Taxation of Chargeable Gains Act 1992 section 238A

Share schemes and share incentives

Section 238A introduces Schedule 7D to the Taxation of Chargeable Gains Act 1992, which sets out the capital gains tax rules that apply to shares acquired through certain tax-advantaged employee share schemes.

• Schedule 7D contains the capital gains tax provisions for tax-advantaged employee share schemes
• Part 1 of the schedule covers Share Incentive Plans (SIPs), which allow employers to give employees shares in a tax-efficient way
• Part 2 covers Save As You Earn (SAYE) option schemes, where employees save regularly and can use their savings to buy shares at a discounted price
• Part 3 covers Company Share Option Plans (CSOPs), which grant employees options to buy shares at a pre-agreed price