CG56339 - Shares and securities: employee share schemes: employment-related securities: restricted securities
prevents the market value rule applying to the acquisition of restricted employment-related securities (including shares subject to the risk of forfeiture) (see CG56321) The acquisition cost for capital gains purposes is instead built up from the actual cost and amounts chargeable to Income Tax. For the definition of restricted securities see .
permit the employer and employee to elect to ignore restrictions on employment-related securities. The effect of such an election is that any (further) appreciation in the value does not give rise to an amount counting as employment income and is included instead in the computation of a capital gain accruing on a disposal of the security. 
The capital gains acquisition cost of restricted employment-related securities (including shares subject to the risk of forfeiture) acquired on or after 1 September 2003 is, by
their actual cost at the date of acquisition together with
any amount which constituted earnings in respect of their acquisition under (for disposals after 11 March 2008 exempt income is ignored. For disposals after 5 April 2015 earnings which were not charged to UK tax, but which would have been exempt if they had been, are also ignored) and
amounts counting as income under on or before the disposal (see and CG56328).
In the case of shares which on acquisition became employee shareholder shares (see CG56705P) the consideration for the acquisition is (subject to the operation of ) equal to the amount that constituted earnings under or and no other consideration is treated as having been given for the acquisition of the shares.
For shares or securities acquired before 1 September 2003 the starting point for the acquisition cost is the market value subject to restrictions and there is no addition for an amount constituting employment income under or . transitional provisions may apply in relation to acquisitions in 2003.
The capital gains acquisition cost of restricted shares (other than shares subject to the risk of forfeiture, see CG56349) acquired before 16 April 2003 is
the market value subject to the restrictions at the date of acquisition together with
any amount chargeable to Income Tax under , on an increase in the value of shares after they are acquired and on or before the disposal. (From 6 April 2003 replaces .) See , , and CG56328.
The capital gains acquisition cost of restricted employment-related securities (other than shares subject to the risk of forfeiture, see CG56349) acquired before 1 September 2003 but after 15 April 2003 is
the market value subject to the restrictions at the date of acquisition together with
any amount counting as income on or before the disposal under on or after the 1 September 2003 (see )