{
  "url": "https://openlegislation.uk/finance-act-2000/schedule-8/paragraph-86",
  "json_url": "https://openlegislation.uk/finance-act-2000/schedule-8/paragraph-86.json",
  "legislation": "ukpga/2000/17",
  "legislation_title": "Finance Act 2000",
  "legislation_url": "https://openlegislation.uk/finance-act-2000",
  "path": "schedule/8/paragraph/86",
  "kind": "paragraph",
  "number": "86",
  "heading": null,
  "text": "(1) When partnership shares cease to be subject to the plan, income tax may be chargeable depending on the period that has elapsed between—\n(a) the acquisition date in respect of those shares (as defined by paragraph 40(2) or, as the case may be, 42(3)), and\n(b) the date on which they cease to be subject to the plan.\n(2) If the period is less than three years, the employee is chargeable to income tax under Schedule E on an amount equal to the market value of the shares when they cease to be subject to the plan.\n(3) If the period is three years or more but less than five years, the employee is chargeable to income tax under Schedule E on—\n(a) the amount of partnership share money used to acquire the shares, or\n(b) the market value of the shares when they cease to be subject to the plan,\nwhichever is less.\n(4) 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.\n(5) This paragraph has effect subject to paragraph 87 (circumstances in which there is no charge on shares ceasing to be subject to plan).\n(6) Except as provided by this paragraph, there is no charge to income tax on the employee on partnership shares ceasing to be subject to the plan.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2000/17/schedule/8/paragraph/86",
    "retrieved_at": "2026-10-29T09:21:00.128981+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}