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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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511A Shares acquired from an employee share ownership trust.

(1) Where, on or after the date of the passing of the Finance Act, 1998, the trustees of an approved scheme make an appropriation of shares to which section 510(3) applies to a participant and the conditions mentioned in subsection (2) are satisfied, then, for the purposes of this Chapter as it applies to those shares—

(a) the period of retention shall end on, and

(b) the release date shall be,

the day following the day on which the shares were appropriated to the participant.

(2) The conditions referred to in subsection (1) are that—

(a) the shares concerned were transferred to the trustees of the approved scheme concerned by the trustees of an employee share ownership trust to which section 519 applies,

(b) immediately prior to the transfer referred to in paragraph (a), the shares had been held in that employee share ownership trust for a period of not less than 3 years, and

(c) the participant concerned was a beneficiary (within the meaning of paragraph 11 [2]>or paragraph 11A, as the case may be,<[2] of Schedule 12) under that employee share ownership trust at all times during the period of 3 years ending on the date on which the shares were appropriated to him or her.

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(3) Subject to subsection (5), subsection (4) shall apply where—

(a) the trustees of an approved scheme make an appropriation to a participant of shares to which section 510(3) applies, and

(b) the shares concerned were transferred to those trustees by the trustees of an employee share ownership trust to which section 519 applies.

(4) For the purposes of this Chapter as it applies to the shares referred to in subsection (3), where this subsection applies—

(a) the period of retention shall end—

(i) where, immediately prior to the transfer referred to in subsection (3)(b), the shares concerned had been held in the employee share ownership trust for a period (in subsection (5) referred to as “the first period”) of less than 2 years, on the day following the day on which a period, being a period equivalent in length to the difference between 2 years and the length of the period for which the shares had been so held, has elapsed since the shares were appropriated to the participant, or

(ii) where, prior to the transfer referred to in subsection (3)(b), the shares concerned had been held in the employee share ownership trust for a period (in subsection (5) referred to as “the second period”) of 2 years or more, the day following the day on which the shares were appropriated to the participant,

and

(b) where, immediately prior to the transfer referred to in subsection (3)(b), the shares concerned had been held in the employee share ownership trust for a period (in subsection (5) referred to as “the third period”) of less than 3 years, the release date shall be the day following the day on which a period, being a period equivalent in length to the difference between 3 years and the length of the period for which the shares had been so held, has elapsed since the shares were appropriated to the participant.

(5) Subsection (4) shall not apply unless the participant concerned was a beneficiary (within the meaning of paragraph 11 [3]>or paragraph 11A, as the case may be,<[3] of Schedule 12) under the employee share ownership trust at all times during—

(a) the first period or the second period, as may be appropriate, and

(b) the third period.

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511A Shares acquired from an employee share ownership trust.

(1) This section applies where, on or after the passing of the Finance Act, 1998

(a) the trustees of an approved scheme make an appropriation of shares to which section 510(3) applies to a participant,

(b) the shares concerned had been transferred to the trustees of the approved scheme by the trustees of an employee share ownership trust to which section 519 applies, and

(c) the participant concerned was a beneficiary (within the meaning of paragraph 11 or 11A, as the case may be, of Schedule 12) under the employee share ownership trust concerned at all times (other than any period which forms part of the 30 day period referred to in paragraph 12A(b) of Schedule 11) during the period (in this section referred to as the “holding period”)—

(i) beginning on—

(I) the day the shares concerned were acquired by that employee share ownership trust, or

(II) if later, the day that participant last became such a beneficiary,

and

(ii) ending on the day those shares were appropriated to that participant.

(2) Where this section applies, then, notwithstanding section 511

(a) the period of retention, in relation to the participant and the shares concerned, ends—

(i) in the case where the holding period is 2 years or more, on the day following the end of the holding period, and

(ii) in any other case, on the day following the end of a period which, when added to the holding period, forms a period of 2 years, or, if it is earlier, on the date referred to in subparagraph (i), (ii) or (iii), as the case may be, of section 511(1)(a),

and

(b) the release date, in relation to the participant and the shares concerned, means—

(i) in the case where the holding period is 3 years or more, the day following the end of the holding period, and

(ii) in any other case, the day following the end of a period which, when added to the holding period, forms a period of 3 years.

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[1]

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Inserted by FA99 s69(1)(a)(ii). Shall apply as respects an appropriation of shares made by the trustees of an approved scheme on or after the date of the passing of this Act. FA99 25-03-99

[2]

[+]

Inserted by FA01 s17(1)(a)(i). Applies and has effect as respects a profit sharing scheme, or an employee share ownership trust, approved on or after 12 December 2000.

[3]

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Inserted by FA01 s17(1)(a)(ii). Applies and has effect as respects a profit sharing scheme, or an employee share ownership trust, approved on or after 12 December 2000.

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[-] [+]

Substituted by FA02 s13(1)(b). This section shall apply and have effect as on and from 16 April 2001.