Paragraph 78
United Kingdom
Notwithstanding that the beneficial interest in the shares passes to the employee—
on the award to him of free, matching or partnership shares under the plan, or
on the acquisition on his behalf of dividend shares under the plan,
the value of that interest at the time of the award or acquisition is not treated as income of his chargeable to tax.
An employee is not chargeable to tax under Schedule E by virtue of section 162(1) of the Taxes Act 1988 (deemed loan in case of shares acquired at an under-value) in respect of the award to him of shares under the plan.
This does not affect any charge to tax under section 162(6) of that Act (stop-loss provision).
Incidental expenditure of the trustees or the employer in operating the plan is not treated as giving rise to any charge to income tax on employees.
Annotations
Textual amendments
- F1
Sch 8. para. 78(3) inserted (11.5.2001 with effect as mentioned in Sch. 13 para. 4(2) of the amending Act) by 2001 c. 9, Sch. 13 para. 4
Notes on Schedule 8
Textual amendments
- F1
Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)