# Income Tax (Earnings and Pensions) Act 2003, Paragraph 28

Extent: E+W+S+N.I.

(1) Eligible shares must be—
(a) fully paid up, and
(b) not redeemable.
(2) For the purposes of sub-paragraph (1)(a) shares are not to be regarded as fully paid up if there is an undertaking to pay cash at a future date to the company whose shares they are.
(3) For the purposes of sub-paragraph (1)(b) “redeemable” shares include shares that may become redeemable at a future date.
(4) Sub-paragraph (1)(b) does not apply to shares in a registered co-operative society.
(5) In sub-paragraph (4) “registered co-operative society” means—
(a) a society registered as a co-operative society under the Co-operative and Community Benefit Societies Act 2014,
(b) a pre-commencement society (within the meaning of that Act) that is a co-operative society within the meaning of section 2 of that Act,
(c) a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969 that is a co-operative society within the meaning of section 1 of that Act , or
(d) an SCE formed in accordance with Council Regulation (EC) No 1435/2003 on the Statute for a European Cooperative Society.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/2/paragraph/28 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-2/paragraph-28
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.