Income Tax (Earnings and Pensions) Act 2003

Conditional interests in shares E+W+S+N.I.

44 Chapter 2 of Part 7 does not apply in relation to interests acquired before 17th March 1998. E+W+S+N.I.

45 (1) This paragraph relates to the operation of section 425 (cases where Chapter 2 of Part 7 does not apply). E+W+S+N.I.

(2) Section 425(1) applies in relation to any acquisition made before 6th April 2003 with the substitution of “if the person was not chargeable under Case I of Schedule E in respect of the office or employment in question” for the words from “if the earnings” onwards.

46 (1) This paragraph relates to the operation of section 428 (amount of charge where interest in shares ceases to be only conditional or on disposal) in relation to an acquisition made before 6th April 2003. E+W+S+N.I.

(2) For the purposes of section 428(1) each of the following is a “deductible amount”—

(a) any amounts on which the employee has become chargeable to tax under Schedule E in respect of the acquisition of the employee’s interest; and

(b) any amount on which the employee has become chargeable to tax in respect of the shares under section 78 or 79 of FA 1988 (unapproved employee share schemes) by reference to an event that occurred before 6th April 2003.

47 (1) This paragraph applies where— E+W+S+N.I.

(a) in the tax year 2002-03 a person provided an individual with an interest in shares which was only conditional, and

(b) the circumstances were such that subsequent events might have given rise to a charge under section 140A of ICTA (charge on conditional interest in shares ceasing to be conditional or on disposal) on that individual.

(2) Section 432 (duty to notify provision of conditional interests in shares) applies in relation to the provision subject to the following provisions.

(3) The particulars required by section 432(2) must be provided to the Inland Revenue before 6th May 2003.

(4) However, no particulars of the provision need be provided by a person under section 432 if that person has already given particulars of it under section 140G(1) of ICTA (which made provision corresponding to section 432 for tax years before 2003-04).

48 (1) This paragraph applies where— E+W+S+N.I.

(a) a person had an interest in shares which was only conditional,

(b) in the tax year 2002-03 either—

(i) the shares ceased to be shares in which that person’s interest was only conditional,

(ii) the shares were disposed of, or

(iii) that person died, and

(c) that event gave rise to a charge under section 140A of ICTA (charge on conditional interest in shares ceasing to be conditional or on disposal).

(2) Section 433 (duty to notify events resulting in charges under section 427) applies in relation to the event subject to the following provisions.

(3) The particulars required by section 433(2) must be provided to the Inland Revenue before 6th May 2003.

(4) However, no particulars of the provision need be provided by a person under section 433 if that person has already given particulars of it under section 140G(2) of ICTA (which made provision corresponding to section 433 for tax years before 2003-04).