable event (in the absence of an election) would have been less than the Income Tax/NIC due by reason of this election. Should this be the case, there is no Income Tax/NIC relief available under Part 7 of ITEPA 2003; nor is it available if the securities acquired are subsequently transferred, forfeited or revert to the original owner.

Purpose of Election. This joint election is made pursuant to section 431(1) Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) and applies where employment-related securities, which are restricted securities by reason of section 423 ITEPA, are acquired. The effect of an election under section 431(1) is that, for the relevant Income Tax purposes of income tax and national insurance contribution National Insurance contributions (“NICNICs”) purposes), the employment-related securities and their market value will be treated as if they were not restricted securities and that sections 425 to 430 ITEPA do not apply. Additional Income Tax income tax will be payable as a result of this election (with PAYE withholding and NICs being applicable where the securities are Readily Convertible Assets). Should the value of the securities fall following the acquisition, it is possible that Income Taxincome tax/NIC NICs that would have arisen because of any future chargeable event (in the absence of an election) would have been less than the Income Taxincome tax/NIC NICs due by reason of this election. Should this be the case, there is no Income Taxincome tax/NIC NICs relief available under Part 7 of ITEPA 2003; nor is it available if the securities acquired are subsequently transferred, forfeited or revert to the original owner.

Purpose of Election. This joint election is made pursuant to section 431(1) Income Tax (Earnings and Pensions) Act 2003 Xxx 0000 (ITEPA“ITEPA 2003”) and applies where employment-related securities, securities which are restricted securities by reason of section 423 ITEPA, ITEPA 2003 are acquired. The effect of an election under section 431(1) is that, for the relevant Income Tax income tax and national insurance contribution contributions (“NICNICs”) purposes, the employment-related securities and their market value will be treated as if they were not restricted securities and that sections 425 to 430 ITEPA do not apply. Additional Income Tax will income tax may be payable (with PAYE and NICs where the securities are Readily Convertible Assetsreadily convertible assets). Should the value of the securities fall following the acquisition, it is possible that Income Taxany income tax/NIC that NICs which would have arisen because of any future chargeable event (in the absence of an election) would have been less than the Income Taxany income tax/NIC NICs due by reason of this election. Should this be the case, there is no Income Taxincome tax/NIC NICs relief available under Part 7 of ITEPA 2003; nor is it any income tax/NICs relief available if the securities acquired are subsequently transferred, forfeited or revert to the original owner.

Purpose of Election. This joint election is made pursuant to section 431(1) Income Tax (Earnings and Pensions) Act 2003 Xxx 0000 (“ITEPA”) and applies where employment-related securities, which are restricted securities by reason of section 423 ITEPA, are acquired. The effect of an election under section 431(1) is that, for the relevant Income Tax purposes of income tax and national insurance contribution National Insurance contributions (“NICNICs”) purposes), the employment-related securities and their market value will be treated as if they were not restricted securities and that sections 425 to 430 ITEPA do not apply. Additional Income Tax income tax will be payable as a result of this election (with PAYE withholding and NICs being applicable where the securities are Readily Convertible Assets). Should the value of the securities fall following the acquisition, it is possible that Income Taxincome tax/NIC NICs that would have arisen because of any future chargeable event (in the absence of an election) would have been less than the Income Taxincome tax/NIC NICs due by reason of this election. Should this be the case, there is no Income Taxincome tax/NIC NICs relief available under Part 7 of ITEPA 2003; nor is it available if the securities acquired are subsequently transferred, forfeited or revert to the original owner.