http://www.legislation.gov.uk/ukpga/2005/5/section/395Income Tax (Trading and Other Income) Act 2005An Act to restate, with minor changes, certain enactments relating to income tax on trading income, property income, savings and investment income and certain other income; and for connected purposes.texttext/xmlenStatute Law Database2026-07-30Expert Participation2026-07-15
Income Tax (Trading and Other Income) Act 2005s. 168(6)(e) and wordPlanning (Consequential Provisions) (Wales) Act 2026Deddf Cynllunio (Darpariaethau Canlyniadol) (Cymru) 2026Sch. 2 para. 370(b)Sch. 5 Pt. 1s. 5(2)
Part 4Savings and investment incomeChapter 3Dividends <Abbreviation Expansion="et cetera" xml:lang="la">etc.</Abbreviation> from <Acronym Expansion="United Kingdom">UK</Acronym> resident companies <SmallCaps><Substitution ChangeId="key-8a022e8508ceae434510bd55c41957c1-1517911754441" CommentaryRef="key-8a022e8508ceae434510bd55c41957c1">and tax </Substitution><Substitution ChangeId="key-8a022e8508ceae434510bd55c41957c1-1517911754441" CommentaryRef="key-8a022e8508ceae434510bd55c41957c1"><Substitution ChangeId="key-3745817e47a19eaebca2d6521465924c-1583856173025" CommentaryRef="key-3745817e47a19eaebca2d6521465924c">treated as paid</Substitution></Substitution><Substitution ChangeId="key-8a022e8508ceae434510bd55c41957c1-1517911754441" CommentaryRef="key-8a022e8508ceae434510bd55c41957c1"> in respect of certain distributions</Substitution></SmallCaps>
<Emphasis>Shares in <Substitution ChangeId="key-494667a7393ac735cbb650b0dacc0ffb-1583748173637" CommentaryRef="key-494667a7393ac735cbb650b0dacc0ffb">Schedule 2</Substitution> share incentive plans (“<Term id="term-sips">SIPs</Term>”)</Emphasis>Reduction in tax due in cases within section 3943951This section applies if—aa person is liable to tax as a result of section 394, andbany tax is paid on any capital receipts under section 501 of ITEPA 2003 (charge on capital receipts in respect of plan shares) in respect of the shares that cease to be subject to the Schedule 2 share incentive plan.2The tax due is to be reduced by an amount equal to the total tax so paid.3In subsection (2) “the tax due” means the amount of tax due as a result of section 394 ....4For rules identifying shares ceasing to be subject to Schedule 2 share incentive plans, see section 508 of ITEPA 2003.Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 3Words in s. 392 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 55, 89 (with Sch. 8 paras. 90-96)Words in Pt. 4 Ch. 3 heading substituted (with effect in accordance with s. 34(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 12 para. 2Words in s. 395(1)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 58, 89 (with Sch. 8 paras. 90-96)Words in s. 395(4) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 58, 89 (with Sch. 8 paras. 90-96)Words in s. 395(3) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 8