Finance Act 2001

Charge on distributions in respect of unappropriated shares

6 (1) In paragraph 88—

(a) in sub-paragraph (3) (period during which special trust rates of tax do not apply if shares are readily convertible assets), for “Subject to sub-paragraph (4),” substitute “If any of the shares in the company in question are readily convertible assets at the time the shares are acquired by the trustees,”, and

(b) in sub-paragraph (4) (period during which special trust rates of tax do not apply if shares are not readily convertible assets), in paragraph (b) for “the shares in question” substitute “any of the shares in that company”.

(2) This paragraph has effect in relation to any shares acquired by the trustees of an employee share ownership plan after the passing of this Act.

(3) For the purposes of sub-paragraph (2), “the trustees of an employee share ownership plan” means the body of persons established in accordance with paragraph 68 of Schedule 8 to the Finance Act 2000 (c. 17).