Part 9

Special rules about settlements and trustees
Chapter 5

Share incentive plans

Application of section 479 to trustees of Schedule 2 share incentive plans
488
1
This section applies if—
a
income arises to the trustees of a Schedule 2 share incentive plan, and
b
the income consists of dividends or other distributions in respect of shares held by the trustees in relation to which the requirements of Part 4 of Schedule 2 to ITEPA 2003 ( ... share incentive plans: types of shares that may be awarded) are met.
2
Section 479 applies in relation to the income only if and when condition A or condition B has been met.
3
Condition A is that—
a
the applicable period in relation to the shares has ended, and
b
that period came to an end without the shares being awarded to a participant in accordance with the plan.
4
Condition B is that the trustees disposed of the shares before the end of the applicable period in relation to the shares.
5
For the purpose of determining whether shares are awarded to a participant within the applicable period in relation to them, shares acquired by the trustees at an earlier time are taken to be awarded to a participant before shares of the same class acquired by the trustees at a later time.
6
References in this section to shares being awarded to a participant include references to the shares being acquired on behalf of the participant as dividend shares.
Words in s. 488(1)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 71(3)(a), 89 (with Sch. 8 paras. 90-96)
Words in s. 488 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 71(2), 89 (with Sch. 8 paras. 90-96)
Word in s. 488(1)(b) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 71(3)(b), 89 (with Sch. 8 paras. 90-96)