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Legislation
Income Tax (Earnings and Pensions) Act 2003

Crossheading Charges connected with shares ceasing to be subject to plan

  • Section 505 Charge on free or matching shares ceasing to be subject to plan
  • Section 506 Charge on partnership shares ceasing to be subject to plan
  • Section 507 Charge on disposal of beneficial interest during holding period
  • Section 508 Identification of shares ceasing to be subject to plan
  1. Charges connected with shares ceasing to be subject to plan
  2. Identification of shares ceasing to be subject to plan

Section 508 | Identification of shares ceasing to be subject to plan

From legislation.gov.uk

(1)For the purpose of determining any liability to tax arising by virtue of the SIP code in respect of any of a participant’s shares ceasing to be subject to the plan—

(a)shares are to be taken as ceasing to be subject to the plan in the order in which they were awarded to the participant under the plan, and

(b)where shares are awarded to the participant on the same day, the shares are to be treated as ceasing to be subject to the plan in the order which gives rise to the lowest charge to income tax on the participant.

(2)For the purposes of subsection (1) dividend shares are “awarded” to a participant when the trustees acquire them on behalf of, or appropriate them to, the participant.

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