C1Part 7F7Employment income: income and exemptions relating to securities

Annotations:
Amendments (Textual)
F7

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 6F8... share incentive plans

Annotations:
Amendments (Textual)
F8

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)

Tax advantages connected with award of shares

490No charge on award or acquisition of shares: general

1

This section applies—

a

on the award to an employee of free, matching or partnership shares under the plan, or

b

on the acquisition on behalf of an employee of dividend shares under the plan.

2

The employee is not liable to income tax on the value of the beneficial interest in the shares that passes to the employee at the time of the award or acquisition.

F3491No charge on award of shares as taxable benefit

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

492No charge on partnership share money deducted from salary

1

An employee is not liable to income tax under Part 2 on any amount of the employee’s salary which is deducted as partnership share money under a partnership share agreement.

F12

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493No charge on acquisition of dividend shares

F61

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F62

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3

F5Section 1105(3) of CTA 2010 (information relating to distributions to be provided by nominee) does not apply to any amount applied by the trustees in acquiring dividend shares on behalf of a participant.

F23A

For the exemption of such amounts from income tax, see section 770 of ITTOIA 2005 (amounts applied by SIP trustees acquiring dividend shares or retained for reinvestment).

F44

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5

Subsection (3) is subject to paragraph 80(4)(c) of Schedule 2 (information required where dividend shares cease to be subject to plan).