http://www.legislation.gov.uk/ukpga/2005/5/section/770Income 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 Database2024-06-20Expert Participation2024-04-06Part 6Exempt incomeChapter 9Other income<Emphasis> <Substitution ChangeId="key-a0b7b37a2602c247ec6fca87a5e8b184-1583749155944" CommentaryRef="key-a0b7b37a2602c247ec6fca87a5e8b184">Schedule 2</Substitution> share incentive plan distributions</Emphasis>Amounts applied by <Acronym Expansion="Share Incentive Plans">SIP</Acronym> trustees acquiring dividend shares or retained for reinvestment7701This section applies if—ashares are awarded to a participant under a Schedule 2 share incentive plan, andbthe condition in section 392(3) or (5) is met at the time the shares in question are so awarded (earnings within ITEPA 2003).This is subject to subsection (4).2No liability to income tax arises for the participant in respect of—athe amount applied by the trustees in acquiring dividend shares on behalf of the participant, orbany amount retained under paragraph 68(2) of Schedule 2 to ITEPA 2003 (amount of cash dividend not reinvested).3Subsection (2) does not affect any liability arising as a result of—athe retained amount later being paid out (see sections 393 and 406), orbthe dividend shares ceasing to be subject to the plan (see sections 394 and 407).4This section does not apply if the main purpose or one of the main purposes of the arrangements under which the shares are awarded or acquired is the avoidance of tax or national insurance contributions.5This section forms part of the SIP code (see section 488 of ITEPA 2003: ... share incentive plans).6Accordingly, expressions used in this section and contained in the index in paragraph 100 of Schedule 2 to that Act (... share incentive plans) have the meaning indicated by that index.7In particular—afor the meaning of “dividend shares” see paragraph 62(3)(b) of that Schedule,bfor the meaning of “participant” see paragraph 5(4) of that Schedule, andcfor the meaning of “the trustees” see paragraphs 2(2) and 71(1) of that Schedule.Word in s. 770(5)(6) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 67(3), 89 (with Sch. 8 paras. 90-96)Words in s. 770(1)(a) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 67(2), 89 (with Sch. 8 paras. 90-96)Words in s. 770 cross-heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 66, 89 (with Sch. 8 paras. 90-96)
