Section 507 | Charge on disposal of beneficial interest during holding period

(1)This section applies if—

(a)free or matching shares cease to be subject to the plan at any time during the holding period for those shares, and

(b)this occurs as a result of the participant assigning, charging or otherwise disposing of the participant’s beneficial interest in the shares in breach of obligations under paragraph 36(1)(b) of Schedule 2 (restrictions relating to disposals within holding period).

(2)The market value of the shares at the date when they cease to be subject to the plan counts as employment income of the participant for the relevant tax year.

(3)The “relevant tax year” is the tax year in which that date falls.