Income Tax (Earnings and Pensions) Act 2003

The purpose of the planU.K.

7(1)The purpose of the plan must be to provide[F1, in accordance with this Schedule,] benefits to employees in the [F2form] of shares in a company which give them a continuing stake in that company.U.K.

[F3(1A)The plan must not provide benefits to employees otherwise than in accordance with this Schedule.

(1B)For example, the plan must not provide cash to employees as an alternative to shares.

(1C)Sub-paragraph (1A) does not prohibit an employee receiving a benefit from a company as a result of any shares in that company being held on the employee's behalf under the plan where the employee would have received the same benefit from the company had the shares been acquired by the employee otherwise than by virtue of the plan.]

F4(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in Sch. 2 para. 7(1) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 19(2)(a), 89 (with Sch. 8 paras. 90-96)

F2Word in Sch. 2 para. 7(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 19(2)(b), 89 (with Sch. 8 paras. 90-96)

F3Sch. 2 para. 7(1A)-(1C) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 19(3), 89 (with Sch. 8 paras. 90-96)

F4Sch. 2 para. 7(2) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 19(4), 89 (with Sch. 8 paras. 90-96)