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“connected person” has the same meaning as in section 10;

then, for the year in which the disposal is effected, the outstanding amount of the excess shall be treated as emoluments of the employee’s employment and accordingly chargeable to income tax under Schedule D or Schedule E.

“emoluments” has the same meaning as in section 113;

“employment” has the same meaning as in section 121;

“employee” and “employer” have the same meanings, respectively, assigned to them by section 122;

“preferential loan” has the same meaning as in section 122;

(2) Where an employee, or a person connected with him or her, acquires shares in a company (whether the employing company or not) and those shares are acquired at an under-value in pursuance of a right or opportunity available by reason of his or her employment, he or she shall be deemed to have the benefit of a loan on which no interest is payable (in this section referred to as the “notional loan”) made directly or indirectly to him or her by a person who at the time the loan is made is, or who at a time subsequent to the making of the loan becomes, an employer in relation to the individual and such notional loan shall be deemed to be a preferential loan to which section 122 applies.

(6) If the notional loan terminates in a manner referred to in subsection (5) (b) or (c), the provisions of section 122(3) shall apply as if an amount equal to the then outstanding amount of the notional loan had been released or written off from a loan within that section.

“shares” includes securities within the meaning of section 135 and stock.

(3) This section shall apply, subject to Chapter 1 of Part 17, for a year of assessment in which an individual has, in accordance with subsection (2), a notional loan and in this section—

(3) This section shall apply, subject to Chapter 1 of Part 17, for a year of assessment in which an individual has, in accordance with subsection (2), a notional loan and in this section—

“market value” shall be construed in accordance with section 548;