Section 488 Application of section 479 to trustees of Schedule 2 share incentive plansF3

United Kingdom

(1)

This section applies if—

(a)

income arises to the trustees of F1a 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 (F2... 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.

Annotations

Textual amendments

F1: Words in s. 488(1)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 71(3)(a), 89 (with Sch. 8 paras. 90-96)
F2: Word in s. 488(1)(b) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 71(3)(b), 89 (with Sch. 8 paras. 90-96)
F3: Words in s. 488 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 71(2), 89 (with Sch. 8 paras. 90-96)