Section 488 — Income Tax Act 2007: Application of section 479 to trustees of Schedule 2 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.