SCHEDULES

SCHEDULE 2... share incentive plans

Part 1Introduction

Introduction to Schedule 2 share incentive plans (SIPs)

1

F1A1

For the purposes of the SIP code a share incentive plan (a “SIP”) is a Schedule 2 SIP if the requirements of Parts 2 to 9 of this Schedule are met in relation to the SIP.

(3)

The requirements consist of general requirements (see Part 2) and requirements as to—

  • the eligibility of individuals (see Part 3),

  • the types of shares that may be awarded (see Part 4),

  • free shares (see Part 5),

  • partnership shares (see Part 6),

  • matching shares (see Part 7),

  • cash dividends and dividend shares (see Part 8), and

  • the trustees (see Part 9).

F2(4)

Sub-paragraph (A1) is subject to Part 10 of this Schedule which—

(a)

requires notice of a plan to be given to Her Majesty's Revenue and Customs (“HMRC”) in order for the plan to be a Schedule 2 SIP (see paragraph 81A(1)),

(b)

provides for a plan in relation to which such notice is given to be a Schedule 2 SIP (see paragraph 81A(4)), and

(c)

gives power to HMRC to enquire into a plan and to decide that the plan should not be a Schedule 2 SIP (see paragraphs 81F to 81I).

F3(5)

Sub-paragraph (A1) is also subject to Part 10A of this Schedule (disqualifying events).