Income Tax (Earnings and Pensions) Act 2003

Share incentive plans

86 (1) Where the trustees of an approved share incentive plan acquire shares from the trustees of an approved profit sharing scheme, the disposal and the acquisition by the trustees are treated for capital gains tax purposes as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

(2) In such a case the relevant period for the purposes of paragraph 2 of Schedule 7D to TCGA 1992 is determined as if the shares had been acquired by the trustees of the share incentive plan at the time they were acquired by the trustees of the other trust.

This does not affect the date on which the trustees of the share incentive plan are treated as acquiring the shares for the purposes of taper relief.

(3) In this paragraph—

• “approved profit sharing scheme” means a profit sharing scheme approved under Schedule 9 to ICTA, and

• “approved share incentive plan” means a share incentive plan approved under Schedule 2 to this Act.