Section 507 — Income Tax (Earnings and Pensions) Act 2003: Charge on disposal of beneficial interest during holding period

Charge on disposal of beneficial interest during holding period 507 1 This section applies if—

a free or matching shares cease to be subject to the plan at any time during the holding period for those shares, and b this occurs as a result of the participant assigning, charging or otherwise disposing of the participant’s beneficial interest in the shares in breach of obligations under paragraph 36(1)(b) of Schedule 2 (restrictions relating to disposals within holding period).

2 The market value of the shares at the date when they cease to be subject to the plan counts as employment income of the participant for the relevant tax year.

3 The “ relevant tax year ” is the tax year in which that date falls.