SCHEDULE 7Transitionals and savings
Part 7Employment income: income related to securities
Approved share incentive plans
68
(1)
This paragraph applies where, immediately before 6th April 2003, an employee share ownership plan was approved under Schedule 8 to FA 2000 (employee share ownership plans).
(2)
On and after that date the plan is to be treated as a share incentive plan (or “SIP”) approved by F1an officer of Revenue and Customs under Schedule 2 to this Act.
(3)
Sub-paragraph (2) has effect even if the provisions of the plan do not wholly conform with the provisions of Schedule 2 to this Act, but it has effect without prejudice to—
(a)
paragraphs 83 and 84 of that Schedule (withdrawal of approval),
(b)
paragraphs 89 and 90 of that Schedule (termination of plan), and
(c)
any alteration of the plan.
(4)
For the purposes of paragraph 84(1)(a) of Schedule 2, as it applies to the plan, nothing is to be regarded as a disqualifying event because of a contravention of any of the requirements of that Schedule if the requirement in question does not correspond to any of the requirements of Schedule 8 to FA 2000.
(5)
Nothing in this Act affects the validity of—
(a)
any provision of the plan which was included in it at any time before 6th April 2003 in accordance with the provisions of Schedule 8 to FA 2000 as then in force, or
(b)
any award of shares under the plan which was made at any such time in accordance with the provisions of that Schedule as then in force.
(6)
In this paragraph—
“award of shares” means the appropriation of shares to, or the acquisition of shares on behalf of, a person;
“employee share ownership plan” has the meaning given by paragraph 1(1) of Schedule 8 to FA 2000.
69
(1)
Any reference in any enactment, instrument or document—
(a)
to an employee share ownership plan, or
(b)
to an employee share ownership plan approved under Schedule 8 to FA 2000,
is to be read as including, in relation to times after 5th April 2003, a reference to a share incentive plan or to a share incentive plan approved under Schedule 2 to this Act.
(2)
Any reference in any enactment, instrument or document—
(a)
to a share incentive plan (or SIP), or
(b)
to a share incentive plan (or SIP) approved under Schedule 2 to this Act,
is to be read as including, in relation to times before 6th April 2003, a reference to an employee share ownership plan or to an employee share ownership plan approved under Schedule 8 to FA 2000.
(3)
Accordingly any reference in the SIP code to shares awarded under an approved SIP is to be read as including, in relation to times before 6th April 2003, a reference to shares awarded under a plan approved under Schedule 8 to FA 2000.
(4)
Any reference in a plan within paragraph 68(1) to a person chargeable to tax under Case I of Schedule E is to be read as including, in relation to times after 5th April 2003, a reference to a person whose earnings fall within paragraph 8(2) of Schedule 2 to this Act.
(5)
This paragraph—
(a)
is without prejudice to Part 1 of this Schedule, and
(b)
applies only in so far as the context permits.
(6)
In this paragraph—
“awarded” means appropriated to, or acquired on behalf of, a person;
“employee share ownership plan” has the same meaning as in paragraph 68.
70
Nothing in paragraph 91(4) of Schedule 2 to this Act (jointly owned companies) prevents a company being a constituent company in a group plan (within the meaning of that Schedule) if it was a participating company in that plan (within the meaning of Schedule 8 to FA 2000) immediately before 24th July 2002.