SCHEDULE 8
Part X Income tax
Exclusion of certain charges in relation to participant’s shares
80
(1)
There is no charge to tax on the participant under—
(a)
section 140A of the M1Taxes Act 1988 (charge on conditional acquisition of shares), or
(b)
section 78 of the Finance Act 1988 (charge on removal of restriction),
when any provision for forfeiture to which the shares are subject, in accordance with paragraph 65 (permitted restrictions: provision for forfeiture), is varied or removed.
(2)
A participant is not chargeable to tax under Schedule E by virtue of section 78 of the Finance Act 1988 (charge on removal of restriction) if the chargeable event (within the meaning of that section) is the ending of the holding period in relation to his free, matching or dividend shares.
(3)
A participant is not chargeable to tax under Schedule E by virtue of section 79 of that Act (charge on chargeable increase in value) in respect of any shares of his that are subject to the plan at the end of the period for which the chargeable increase is determined for the purposes of that section.