Taxes Consolidation Act 1997 Schedule 11 paragraph 16

Trustees may not disposal of allocated shares during retention period

Schedule 11 paragraph 16 restricts the trustees of an approved profit sharing scheme from disposing of shares allocated to participants, both during and after the retention period.

• During the retention period, the trustees are prohibited from disposing of any scheme shares, except in limited circumstances such as share exchanges on a takeover or merger.
• After the retention period but before the release date, the trustees may only dispose of shares if directed to do so by the participant or a person holding a beneficial interest in the shares.
• Any disposal after the retention period but before the release date must not breach the participant's obligations regarding income tax on the locked-in value or the requirement to obtain the best consideration for the shares.
• These restrictions must be written into the trust instrument governing the scheme.