|
| |
| |
43 (1) This paragraph applies for the purpose of determining how the £30,000 | |
threshold referred to in sections 403 and 404 operates where— | |
(a) payments or other benefits to which Chapter 3 of Part 6 apply are | |
received, and | |
(b) payments or benefits to which section 148 of ICTA applied were | 5 |
received in respect of the same person— | |
(i) in respect of the same employment, or | |
(ii) in respect of different employments with the same employer | |
or associated employers. | |
(2) For the purposes of section 403(4) and (5), section 415 (valuation of benefits) | 10 |
does not apply to the payments and benefits referred to in sub-paragraph | |
(1)(b), and their aggregate amount is to be taken to be their aggregate | |
amount immediately before 6th April 2003. | |
(3) The references in sections 403(4) and (5) and 404(3)(b) to payments or | |
benefits to which Chapter 3 of Part 6 applies include references to the | 15 |
payments and benefits referred to in sub-paragraph (1)(b). | |
(4) Section 404(2) (when employers are associated) applies for the purposes of | |
this paragraph. | |
Part 7 | |
Employment income: share-related income | 20 |
Conditional interests in shares | |
44 Chapter 2 of Part 7 does not apply in relation to interests acquired before | |
17th March 1998. | |
45 (1) This paragraph relates to the operation of section 425 (cases where Chapter | |
2 of Part 7 does not apply). | 25 |
(2) Section 425(1) applies in relation to any acquisition made before 6th April | |
2003 with the substitution of “if the person was not chargeable under Case 1 | |
of Schedule E in respect of the office or employment in question” for the | |
words from “if the earnings” onwards. | |
46 (1) This paragraph relates to the operation of section 428 (amount of charge | 30 |
where interest in shares ceases to be only conditional or on disposal) in | |
relation to an acquisition made before 6th April 2003. | |
(2) For the purposes of section 428(1) each of the following is a “deductible | |
amount”— | |
(a) any amounts on which the employee has become chargeable to tax | 35 |
under Schedule E in respect of the acquisition of the employee’s | |
interest; and | |
(b) any amount on which the employee has become chargeable to tax in | |
respect of the shares under section 78 or 79 of FA 1988 (unapproved | |
employee share schemes) by reference to an event that occurred | 40 |
before 6th April 2003. | |
47 (1) This paragraph applies where— | |
(a) in the tax year 2002-03 a person provided an individual with an | |
interest in shares which was only conditional, and | |
| |
| |
|
| |
| |
(b) the circumstances were such that subsequent events might have | |
given rise to a charge under section 140A of ICTA (charge on | |
conditional interest in shares ceasing to be conditional or on | |
disposal) on that individual. | |
(2) Section 432 (duty to notify provision of conditional interests in shares) | 5 |
applies in relation to the provision subject to the following provisions. | |
(3) The particulars required by section 432(2) must be provided to the Inland | |
Revenue before 6th May 2003. | |
(4) However, no particulars of the provision need be provided by a person | |
under section 432 if that person has already given particulars of it under | 10 |
section 140G(1) of ICTA (which made provision corresponding to section | |
432 for tax years before 2003-04). | |
48 (1) This paragraph applies where— | |
(a) a person had an interest in shares which was only conditional, | |
(b) in the tax year 2002-03 either— | 15 |
(i) the shares ceased to be shares in which that person’s interest | |
was only conditional, | |
(ii) the shares were disposed of, or | |
(iii) that person died, and | |
(c) that event gave rise to a charge under section 140A of ICTA (charge | 20 |
on conditional interest in shares ceasing to be conditional or on | |
disposal). | |
(2) Section 433 (duty to notify events resulting in charges under section 427) | |
applies in relation to the event subject to the following provisions. | |
(3) The particulars required by section 433(2) must be provided to the Inland | 25 |
Revenue before 6th May 2003. | |
(4) However, no particulars of the provision need be provided by a person | |
under section 433 if that person has already given particulars of it under | |
section 140G(2) of ICTA (which made provision corresponding to section | |
433 for tax years before 2003-04). | 30 |
Convertible shares | |
49 Chapter 3 of Part 7 does not apply in relation to shares acquired before 17th | |
March 1998. | |
50 (1) This paragraph relates to the operation of section 437 (cases where Chapter | |
3 of Part 7 does not apply). | 35 |
(2) Section 437(1) applies in relation to any acquisition made before 6th April | |
2003 with the substitution of “if the person was not chargeable under Case 1 | |
of Schedule E in respect of the office or employment in question” for the | |
words from “if the earnings” onwards. | |
51 (1) This paragraph relates to the operation of section 439 (amount of charge on | 40 |
conversion of shares) in relation to an acquisition made before 6th April | |
2003. | |
(2) For the purposes of section 439(1) each of the following is a “deductible | |
amount”— | |
| |
| |
|
| |
| |
(a) any amounts on which the employee has become chargeable to tax | |
under Schedule E in respect of the acquisition of the convertible | |
shares or the interest in them; | |
(b) if the convertible shares, or an interest in them, were acquired | |
through a series of conversions each of which was a pre- | 5 |
commencement taxable conversion, the amount of the gain under | |
section 140D(5) of ICTA from each conversion, so far as not falling | |
within paragraph (a); and | |
(c) any amount on which the employee has become chargeable to tax in | |
respect of the shares under section 78 or 79 of FA 1988 (unapproved | 10 |
employee share schemes) by reference to an event that occurred | |
before 6th April 2003. | |
(3) In sub-paragraph (2)(b) a “pre-commencement taxable conversion” means a | |
conversion which— | |
(a) gave rise to a gain on which the employee was chargeable to tax by | 15 |
virtue of section 140D of ICTA, or | |
(b) would have done so but for the fact that the market value of the | |
shares at the time of the conversion did not exceed the sum of the | |
deductible amounts. | |
52 (1) This paragraph relates to the operation of section 439 (amount of charge on | 20 |
conversion of shares) in relation to an acquisition made on or after 6th April | |
2003 through a series of conversions, one or more of which occurred before | |
that date and each of which was a pre-commencement taxable conversion or | |
a taxable conversion. | |
(2) In this paragraph— | 25 |
“pre-commencement taxable conversion” has the meaning given by | |
paragraph 51(3), and | |
“taxable conversion” has the meaning given by section 439(6). | |
(3) For the purposes of section 439(1) each of the following is a “deductible | |
amount”— | 30 |
(a) the amount of the gain under section 140D(5) of ICTA from each pre- | |
commencement taxable conversion; and | |
(b) the taxable amount for each taxable conversion, so far as not falling | |
within paragraph (c), (d) or (e) of section 439(2). | |
53 (1) This paragraph applies where— | 35 |
(a) a person provided an individual with convertible shares, or an | |
interest in such shares, in a company, | |
(b) those shares were converted in the tax year 2002-03 into shares of a | |
different class, and | |
(c) the circumstances were such that the conversion gave rise, or might | 40 |
have given rise, to a charge under section 140D of ICTA (convertible | |
shares) on the individual. | |
(2) Section 445 (duty to notify conversions of shares) applies in relation to the | |
conversion subject to the following provisions. | |
(3) The particulars required by section 445(2) must be provided to the Inland | 45 |
Revenue before 6th May 2003. | |
(4) However, no particulars of the provision need be provided by a person | |
under section 445 if that person has already given particulars of it under | |
| |
| |
|
| |
| |
(4) section 140G(3) of ICTA (which made provision corresponding to section | |
445 for tax years before 2003-04). | |
Post-acquisition benefits from shares | |
54 Chapter 4 of Part 7 does not apply in relation to shares or an interest in | |
shares acquired before 26th October 1987, except to the extent provided by | 5 |
paragraph 55 (read with paragraph 56). | |
55 (1) Chapter 4 of Part 7 applies in relation to shares or an interest in shares | |
acquired before 26th October 1987 if the company was not a dependent | |
subsidiary on that date. | |
(2) But it so applies— | 10 |
(a) with the omission of sections 453 to 460, and | |
(b) subject to paragraph 56. | |
56 The removal or variation of a restriction applying to shares or an interest in | |
shares acquired before 26th October 1987 is not a chargeable event for the | |
purposes of section 449 if paragraph 7 of Schedule 8 to FA 1973 (requirement | 15 |
for disposal to nominees at price not exceeding market value on termination | |
of employment) would have applied to it. | |
57 Despite the repeals made by this Act— | |
(a) sections 138 and 139 of ICTA (share acquisitions by directors and | |
employees), and | 20 |
(b) section 140 of ICTA (further interpretation) as it applies for the | |
purposes of those sections, | |
continue to apply in relation to shares or interests in shares acquired before | |
26th October 1987. | |
58 (1) This paragraph relates to the operation of section 448 (cases where Chapter | 25 |
4 of Part 7 does not apply). | |
(2) Section 448(1) applies in relation to any acquisition made before 6th April | |
2003 with the substitution of “if the person was not chargeable under Case I | |
of Schedule E in respect of the office or employment in question” for the | |
words “if the earnings” onwards. | 30 |
(3) Section 448(3) and (4) do not apply in relation to any acquisition made before | |
16th January 1991. | |
59 (1) This paragraph relates to the operation of section 455 (amount of charge on | |
increase in value of shares) in relation to an acquisition made before 6th | |
April 2003. | 35 |
(2) If before that date an event occurred by virtue of which the employee | |
became chargeable to tax under— | |
(a) section 140A(4) of ICTA (employee’s interest in shares ceasing to be | |
only conditional), or | |
(b) section 140D(3) of ICTA (charge on conversion of convertible shares), | 40 |
on any amount in respect of the shares, that amount is a “deductible | |
amount” for the purposes of section 455(1). | |
60 (1) This paragraph applies where any acquisition of shares or an interest in | |
shares within section 465(1) (general duty to notify acquisitions of shares or | |
interests in shares) was made in the tax year 2002-03. | 45 |
| |
| |
|
| |
| |
(2) Section 465 applies in relation to the acquisition subject to the following | |
provisions. | |
(3) The particulars of the acquisition required by section 465(3) must be | |
provided to the Inland Revenue before 7th July 2003. | |
(4) However, no particulars of the acquisition need be provided by a company | 5 |
under section 465 if the company has already given particulars of it under— | |
(a) section 85(1) of FA 1988 (which made provision corresponding to | |
section 465 for tax years before 2003-04), | |
(b) section 136(6) of ICTA (which made provision corresponding to | |
section 486 for such tax years), or | 10 |
(c) section 140G(1) of ICTA (which made provision corresponding to | |
section 432 for such tax years). | |
61 (1) This paragraph applies where after 4th February but before 6th April 2003— | |
(a) a chargeable event (within the meaning given by section 450) | |
occurred in relation to shares in a company, or | 15 |
(b) a person received a chargeable benefit (within the meaning given by | |
section 458) in respect of shares, or an interest in shares, in a | |
company. | |
(2) Section 466 (duty to notify chargeable events and chargeable benefits) | |
applies in relation to the event or benefit subject to the following provisions. | 20 |
(3) The particulars required by section 466(2) must be provided to the Inland | |
Revenue within 60 days after the date on which the event occurred or the | |
benefit was received. | |
(4) However, no particulars of the event or benefit need be provided by a | |
company under section 466 if the company has already given particulars of | 25 |
it under section 85(2) of FA 1988 (which made provision corresponding to | |
section 466 for tax years before 2003-04). | |
Share options | |
62 The following provisions have effect in relation to rights obtained before 6th | |
April 1998 with the substitution of “seventh anniversary” for “tenth | 30 |
anniversary”— | |
(a) section 474(1) (no charge in respect of receipt of shorter-term option), | |
and | |
(b) section 475(1) (value of longer-term option for purposes of liability to | |
tax in respect of receipt). | 35 |
63 (1) This paragraph relates to the operation of section 473 (share options to which | |
Chapter 5 of Part 7 does not apply). | |
(2) Section 473(1) applies in relation to a share option granted before 6th April | |
2003 with the substitution of “if the person was not chargeable under Case 1 | |
of Schedule E in respect of the office or employment” for the words from “if | 40 |
the earnings” onwards. | |
64 (1) This paragraph relates to the operation of section 478 (amount of charges) in | |
relation to a share option obtained before 6th April 2003. | |
(2) For the purposes of section 478(1), any amount charged to tax under | |
Schedule E in respect of the receipt of the share option is a deductible | 45 |
amount. | |
| |
| |
|
| |
| |
65 (1) This paragraph relates to the operation of section 479 (amount of gain | |
realised by exercising option) in relation to a share option obtained before | |
6th April 2003. | |
(2) For the purposes of section 479(1), if an amount was chargeable to tax under | |
section 185(6) of ICTA (charge where option under approved share option | 5 |
scheme granted at a discount) in respect of the share option, so much of that | |
amount as is attributable to the shares in question is a deductible cost. | |
66 (1) This paragraph relates to the operation of section 480 (amount of gain | |
realised by assigning or releasing option) in relation to a share option | |
obtained before 6th April 2003. | 10 |
(2) For the purposes of section 480(1), if an amount was chargeable to tax under | |
section 185(6) of ICTA (charge where option under approved share option | |
scheme granted at a discount) in respect of the share option, so much of that | |
amount as is attributable to the shares in question is a deductible cost. | |
67 (1) This paragraph applies where in the tax year 2002-03 a company— | 15 |
(a) granted a share option in respect of which tax might have become | |
chargeable under section 135 of ICTA, | |
(b) allotted or transferred shares on the exercise of such a share option, | |
(c) received notice of the assignment of such a share option, or | |
(d) provided a benefit in money or money’s worth— | 20 |
(i) for the assignment of such a share option, | |
(ii) for the release in whole or in part of such a share option, | |
(iii) for or in connection with a failure, or undertaking not, to | |
exercise such a share option, or | |
(iv) for or in connection with the grant of, or an undertaking to | 25 |
grant, a right to acquire shares or an interest in shares to | |
which such a share option relates. | |
(2) Section 486 (duty to notify matters relating to share options) applies in | |
relation to the matter subject to the following provisions. | |
(3) The particulars required by section 486(2) must be provided to the Inland | 30 |
Revenue before 7th July 2003. | |
(4) However, no particulars of the provision need be provided by a company | |
under section 486 if the company has already given particulars of it under— | |
(a) section 136(6) of ICTA (which made provision corresponding to | |
section 486 for tax years before 2003-04), or | 35 |
(b) paragraph 2 of Schedule 14 to FA 2000 (which made provision | |
corresponding to paragraph 44 of Schedule 5 for tax years before | |
2003-04). | |
Approved share incentive plans | |
68 (1) This paragraph applies where, immediately before 6th April 2003, an | 40 |
employee share ownership plan was approved under Schedule 8 to FA 2000 | |
(employee share ownership plans). | |
(2) On and after that date the plan is to be treated as a share incentive plan (or | |
“SIP”) approved by the Inland Revenue under Schedule 2 to this Act. | |
(3) Sub-paragraph (2) has effect even if the provisions of the plan do not wholly | 45 |
conform with the provisions of Schedule 2 to this Act, but it has effect | |
without prejudice to— | |
| |
| |
|
| |
| |
(a) paragraphs 83 and 84 of that Schedule (withdrawal of approval), | |
(b) paragraphs 89 and 90 of that Schedule (termination of plan), and | |
(c) any alteration of the plan. | |
(4) For the purposes of paragraph 84(1)(a) of Schedule 2, as it applies to the plan, | |
nothing is to be regarded as a disqualifying event because of a contravention | 5 |
of any of the requirements of that Schedule if the requirement in question | |
does not correspond to any of the requirements of Schedule 8 to FA 2000. | |
(5) Nothing in this Act affects the validity of— | |
(a) any provision of the plan which was included in it at any time before | |
6th April 2003 in accordance with the provisions of Schedule 8 to FA | 10 |
2000 as then in force, or | |
(b) any award of shares under the plan which was made at any such | |
time in accordance with the provisions of that Schedule as then in | |
force. | |
(6) In this paragraph— | 15 |
“award of shares” means the appropriation of shares to, or the | |
acquisition of shares on behalf of, a person; | |
“employee share ownership plan” has the meaning given by | |
paragraph 1(1) of Schedule 8 to FA 2000. | |
69 (1) Any reference in any enactment, instrument or document— | 20 |
(a) to an employee share ownership plan, or | |
(b) to an employee share ownership plan approved under Schedule 8 to | |
FA 2000, | |
is to be read as including, in relation to times after 5th April 2003, a reference | |
to a share incentive plan or to a share incentive plan approved under | 25 |
Schedule 2 to this Act. | |
(2) Any reference in any enactment, instrument or document— | |
(a) to a share incentive plan (or SIP), or | |
(b) to a share incentive plan (or SIP) approved under Schedule 2 to this | |
Act, | 30 |
is to be read as including, in relation to times before 6th April 2003, a | |
reference to an employee share ownership plan or to an employee share | |
ownership plan approved under Schedule 8 to FA 2000. | |
(3) Accordingly any reference in the SIP code to shares awarded under an | |
approved SIP is to be read as including, in relation to times before 6th April | 35 |
2003, a reference to shares awarded under a plan approved under Schedule | |
8 to FA 2000. | |
(4) Any reference in a plan within paragraph 68(1) to a person chargeable to tax | |
under Case I of Schedule E is to be read as including, in relation to times after | |
5th April 2003, a reference to a person whose earnings fall within paragraph | 40 |
8(2) of Schedule 2 to this Act. | |
(5) This paragraph— | |
(a) is without prejudice to Part 1 of this Schedule, and | |
(b) applies only in so far as the context permits. | |
(6) In this paragraph— | 45 |
“awarded” means appropriated to, or acquired on behalf of, a person; | |
“employee share ownership plan” has the same meaning as in | |
paragraph 68. | |
| |
| |
|
