Taxation of Chargeable Gains Act 1992 Schedule 7D paragraph 1

Introductory

Schedule 7D paragraph 1 introduces the capital gains tax rules that apply to shares held under a Schedule 2 Share Incentive Plan (SIP) and establishes how key terms used throughout this part of the Schedule should be interpreted.

• This part of Schedule 7D sets out the capital gains tax treatment of shares held within a Schedule 2 Share Incentive Plan (referred to as "the plan").
• The provisions form part of the broader SIP code established by section 488 of the Income Tax (Earnings and Pensions) Act 2003, ensuring consistency between income tax and capital gains tax rules for SIPs.
• Any specialised terms used in this part of the Schedule carry the same meaning as defined in the index to Schedule 2 of ITEPA 2003, so that terminology is applied consistently across the SIP legislation.
• For certain provisions dealing with shares ceasing to be subject to the plan and forfeited shares, "market value" is determined using the specific SIP definition in paragraph 92 of Schedule 2 to ITEPA 2003, which takes priority over the general market value rules in Part 8 of TCGA 1992.