Part 6Exempt income

Chapter 9Other income

Interest only income

752Interest under employees' share schemes

(1)

This section applies if—

(a)

a scheme is set up to comply with section 153(4)(b) of the Companies Act 1985 (c. 6) or Article 163(4)(b) of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)) (financial assistance for the purposes of an employees' share scheme), and

(b)

under the scheme the trustees receive interest from a participant in the scheme.

(2)

So far as the scheme requires the trustees to pay to the company an equivalent amount as interest, no liability to income tax arises under Chapter 2 of Part 4 for the trustees in respect of the interest they receive.