Paragraph 81

When free or matching shares cease to be subject to the plan, income tax may be chargeable depending on the period that has elapsed between—

If the period is less than three years, the participant is chargeable to tax under Schedule E on the market value of the shares when they cease to be subject to the plan.

If the period is three years or more but less than five years, the participant is chargeable to tax under Schedule E on—

whichever is less.

Where the participant is charged to tax under sub-paragraph (3)(a) the tax due shall be reduced by the amount or aggregate amount of any tax paid on any capital receipts within paragraph 79 in respect of those shares.

There is no charge to tax under this paragraph on the forfeiture of free or matching shares.

This paragraph has effect subject to—

paragraph 82 (charge to tax on disposal of beneficial interest in shares during the holding period); and

paragraph 87 (circumstances in which there is no charge to tax on shares ceasing to be subject to plan).

Except as provided by this paragraph and paragraph 82 there is no charge to tax on free or matching shares ceasing to be subject to the plan.