Taxation of Chargeable Gains Act 1992 Schedule 7C paragraph 2

Conditions relating to the disposal

Schedule 7C paragraph 2 sets out the four conditions that must be met in relation to the disposal of shares to the trustees of a Share Incentive Plan in order for rollover relief to apply.

• At the time of disposal, the plan must be an approved Schedule 2 Share Incentive Plan under the Income Tax (Earnings and Pensions) Act 2003
• The shares disposed of must meet the requirements for types of shares that may be awarded under such a plan, but without the usual requirement for the shares to be listed or in a company controlled by a listed company
• At some point during the entitlement period, the plan trustees must hold at least 10% of the company's ordinary share capital, carrying at least 10% of distributable profits and 10% of assets available on a winding up
• Throughout the proscribed period, there must be no unauthorised arrangements allowing the claimant or a connected person to acquire shares or any interest in shares back from the plan trustees