Income Tax (Earnings and Pensions) Act 2003 section 54-61

Post-acquisition benefits from shares

Sections 54 to 61 set out transitional rules governing whether the post-acquisition benefits charge applies to shares or interests in shares acquired before 26 October 1987, and modify the way the charge operates for certain earlier acquisitions.

• The post-acquisition benefits charge generally does not apply to shares acquired before 26 October 1987, unless the company was not a dependent subsidiary on that date
• Where the charge does apply to pre-26 October 1987 shares, the removal or variation of a restriction is not a chargeable event if the old FA 1973 disposal-to-nominees rule would have applied
• For acquisitions before 6 April 2003, the exclusion from the charge is determined by whether the person was chargeable under the old Case I of Schedule E, rather than by the current earnings-based test
• Certain provisions of the charge do not apply at all to acquisitions made before 16 January 1991