Skip to main content
Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 24 December 2008 - onwards

12. Amendment of Chapter 5 (miscellaneous charging provisions) of Part 5 of Principal Act.

(1) Chapter 5 of Part 5 of the Principal Act is amended by inserting the following after section 128C:

"Tax treatment of directors of companies and employees who acquire restricted shares.

128D.— (1) In this section—

‘ director ' and ‘ employee ' have the meanings, respectively, given to them by section 770(1);

‘ employer ' means the company in which the director or employee holds his or her office or employment;

‘ market value ' shall be construed in accordance with section 548;

‘ restricted shares ' shall be construed in accordance with subsection (3);

‘ shares ' includes stock;

‘ specified period ' has the same meaning as in subsection (3)(a).

(2) Subject to subsection (7), this section applies where—

(a) a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company,

(b) the shares are shares in the company in which the director or employee holds his or her office or employment or in a company which has control (within the meaning of section 432) of that company, and

(c) at the time of acquisition, the shares are restricted shares.

(3) For the purposes of this section, shares are restricted shares if—