Introduction Details of the Schedule Part 1: Income tax treatment of employee shareholder shares
2.Part 1 of the Schedule amends provisions within the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
3.Paragraph 2 amends section 19(2) of ITEPA to include an amount treated as earnings of an employee shareholder under new section 226A of ITEPA within rules that determine when non-money earnings are treated as having been received for relevant tax purposes.
4.Paragraph 3 introduces new sections 226A to 226D of ITEPA. They provide for the income tax treatment of employee shareholder shares, and for the £2,000 payment an employee shareholder is deemed to have made for shares in certain circumstances.