(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.