Part 4Savings and investment income

Chapter 3Dividends etc. from UK resident companies F4and tax F1treated as paid in respect of certain distributions

Annotations:
Amendments (Textual)
F4

Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with s. 34(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 12 para. 2

F1

Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 3

Shares in F3Schedule 2 share incentive plans (“SIPs”)

Annotations:
Amendments (Textual)
F3

Words in s. 392 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 55, 89 (with Sch. 8 paras. 90-96)

392SIP shares: introduction

1

Sections 393 to 395 contain special rules about the charge under this Chapter in respect of shares awarded to an individual under F2a Schedule 2 share incentive plan.

2

Those sections only apply if condition A or B was met at the time the shares in question were so awarded.

3

Condition A is that—

a

the earnings from the eligible employment were general earnings (see section 7(3) of ITEPA 2003) to which any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 applied, or

b

if there had been any earnings from it, they would have been such earnings.

4

In subsection (3)—

a

“the eligible employment” means the employment resulting in the individual meeting the employment requirement in relation to the plan, and

b

the reference to any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 has the same meaning as it has in the employment income Parts of that Act (see sections 14(3) and 20(3) of that Act).

5

Condition B is that—

a

the shares were awarded before 6th April 2003, and

b

the individual was liable for tax under Schedule E in respect of the relevant employment.

6

In subsection (5) “the relevant employment” means the employment by reference to which the individual met the requirements in paragraph 14 of Schedule 8 to FA 2000 (employee share ownership plans: the employment requirement) in relation to the plan.

7

See section 396 for the general interpretation of this section and sections 393 to 395.