Commentary

E1.419 Dividends under share incentive plans—shares ceasing to be SIP shares

Personal and employment tax

E1.419 Dividends under share incentive plans—shares ceasing to be SIP shares

E1.419 Dividends under share incentive plans—shares ceasing to be SIP shares

If shares acquired by trustees by reinvestment of dividends cease to be subject to the SIP within three years of acquisition by the trustees, the employee is charged to tax on a distribution deemed to have been made to him in the tax year in which the shares ceased to be within the SIP. The charge is on the amount of the cash dividend used to acquire the shares, irrespective of their value (unless the shares ceased to be within the SIP because of a requirement for them to

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