Income Tax (Earnings and Pensions) Act 2003

Part 8 Approved profit sharing schemes

Trustees' duty to provide information

85 Any obligation imposed in accordance with paragraph 34(b) of Schedule 9 to ICTA (trustees' duties to provide information) on the trustees of a profit sharing scheme approved under that Schedule is to be construed as an obligation, where an amount counts as employment income of a participant by reason of the occurrence of any event, to inform the participant of any facts relevant to determining the participant’s resulting liability to tax.

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.

Other share schemes: eligibility of individuals and material interests

87 (1) In applying any of the provisions specified in sub-paragraph (2) (which deal with the meaning of “material interest” for the purpose of determining eligibility to participate in share schemes, etc.) the following are to be disregarded—

(a) the interest of the trustees of any profit sharing scheme approved under Schedule 9 to ICTA in any shares which are held by them in accordance with the plan but which have not been appropriated to an individual, and

(b) any rights exercisable by the trustees as a result of that interest.

(2) The provisions referred to in sub-paragraph (1) are—

(a) paragraph 20 of Schedule 2 (approved share incentive plans);

(b) paragraph 12 of Schedule 3 (approved SAYE option schemes);

(c) paragraph 10 of Schedule 4 (approved CSOP schemes);

(d) paragraph 29 of Schedule 5 (enterprise management incentives).