Taxes Consolidation Act 1997 Schedule 12 paragraph 18

Timing of acquisition, transfer, and retention

Paragraph 18 of Schedule 12 sets out the rules that an approved profit sharing scheme trust deed must include regarding when trustees are treated as acquiring, transferring, or retaining securities.

• The trust deed must provide that trustees acquire securities when they become entitled to them, transfer them when another person becomes entitled, and retain them while they remain entitled.
• Where securities are acquired through a company reorganisation, reduction of share capital, or share-for-share exchange on amalgamation, the trustees are treated as having acquired the new securities at the time they acquired the original or exchanged shares.
• Where trustees agree to acquire securities, they become entitled at the time the agreement is made, or if the agreement is conditional, when those conditions are satisfied — not on any later transfer date.
• Where trustees agree to transfer securities to another person, that person becomes entitled when the agreement is made, not on a later transfer date.