Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 7 U.K. [F1 Employment income: income and exemptions relating to securities]

Textual Amendments

F1 Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)

Modifications etc. (not altering text)

C1 Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

Chapter 6 U.K. F2 ... share incentive plans

Textual Amendments

F2 Word in Pt. 7 Ch. 6 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 2, 89 (with Sch. 8 paras. 90-96)

Scope of tax advantages U.K.

489 Operation of tax advantages in connection with [F3 Schedule 2] SIP U.K.

(1) Sections 490 to 499 apply for income tax purposes in connection with shares awarded under [F4 a Schedule 2] SIP.

(2) But those sections do not apply to an individual if, at the time of the award of shares in question, the earnings from the eligible employment are not (or would not be if there were any) general earnings to which any of the charging provisions of Chapter 4 or 5 of Part 2 apply.

(3) “The eligible employment” means the employment which results in the individual meeting the employment requirement in relation to the plan.

[F5 (4) And those sections do not apply if the main purpose (or one of the main purposes) of the arrangements under which the shares in question are awarded or acquired is the avoidance of tax or national insurance contributions.]

Textual Amendments

F3 Words in s. 489 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 4(2), 89 (with Sch. 8 paras. 90-96)

F4 Words in s. 489(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 4(3), 89 (with Sch. 8 paras. 90-96)

F5 S. 489(4) inserted (18.6.2004 with effect in accordance with s. 88(11)-(13) of the amending Act) by Finance Act 2004 (c. 12), s. 88(4)