Part 9Special rules about settlements and trustees
Chapter 5Share incentive plans
488Application of section 479 to trustees of F1Schedule 2 share incentive plans
(1)
This section applies if—
(a)
income arises to the trustees of F2a Schedule 2 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 (F3... 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.