Income Tax (Earnings and Pensions) Act 2003

84 (1) The following are disqualifying events for the purposes of paragraph 83— U.K.

(a) a contravention in relation to the operation of the plan of any of the requirements of this Schedule, the plan itself or the plan trust;

(b) an alteration being made in a key feature of the plan, or in the terms of the plan trust, without the approval of [F1 an officer of Revenue and Customs];

(c) if the plan provides for performance allowances in accordance with paragraph 42 (method two), the setting of performance targets in respect of an award of shares which are not consistent targets (within the meaning given by paragraph 42(6));

[F2 (d) an alteration being made—

(i) in the share capital of a company any of whose shares are subject to the plan trust, or

(ii) in the rights attaching to any shares of such a company,

that materially affects the value of shares that are subject to the plan trust;]

(e) shares of a class of which shares [F3 are subject to the plan trust] receiving different treatment in any respect from the other shares of that class;

(f) the trustees failing to furnish any information which they are required to furnish under paragraph 93 (power to require information);

(g) the company, or (in the case of a group plan) a company which is or has been a constituent company, failing to furnish any information which it is required to furnish under that paragraph.

(2) For the purposes of sub-paragraph (1)(b) [F1 an officer of Revenue and Customs] may not withhold F4 ... approval unless it appears to [F5 the officer] at the time in question that the plan as proposed to be altered would not then be approved on an application under paragraph 81.

(3) Sub-paragraph (1)(e) applies, in particular, to different treatment in respect of—

(a) the dividend payable,

(b) repayment, [F6 or]

F7 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) any offer of substituted or additional shares, securities or rights of any description in respect of the shares.

(4) Sub-paragraph (1)(e) does not, however, apply where the difference in treatment arises—

(a) from a key feature of the plan, or

(b) from any of the participants' shares being subject to any [F8 restriction].

(5) Nor does it apply as a result only of the fact that shares which have been newly issued receive, in respect of dividends payable with respect to a period beginning before the date on which they were issued, treatment less favourable than that accorded to shares issued before that date.

(6) For the purposes of this paragraph a “key feature” of a plan is a provision of the plan that is necessary in order to meet the requirements of this Schedule.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

F2 Sch. 2 para. 84(1)(d) substituted (with effect in relation to events taking place on or after 24.3.2010 in accordance with s. 42(7) of the amending Act) by Finance Act 2010 (c. 13), s. 42(2)

F3 Words in Sch. 2 para. 84(1)(e) substituted (with effect in relation to events taking place on or after 24.3.2010 in accordance with s. 42(7) of the amending Act) by Finance Act 2010 (c. 13), s. 42(3)

F4 Word in Sch. 2 para. 84(2) repealed (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(4)(a), Sch. 5; S.I. 2005/1126, art. 2(2)(h)(i)

F5 Words in Sch. 2 para. 84(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(k); S.I. 2005/1126, art. 2(2)(h)

F6 Word in Sch. 2 para. 84(3) inserted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 53(2)(a)

F7 Sch. 2 para. 84(3)(c) and word omitted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 2 para. 53(2)(b)

F8 Word in Sch. 2 para. 84(4)(b) substituted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 53(3)