Income Tax (Trading and Other Income) Act 2005 section 392

SIP shares: introduction

Section 392 introduces special rules about the income tax charge on dividends from shares held in a Share Incentive Plan (SIP), and sets out the conditions under which those rules apply.

• Sections 393 to 395 contain special rules about the tax charge on dividends from shares awarded under a Schedule 2 Share Incentive Plan
• These rules only apply where the individual was subject to UK employment income tax (or, before April 2003, Schedule E tax) on the employment through which they qualified for the plan
• Condition A covers shares awarded on or after 6 April 2003, where earnings from the qualifying employment were (or would have been) taxable general earnings under ITEPA 2003
• Condition B covers shares awarded before 6 April 2003, where the individual was liable to tax under the former Schedule E in respect of the relevant employment