493No charge on acquisition of dividend sharesU.K.
(1)A participant is not liable to income tax on the amount applied by the trustees in acquiring dividend shares on behalf of the participant.
(2)The participant has no entitlement to a tax credit in respect of the amount so applied.
(3)Section 234A(4) of ICTA (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.
(4)Subsections (1) and (2) do not affect—
(a)any charge under section 68B(2) or 251C(1) of ICTA (charge under Case V of Schedule D or Schedule F on dividend shares ceasing to be subject to plan), or
(b)any entitlement to a tax credit in respect of the amount so charged.
(5)Subsection (3) is subject to paragraph 80(4)(c) of Schedule 2 (information required where dividend shares cease to be subject to plan).