Taxation of Chargeable Gains Act 1992 Schedule 7D paragraph 3

Participant absolutely entitled as against trustees

Paragraph 3 establishes that, for capital gains tax purposes, a participant in a share incentive plan is treated as being absolutely entitled to any shares awarded to them, as against the trustees of the plan.

• Any shares awarded to a participant under a share incentive plan are covered by this rule.
• For capital gains tax purposes, the participant is treated as absolutely entitled to those shares as against the trustees.
• This means the participant is regarded as the true beneficial owner of the shares for CGT purposes, even though the trustees may hold legal title.
• This treatment applies regardless of any contrary provisions in the plan rules or the trust instrument.