Part 7F1Employment income: income and exemptions relating to securities

Annotations:
Amendments (Textual)
F1

Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)

Chapter 6Approved share incentive plans

Tax advantages connected with holding of shares

496No charge on cash dividend retained for reinvestment

1

A participant is not liable to income tax in respect of an amount retained under paragraph 68(2) of Schedule 2 (amount of cash dividend not reinvested).

2

The participant has no entitlement to a tax credit in respect of an amount so retained.

3

This section does not affect any charge under—

a

section 68B(1) or 251B(1) of ICTA (charge under Case V of Schedule D or Schedule F where cash dividend retained and then later paid out), or

b

section 68B(2) or 251C(1) of ICTA (charge under Case V of Schedule D or Schedule F on dividend shares ceasing to be subject to plan),

or affect any tax credit in respect of an amount so charged.