Section 408 | Reduction in tax due in cases within section 407

(1)This section applies if—

(a)a person is liable for tax as a result of section 407, and

(b)any tax is paid on any capital receipts under section 501 of ITEPA 2003 (charge on capital receipts in respect of plan shares) in respect of the shares that cease to be subject to the Schedule 2 share incentive plan.^F1

(2)The tax due as a result of section 407 is to be reduced by an amount equal to the total tax so paid.

(2A)In subsection (2) “the tax due” means the amount of tax due as a result of section 407 ....^F2F3

(3)For rules identifying shares ceasing to be subject to Schedule 2 share incentive plans, see section 508 of ITEPA 2003.^F4