Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 493: No charge on acquisition of dividend shares
2027.This section is the last of four that deal with the tax advantages connected with the award of shares. It provides that a scheme participant is not liable to income tax on the amount applied by the trustees in acquiring dividend shares on the participant’s behalf.
2028.This section derives from paragraph 89 of Schedule 8 to FA 2000. Subsection (1) reorganises the material in paragraph 89(1); in subsection (2) the word “amount” replaces the words “amounts of dividends”; and subsections (3) to (5) vary the order of material drawn from paragraph 89(3) and (4) of Schedule 8 to FA 2000.