(1)This section applies if dividend shares cease to be subject to an approved share incentive plan before the end of the period of 3 years beginning with the date on which the shares were acquired on the participant's behalf.
(2)For income tax purposes a dividend is treated as paid to the participant in the tax year in which the shares cease to be subject to the plan.
(3)The amount of the dividend treated as paid is the amount of the cash dividend applied to acquire the shares on the participant's behalf, so far as it represents a cash dividend paid in respect of plan shares in a non-UK resident company.
(4)The person liable for any tax charged as a result of this section is the participant.
(5)For rules identifying shares ceasing to be subject to approved share incentive plans, see section 508 of ITEPA 2003.