Part 7

Employment income: share-related income and exemptions
Chapter 6

Approved share incentive plans

Tax advantages connected with shares ceasing to be subject to plan

No charge on shares ceasing to be subject to plan in certain circumstances
498
1
A participant is not liable to income tax on shares ceasing to be subject to the plan if—
a
they cease to be so subject on the participant ceasing to be in relevant employment, and
b
subsection (2) applies.
2
This subsection applies if the participant ceases to be in relevant employment—
a
because of injury or disability,
b
on being dismissed by reason of redundancy,
c
by reason of a transfer to which the Transfer of Undertakings (Protection of Employment) Regulations 1981 (S.I. 1981/1794) apply,
d
if the relevant employment is employment by an associated company (see paragraph 95(2) of Schedule 2), by reason of a change of control or other circumstances ending that company’s status as an associated company,
e
by reason of the participant’s retirement on or after reaching the specified retirement age (see paragraph 98 of Schedule 2), or
f
on the participant’s death.