Part 4 OTHER TAXES

Stamp duty and stamp duty reserve tax

95F2 Exemptions in relation to F3... share incentive plans

1

This section forms part of the SIP code (see section 488 of the Income Tax (Earnings and Pensions) Act 2003 (F3... share incentive plans)).

2

Accordingly, expressions used in this section and contained in the index at the end of Schedule 2 to that Act (F3... share incentive plans) have the meaning indicated by that index.

3

Where, under F1a Schedule 2 SIP, partnership shares or dividend shares are transferred by the trustees to an employee—

a

no ad valorem stamp duty is chargeable on any instrument by which the transfer is made, and

b

no stamp duty reserve tax is chargeable on any agreement by the trustees to make the transfer.

4

But subsection (3) does not apply to—

a

any instrument executed (within the meaning of the Stamp Act 1891) before 6th April 2003, or

b

any agreement to transfer shares made before that date.