Income Tax (Earnings and Pensions) Act 2003
Sections and provisions with full text and the judgments that cite each one.
Section 500 — Operation of tax charges in connection with Schedule 2 SIP
Operation of tax charges in connection with Schedule 2 SIP 500 1 Sections 501 to 508 apply for income tax purposes in connection with shares awarded under a Schedule 2 SIP. 2 But those sections do…
Section 501 — Charge on capital receipts in respect of plan shares
Charge on capital receipts in respect of plan shares 501 1 This section applies if conditions A and B are met. 2 Condition A is that a capital receipt is received by a participant in respect of, or…
Section 502 — Meaning of “capital receipt” in section 501
Meaning of “capital receipt” in section 501 502 1 This section applies for determining whether any money or money’s worth is a “ capital receipt ” for the purposes of section 501. 2 The general rule…
Section 503 — Charge on partnership share money paid over to employee
Charge on partnership share money paid over to employee 503 1 Any amount paid over to an individual under any of the provisions of Schedule 2 mentioned in subsection (2) counts as employment income…
Section 504 — Charge on cancellation payments in respect of partnership share agreement
Charge on cancellation payments in respect of partnership share agreement 504 1 This section applies if an individual who has entered into a partnership share agreement receives any money or money’s…
Section 505 — Charge on free or matching shares ceasing to be subject to plan
Charge on free or matching shares ceasing to be subject to plan 505 1 When free or matching shares cease to be subject to the plan, there may be an amount that counts as employment income of the…
Section 506 — Charge on partnership shares ceasing to be subject to plan
Charge on partnership shares ceasing to be subject to plan 506 1 When partnership shares cease to be subject to the plan, there may be an amount that counts as employment income of the participant…
Section 507 — 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…
Section 508 — Identification of shares ceasing to be subject to plan
Identification of shares ceasing to be subject to plan 508 1 For the purpose of determining any liability to tax arising by virtue of the SIP code in respect of any of a participant’s shares ceasing…
Section 509 — Modification of section 696 where charge on shares ceasing to be subject to plan
Modification of section 696 where charge on shares ceasing to be subject to plan 509 1 Where— a as a result of shares ceasing to be subject to a Schedule 2 SIP, there is an amount that counts as…
Section 510 — Payments by trustees to employer company on shares ceasing to be subject to plan
Payments by trustees to employer company on shares ceasing to be subject to plan 510 1 This section applies if, as a result of any shares (“the relevant shares”) ceasing to be subject to a Schedule 2…
Section 511 — PAYE deductions to be made by trustees on shares ceasing to be subject to plan
PAYE deductions to be made by trustees on shares ceasing to be subject to plan 511 1 This section applies if, as a result of any shares ceasing to be subject to a Schedule 2 SIP— a there is an amount…
Section 512 — Disposal of beneficial interest by participant
Disposal of beneficial interest by participant 512 1 This section applies if— a a participant (“P”) disposes of P’s beneficial interest in any of P’s plan shares to the trustees, and b the trustees…
Section 513 — Capital receipts: payments by trustees to employer company
Capital receipts: payments by trustees to employer company 513 1 This section applies if the trustees receive a sum of money which constitutes (or forms part of) a capital receipt which, by virtue of…
Section 514 — Capital receipts: PAYE deductions to be made by trustees
Capital receipts: PAYE deductions to be made by trustees 514 1 This section applies if— a the trustees receive a sum of money which constitutes (or forms part of) a capital receipt which, by virtue…
Section 515 — Tax advantages and charges under other Acts
Tax advantages and charges under other Acts 515 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SIPs are also dealt with in— a Part 1 of Schedule 7D to TCGA 1992 (which provides…
Section 516 — ... SAYE option schemes
... SAYE option schemes 516 1 This Chapter provides— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b for exemptions from income tax in connection with share options granted under…
Section 517 — Share options to which this Chapter applies
Share options to which this Chapter applies 517 1 This Chapter applies to a share option granted to an individual— a in accordance with the provisions of a Schedule 3 SAYE option scheme, and b by…
Section 518 — No charge in respect of receipt of option
No charge in respect of receipt of option 518 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 519 — No charge in respect of exercise of option
No charge in respect of exercise of option 519 1 No liability to income tax arises in respect of the exercise of the share option if— a the individual exercises it in accordance with the provisions…
Section 520 — No charge in respect of post-acquisition benefits
No charge in respect of post-acquisition benefits 520 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 521 — ... CSOP schemes
... CSOP schemes 521 1 This Chapter provides— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b for exemptions from income tax in connection with share options granted under CSOP…
Section 522 — Share options to which this Chapter applies
Share options to which this Chapter applies 522 1 This Chapter applies to a share option granted to an individual— a in accordance with the provisions of a Schedule 4 CSOP scheme, and b by reason of…
Section 523 — No charge in respect of receipt of option
No charge in respect of receipt of option 523 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 524 — No charge in respect of receipt of option
No charge in respect of receipt of option 524 1 No liability to income tax arises in respect of the exercise of the share option if— a the individual exercises it in accordance with the provisions of…
Section 525 — No charge in respect of post-acquisition benefits
No charge in respect of post-acquisition benefits 525 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 526 — Charge where option granted at a discount
Charge where option granted at a discount 526 1 This section applies if, at the time when the share option is granted to the individual, the aggregate of— a the amount or value of any consideration…
Section 527 — Enterprise management incentives: qualifying options
Enterprise management incentives: qualifying options 527 1 This Chapter provides— a for share options notified to an officer of Revenue and Customs to be qualifying options for the purposes of the…
Section 528 — No charge on receipt of qualifying option
No charge on receipt of qualifying option 528 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 529 — Scope of tax advantages: option must be exercised by the specified anniversary
Scope of tax advantages: option must be exercised by the specified anniversary 529 1 Sections 530 to 540 apply in connection with the exercise of a qualifying option. 2 But those sections only apply…
Section 530 — No charge on exercise of option to acquire shares at market value
No charge on exercise of option to acquire shares at market value 530 1 This section applies if the option is to acquire shares at not less than their market value— a at the time when the option is…
Section 531 — Limitation of charge on exercise of option to acquire shares below market value
Limitation of charge on exercise of option to acquire shares below market value 531 1 This section applies if the option is to acquire shares at less than their market value— a at the time when the…
Section 532 — Modified tax consequences following disqualifying events
Modified tax consequences following disqualifying events 532 1 This section applies where— a a disqualifying event (see section 533) occurs in relation to a qualifying option before the option is…
Section 533 — Disqualifying events
Disqualifying events 533 1 The following provisions deal with the events that are (or are to be treated as) disqualifying events in relation to a qualifying option— a section 534 (events relating to…
Section 534 — Disqualifying events relating to relevant company
Disqualifying events relating to relevant company 534 1 The following events relating to the relevant company are disqualifying events in relation to a qualifying option— a when the relevant company…
Section 535 — Disqualifying events relating to employee
Disqualifying events relating to employee 535 1 The following events relating to the employee are disqualifying events in relation to a qualifying option— a when the employee ceases to be an eligible…
Section 536 — Other disqualifying events
Other disqualifying events 536 1 The following are also disqualifying events in relation to a qualifying option— a any variation of the terms of the option whose effect is either— i to increase the…
Section 537 — Alterations of share capital for purposes of section 536
Alterations of share capital for purposes of section 536 537 1 This section has effect for the purposes of section 536(1)(b) and (c) (other disqualifying events: alterations of share capital of…
Section 538 — Share conversions excluded for purposes of section 536
Share conversions excluded for purposes of section 536 538 1 This section has effect for the purposes of section 536(1)(d) (other disqualifying events: share conversions). 2 A conversion of shares is…
Section 539 — CSOP and other options relevant for purposes of section 536
CSOP and other options relevant for purposes of section 536 539 1 This section has effect for the purposes of section 536(1)(e) (other disqualifying events: grant of CSOP option). 2 A “ relevant CSOP…
Section 540 — No charge on acquisition of shares as taxable benefit
No charge on acquisition of shares as taxable benefit 540 1 ... Chapter 3C of this Part (taxable benefits: notional loans in respect of acquisitions of shares) does not apply in relation to the…
Section 541 — Effects on other income tax charges
Effects on other income tax charges 541 1 Nothing in the EMI code affects— a the operation of Chapters 2 to 4 of this Part in relation to shares acquired under a qualifying option, or b the operation…
Section 542 — Exemption: offer made to public and employees
Exemption: offer made to public and employees 542 1 This section applies if— a there is a genuine offer to the public of shares in a company at a fixed price or by tender, b a director or employee of…
Section 543 — Discount not covered by exemption in section 542
Discount not covered by exemption in section 542 543 1 This section applies if the total of— a the price payable by the director or employee for the shares of the company allocated to the director or…
Section 544 — Exemption: different offers made to public and employees
Exemption: different offers made to public and employees 544 1 This section applies if— a there is a genuine offer to the public of a combination of shares in two or more companies at a fixed price…
Section 545 — Discount not covered by exemption in section 544
Discount not covered by exemption in section 544 545 1 This section applies if the total of— a the price payable by the director or employee for the shares of a company allocated to the director or…
Section 546 — Meaning of being entitled “on similar terms”
Meaning of being entitled “on similar terms” 546 1 This section applies for the purposes of sections 542(5) and 544(5) (condition that entitlements to allocation of priority shares must be on similar…
Section 547 — Meaning and amount or value of “registrant discount”
Meaning and amount or value of “registrant discount” 547 1 For the purposes of this Chapter there is a “registrant discount” in respect of the shares of a company if conditions A to C are met. 2…
Section 548 — Minor definitions
Minor definitions 548 1 In this Chapter— “ director ” means— in relation to a company whose affairs are managed by a board of directors or similar body, a member of that body, in relation to a…
Section 549 — Application of this Chapter
Application of this Chapter 549 1 This Chapter applies for the purposes of any listed provision in circumstances where— a an individual (“B”) is interested as a beneficiary of an employee benefit…