(1)This section applies if—
(a)either of the following events occurs—
(i)shares cease, without the employee ceasing to have a beneficial interest in them, to be shares in which the employee’s interest is only conditional;
(ii)in a case where shares have not so ceased, the employee sells or otherwise disposes of the employee’s interest or any other beneficial interest in the shares; and
(b)as a result, an amount is chargeable on any person (“the relevant person”) by virtue of section 427(1).
(2)This section also applies if—
(a)an event occurs which is treated for the purposes of section 427 (charge on interest in shares ceasing to be only conditional or on disposal) as an event falling within subsection (1)(b) of that section by virtue of section 431 (disposal where employee dies); and
(b)as a result, an amount is chargeable on any person (“the relevant person”) by virtue of section 427(1).
(3)If this section applies, sections 684 to 691 and 696 have effect as if—
(a)in addition to the provision to the relevant person of the employee’s interest in the shares, a further interest in those shares were provided to the relevant person at the time of the event in question; and
(b)the further interest were not subject to any terms by virtue of which it would fall for the purposes of Chapter 2 of Part 7 (conditional interests in shares) to be treated as only conditional.
(4)Section 696 as applied by subsection (3) has effect as if the reference in subsection (2) of that section to the amount of income likely to be PAYE income in respect of the provision of the asset were a reference to the amount on which tax is likely to be chargeable by virtue of Chapter 2 of Part 7 in respect of the event in question.
(5)Expressions used in this section and any provisions of Chapter 2 of Part 7 have the same meanings in this section as in those provisions.