Under the Rules of the Scheme, shares which were held in trust for three years, and were then transferred to EasyShare accounts without an income tax liability.
History - The following chart shows the scheme history
The Rights Issue in May 2001 affected the shares appropriated under this Scheme.
Participants chose to either purchase additional shares, sell their rights (to buy additional shares), or sell enough rights to finance the purchase of the remaining shares.
Any additional shares purchased form part of the holding of shares in trust and were subject to the same retention periods as the underlying shares to which they relate.
Therefore when the shares are released from trust and transferred to EasyShare accounts, the number of shares transferred may differ from the number originally appropriated.
BT's restructuring in November 2001 also affected the Scheme. Each BT share was automatically converted to one BT and one mmO2 share. When the shares were released from trust they were placed in the respective companies' EasyShare accounts.
For CGT calculations, the base cost of BT shares is calculated by multiplying the Initial market value of the shares by 77.544%, and the base cost of mmO2 shares is calculated by multiplying the Initial market value of the shares by 22.456%.