Finance Act 2003

Income tax position of the employee in case of shares subject to forfeiture U.K.

20 (1) Where the recipient acquires shares that are subject to forfeiture, this paragraph applies in place of paragraph 7 or 14 (income tax position of the employee). U.K.

(2) It must be the case that the employee—

(a) is subject to a charge to income tax under the Income Tax (Earnings and Pensions) Act 2003 (c. 1) by virtue of section 427 of that Act—

(i) on the shares ceasing to be subject to forfeiture, or

(ii) on the recipient disposing of the shares, or dying, without the shares having ceased to be subject to forfeiture, or

(b) would be subject to such a charge if the conditions in sub-paragraph (3) were met.

(3) The conditions mentioned in sub-paragraph (2)(b) are—

(a) that the employee was resident and ordinarily resident in the United Kingdom at all material times, and

(b) that the duties of the employment by reason of which the award was made or the option was granted were performed in the United Kingdom at all material times.