Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 4 U.K. Savings and investment income

Chapter 3 U.K. Dividends etc. from UK resident companies [F1 and tax [F2 treated as paid] in respect of certain distributions]

Textual Amendments

F1 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

F2 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 [F3 Schedule 2] share incentive plans (“SIPs”) U.K.

Textual Amendments

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)

395 Reduction in tax due in cases within section 394 U.K.

(1) This section applies if—

(a) a person is liable to tax as a result of section 394, and

(b) any tax is paid on any capital receipts under section 501 of ITEPA 2003 (charge on capital receipts in respect of plan shares) in respect of the shares that cease to be subject to the [F4 Schedule 2] share incentive plan.

(2) The tax due is to be reduced by an amount equal to the total tax so paid.

(3) In subsection (2) “the tax due” means the amount of tax due as a result of section 394 F5 ....

(4) For rules identifying shares ceasing to be subject to [F6 Schedule 2] share incentive plans, see section 508 of ITEPA 2003.

Textual Amendments

F4 Words in s. 395(1)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 58, 89 (with Sch. 8 paras. 90-96)

F5 Words in s. 395(3) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 8

F6 Words in s. 395(4) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 58, 89 (with Sch. 8 paras. 90-96)