Part 9Special rules about settlements and trustees

Chapter 5Share incentive plans

488Application of section 479 to trustees of approved share incentive plans

1

This section applies if—

a

income arises to the trustees of an approved share incentive plan, and

b

the income consists of dividends or other distributions in respect of shares held by the trustees in relation to which the requirements of Part 4 of Schedule 2 to ITEPA 2003 (approved share incentive plans: types of shares that may be awarded) are met.

2

Section 479 applies in relation to the income only if and when condition A or condition B has been met.

3

Condition A is that—

a

the applicable period in relation to the shares has ended, and

b

that period came to an end without the shares being awarded to a participant in accordance with the plan.

4

Condition B is that the trustees disposed of the shares before the end of the applicable period in relation to the shares.

5

For the purpose of determining whether shares are awarded to a participant within the applicable period in relation to them, shares acquired by the trustees at an earlier time are taken to be awarded to a participant before shares of the same class acquired by the trustees at a later time.

6

References in this section to shares being awarded to a participant include references to the shares being acquired on behalf of the participant as dividend shares.