Income Tax (Earnings and Pensions) Act 2003 section 421G

Exclusions: approved plan or scheme securities

Section 421G excludes certain shares and securities acquired through tax-approved employee share plans or schemes from the special tax rules that apply to employment-related securities.

• Shares acquired under approved Share Incentive Plans (SIPs), Save As You Earn (SAYE) option schemes, Company Share Option Plans (CSOPs), or Enterprise Management Incentive (EMI) schemes are excluded from the employment-related securities rules in Chapters 2 to 5 of Part 7.
• The exclusion applies specifically because these approved plans and schemes have their own separate tax treatment set out elsewhere in the legislation.
• The exclusion was introduced by the Finance Act 2003 and subsequently amended by the Finance Act 2004 to reflect the renaming and restructuring of the approved share scheme provisions.
• Where securities fall within this exclusion, any tax charges or reliefs are governed by the specific rules for the relevant approved plan or scheme, rather than the general employment-related securities provisions.

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