Section 392 SIP shares: introduction
United Kingdom
Sections 393 to 395 contain special rules about the charge under this Chapter in respect of shares awarded to an individual under F1a Schedule 2 share incentive plan.
Those sections only apply if condition A or B was met at the time the shares in question were so awarded.
Condition A is that—
the earnings from the eligible employment were general earnings (see section 7(3) of ITEPA 2003) to which any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 applied, or
if there had been any earnings from it, they would have been such earnings.
In subsection (3)—
“the eligible employment” means the employment resulting in the individual meeting the employment requirement in relation to the plan, and
the reference to any of the charging provisions of Chapter 4 or 5 of Part 2 of ITEPA 2003 has the same meaning as it has in the employment income Parts of that Act (see sections 14(3) and 20(3) of that Act).
Condition B is that—
the shares were awarded before 6th April 2003, and
the individual was liable for tax under Schedule E in respect of the relevant employment.
In subsection (5) “the relevant employment” means the employment by reference to which the individual met the requirements in paragraph 14 of Schedule 8 to FA 2000 (employee share ownership plans: the employment requirement) in relation to the plan.
See section 396 for the general interpretation of this section and sections 393 to 395.
Annotations
Textual amendments
- F1
Words in s. 392(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 56, 89 (with Sch. 8 paras. 90-96)
Notes on Chapter 3
Textual amendments
- F1
Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with s. 34(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 12 para. 2
- F2
Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 3
Notes on Shares in Schedule 2 share incentive plans (“SIPs”)
Textual amendments
- F1
Words in s. 392 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 55, 89 (with Sch. 8 paras. 90-96)