Part 7Employment income: share-related income and exemptions

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.