Section 186 | Approved Profit Sharing Schemes | Income And Corporation Taxes Act 1988 C1

186 Approved profit sharing schemes

Income and Corporation Taxes Act 1988 (1988 c 1) | Legislation

186 Approved profit sharing schemes

(1) The provisions of this section apply where, after 5th April 1979 [and before 1st January 2003], the trustees of an approved profit sharing scheme appropriate shares—

(a) which have previously been acquired by the trustees, and

(b) as to which the conditions in Part II of Schedule 9 are fulfilled,

to an individual who participates in the scheme (“the participant”).

(2) Notwithstanding that, by virtue of such an appropriation of shares as is mentioned in subsection (1) above, the beneficial interest in the shares passes to the participant to whom they are appropriated—

(a) the value of the shares at the time of the appropriation shall be treated as not being income of his chargeable to tax under Schedule E; and

(b) he shall not be chargeable to income tax under that Schedule by virtue of [section 78 or 79 of the Finance Act 1988 in respect of the shares] or by virtue of section 162 in any case where the shares are appropriated to him at an under-value within the meaning of that section.

(3) Subject to the provisions of this section and paragraph 4 of Schedule 10, if, in respect