Skip to content
Solved

ETASSUM28160 | Schedule 2 share incentive plan (SIP): Supplementary and defined terms: ’Good leaver’: No charge on shares ceasing to be subject to the plan in certain circumstances

From HM Revenue & Customs · Employee Tax Advantaged Share Scheme User Manual

A participant will not be liable to income tax on shares ceasing to be subject to the Schedule 2 SIP if they cease as a result of the participant ceasing to be in relevant employment due to the following (‘good leaver’ provisions):

  1. because of injury or disability,

  2. by reason of being dismissed by reason of redundancy,

  3. by reason of a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006,

  4. if the relevant employment is employment by an associated company by reason of a change of control or other circumstances ending that company’s status as an associated company,

  5. by reason of the participant’s retirement, or

  6. on the participant’s death,

Section 498 Part 7 ITEPA 2003 refers.