SCHEDULES
F1SCHEDULE 7CRelief for transfers to approved share plans
Conditions relating to the disposal
2
1
The first condition is that, at the time of the disposal, the plan is approved under F2Schedule 2 to ITEPA 2003.
2
The second condition is that the relevant shares meet the requirements in F3Part 4 of that Schedule (types of shares that may be F4awarded) in relation to the plan.
For this purpose that Part applies as if paragraph F527(1)(a) and (c) and (2) (listed shares and shares in a company under the control of a company whose shares are listed) were omitted.
3
The third condition is that, at any time in the entitlement period, the trustees hold, for the beneficiaries of the plan trust, shares in the relevant company that—
a
constitute not less than 10% of the ordinary share capital of the company, and
b
carry rights to not less than 10% of—
i
any profits available for distribution to shareholders of the company, and
ii
any assets of that company available for distribution to its shareholders in the event of a winding up.
4
For the purposes of sub-paragraph (3), shares that have been appropriated to, or acquired on behalf of, an individual under the plan shall continue to be treated as held by the trustees of the plan trust for the beneficiaries of that trust until such time as they cease to be subject to the plan (within the meaning F6given by paragraph 97 of Schedule 2 to ITEPA 2003).
5
The fourth condition is that, at all times in the proscribed period, there are no unauthorised arrangements under which the claimant or a person connected with him may be entitled to acquire (directly or indirectly) from the trustees of the plan trust any shares, or an interest in or right deriving from any shares.
6
For the purposes of this paragraph—
“ordinary share capital” has the meaning given in section 832(1) of the Taxes Act;
“the relevant company” means the company of whose share capital the relevant shares form part; and
“the relevant shares” means the shares that are, or an interest in which is, the subject of the disposal.
Sch. 7C inserted (28.7.2000) by Finance Act 2000 (c. 17), s. 48(2), Sch. 9