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

Part 7 U.K. Employment income: share-related income and exemptions

Chapter 6 U.K. Approved share incentive plans

Tax advantages connected with award of shares U.K.

490 No charge on award or acquisition of shares: general U.K.

(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.