Income Tax (Earnings and Pensions) Act 2003

Post-acquisition benefits from shares E+W+S+N.I.

54 Chapter 4 of Part 7 does not apply in relation to shares or an interest in shares acquired before 26th October 1987, except to the extent provided by paragraph 55 (read with paragraph 56). E+W+S+N.I.

55 (1) Chapter 4 of Part 7 applies in relation to shares or an interest in shares acquired before 26th October 1987 if the company was not a dependent subsidiary on that date. E+W+S+N.I.

(2) But it so applies—

(a) with the omission of sections 453 to 460, and

(b) subject to paragraph 56.

56 The removal or variation of a restriction applying to shares or an interest in shares acquired before 26th October 1987 is not a chargeable event for the purposes of section 449 if paragraph 7 of Schedule 8 to FA 1973 (requirement for disposal to nominees at price not exceeding market value on termination of employment) would have applied to it. E+W+S+N.I.

57 Despite the repeals made by this Act— E+W+S+N.I.

(a) sections 138 and 139 of ICTA (share acquisitions by directors and employees), and

(b) section 140 of ICTA (further interpretation) as it applies for the purposes of those sections,

continue to apply in relation to shares or interests in shares acquired before 26th October 1987.

58 (1) This paragraph relates to the operation of section 448 (cases where Chapter 4 of Part 7 does not apply). E+W+S+N.I.

(2) Section 448(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 “if the earnings” onwards.

(3) Section 448(3) and (4) do not apply in relation to any acquisition made before 16th January 1991.

59 (1) This paragraph relates to the operation of section 455 (amount of charge on increase in value of shares) in relation to an acquisition made before 6th April 2003. E+W+S+N.I.

(2) If before that date an event occurred by virtue of which the employee became chargeable to tax under—

(a) section 140A(4) of ICTA (employee’s interest in shares ceasing to be only conditional), or

(b) section 140D(3) of ICTA (charge on conversion of convertible shares),

on any amount in respect of the shares, that amount is a “deductible amount” for the purposes of section 455(1).

60 (1) This paragraph applies where any acquisition of shares or an interest in shares within section 465(1) (general duty to notify acquisitions of shares or interests in shares) was made in the tax year 2002-03. E+W+S+N.I.

(2) Section 465 applies in relation to the acquisition subject to the following provisions.

(3) The particulars of the acquisition required by section 465(3) must be provided to the Inland Revenue before 7th July 2003.

(4) However, no particulars of the acquisition need be provided by a company under section 465 if the company has already given particulars of it under—

(a) section 85(1) of FA 1988 (which made provision corresponding to section 465 for tax years before 2003-04),

(b) section 136(6) of ICTA (which made provision corresponding to section 486 for such tax years), or

(c) section 140G(1) of ICTA (which made provision corresponding to section 432 for such tax years).

61 (1) This paragraph applies where after 4th February but before 6th April 2003— E+W+S+N.I.

(a) a chargeable event (within the meaning given by section 450) occurred in relation to shares in a company, or

(b) a person received a chargeable benefit (within the meaning given by section 458) in respect of shares, or an interest in shares, in a company.

(2) Section 466 (duty to notify chargeable events and chargeable benefits) applies in relation to the event or benefit subject to the following provisions.

(3) The particulars required by section 466(2) must be provided to the Inland Revenue within 60 days after the date on which the event occurred or the benefit was received.

(4) However, no particulars of the event or benefit need be provided by a company under section 466 if the company has already given particulars of it under section 85(2) of FA 1988 (which made provision corresponding to section 466 for tax years before 2003-04).