Part 4

Savings and investment income
Chapter 4

Dividends from non-UK resident companies

Shares in Schedule 2 share incentive plans (“SIPs”)

SIP shares: introduction
405
1
Sections 406 to 408 contain special rules about the charge under this Chapter in respect of shares awarded to an individual under a Schedule 2 share incentive plan.
2
Those sections only apply if the condition in section 392(3) or (5) was met at the time the shares in question were so awarded (earnings within ITEPA 2003).
3
This section and sections 406 to 408 form part of the SIP code (see section 488 of ITEPA 2003 ( ... share incentive plans)).
4
Accordingly, expressions used in this section or those sections and contained in the index in paragraph 100 of Schedule 2 to that Act ( ... share incentive plans) have the meaning indicated by that index.
5
In particular—
a
for the meaning of “award of shares” see paragraph 5(1) of that Schedule,
b
for the meaning of “ceasing to be subject to plan” see paragraph 97 of that Schedule,
c
for the meaning of “dividend shares” see paragraph 62(3)(b) of that Schedule,
d
for the meaning of “participant” see paragraph 5(4) of that Schedule,
e
for the meaning of “plan shares” see paragraphs 86 to 88 and 99(1) of that Schedule, and
f
for the meaning of “shares” see paragraphs 87(6) and 99(2) of that Schedule.
Word in s. 405(3)(4) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 62(3), 89 (with Sch. 8 paras. 90-96)
Words in s. 405(1) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 62(2), 89 (with Sch. 8 paras. 90-96)
Words in s. 405 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 61, 89 (with Sch. 8 paras. 90-96)