SCHEDULES

SCHEDULE 2 U.K.Approved share incentive plans

Part 10 U.K.Approval of plans

Application for approval U.K.

81 (1) Where— U.K.

(a) a SIP has been established, and

(b) the company makes an application to [F1 an officer of Revenue and Customs] for approval of the plan,

[F1 an officer of Revenue and Customs] must approve the plan if [F2 the officer] [F3 is] satisfied that it meets the requirements of Parts 2 to 9 of this Schedule.

(2) An application for approval must—

(a) be in writing, and

(b) contain such particulars, and be supported by such evidence, as [F1 an officer of Revenue and Customs] may require.

(3) Once [F1 an officer of Revenue and Customs] [F4 has] decided whether or not to approve the plan, [F5 the officer] must give notice of [F6 the] decision to the company.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

F2 Words in Sch. 2 para. 81(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(j); S.I. 2005/1126, art. 2(2)(h)

F3 Word in Sch. 2 para. 81(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 121(a)(i); S.I. 2005/1126, art. 2(2)(h)

F4 Word in Sch. 2 para. 81(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 121(a)(ii); S.I. 2005/1126, art. 2(2)(h)

F5 Words in Sch. 2 para. 81(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(j); S.I. 2005/1126, art. 2(2)(h)

F6 Words in Sch. 2 para. 81(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(3)(a); S.I. 2005/1126, art. 2(2)(h)

Appeal against refusal of approval U.K.

82 (1) If [F1 an officer of Revenue and Customs] [F7 refuses] to approve the plan, the company may appeal F8 .... U.K.

(2) The notice of appeal must be given to [F1 an officer of Revenue and Customs] within 30 days after the date on which notice of [F9 the] decision is given to the company.

(3) [F10 If the appeal is notified to and allowed by the tribunal, the tribunal may direct] [F1 an officer of Revenue and Customs] to approve the plan with effect from a date specified by the [F11 tribunal].

(4) The date so specified must not be earlier than that of the application for approval.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

F7 Word in Sch. 2 para. 82(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 121(b); S.I. 2005/1126, art. 2(2)(h)

F8 Words in Sch. 2 para. 82(1) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 341(2)

F9 Words in Sch. 2 para. 82(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(3)(b); S.I. 2005/1126, art. 2(2)(h)

F10 Words in Sch. 2 para. 82(3) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 341(3)(a)

F11 Word in Sch. 2 para. 82(3) substituted (1.4.2009) by The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 341(3)(b)

Withdrawal of approval U.K.

83 (1) This paragraph applies if a disqualifying event (see paragraph 84) occurs in relation to an approved SIP. U.K.

(2) [F1 An officer of Revenue and Customs] may by a notice given to the company withdraw the approval with effect from—

(a) the time at which the disqualifying event occurred, or

(b) a later time specified by [F1 an officer of Revenue and Customs] in the notice.

(3) The withdrawal of approval of a SIP does not affect the operation of the SIP code in relation to shares awarded to participants in the plan before the time with effect from which approval was withdrawn.

(4) References in the SIP code to an approved SIP in relation to such shares are to a plan that was approved at the time when the shares were awarded.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

Disqualifying events for purposes of paragraph 83 U.K.

84 (1) The following are disqualifying events for the purposes of paragraph 83— U.K.

(a) a contravention in relation to the operation of the plan of any of the requirements of this Schedule, the plan itself or the plan trust;

(b) an alteration being made in a key feature of the plan, or in the terms of the plan trust, without the approval of [F1 an officer of Revenue and Customs];

(c) if the plan provides for performance allowances in accordance with paragraph 42 (method two), the setting of performance targets in respect of an award of shares which are not consistent targets (within the meaning given by paragraph 42(6));

[F12 (d) an alteration being made—

(i) in the share capital of a company any of whose shares are subject to the plan trust, or

(ii) in the rights attaching to any shares of such a company,

that materially affects the value of shares that are subject to the plan trust;]

(e) shares of a class of which shares [F13 are subject to the plan trust] receiving different treatment in any respect from the other shares of that class;

(f) the trustees failing to furnish any information which they are required to furnish under paragraph 93 (power to require information);

(g) the company, or (in the case of a group plan) a company which is or has been a constituent company, failing to furnish any information which it is required to furnish under that paragraph.

(2) For the purposes of sub-paragraph (1)(b) [F1 an officer of Revenue and Customs] may not withhold F14 ... approval unless it appears to [F15 the officer] at the time in question that the plan as proposed to be altered would not then be approved on an application under paragraph 81.

(3) Sub-paragraph (1)(e) applies, in particular, to different treatment in respect of—

(a) the dividend payable,

(b) repayment, [F16 or]

F17 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) any offer of substituted or additional shares, securities or rights of any description in respect of the shares.

(4) Sub-paragraph (1)(e) does not, however, apply where the difference in treatment arises—

(a) from a key feature of the plan, or

(b) from any of the participants' shares being subject to any [F18 restriction].

(5) Nor does it apply as a result only of the fact that shares which have been newly issued receive, in respect of dividends payable with respect to a period beginning before the date on which they were issued, treatment less favourable than that accorded to shares issued before that date.

(6) For the purposes of this paragraph a “key feature” of a plan is a provision of the plan that is necessary in order to meet the requirements of this Schedule.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

F12 Sch. 2 para. 84(1)(d) substituted (with effect in relation to events taking place on or after 24.3.2010 in accordance with s. 42(7) of the amending Act) by Finance Act 2010 (c. 13), s. 42(2)

F13 Words in Sch. 2 para. 84(1)(e) substituted (with effect in relation to events taking place on or after 24.3.2010 in accordance with s. 42(7) of the amending Act) by Finance Act 2010 (c. 13), s. 42(3)

F14 Word in Sch. 2 para. 84(2) repealed (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(4)(a), Sch. 5; S.I. 2005/1126, art. 2(2)(h)(i)

F15 Words in Sch. 2 para. 84(2) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(k); S.I. 2005/1126, art. 2(2)(h)

F16 Word in Sch. 2 para. 84(3) inserted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 53(2)(a)

F17 Sch. 2 para. 84(3)(c) and word omitted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 2 para. 53(2)(b)

F18 Word in Sch. 2 para. 84(4)(b) substituted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 53(3)

Appeal against withdrawal of approval U.K.

85 (1) This paragraph applies if a SIP has been approved by [F1 an officer of Revenue and Customs] and [F19 the officer] [F20 decides] — U.K.

(a) to withdraw approval of the plan, or

(b) to refuse approval under paragraph 84(1)(b) (approval of alteration of plan or plan trust), or

(c) to give a direction under [F21 section 998 of CTA 2009] (withdrawal of corporation tax deductions on withdrawal of approval).

(2) The company may appeal against the decision F22 ....

(3) The notice of appeal must be given to [F1 an officer of Revenue and Customs] within 30 days after the date on which notice of [F23 the officer's] decision is given to the company.

Textual Amendments

F1 Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)

F19 Words in Sch. 2 para. 85(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(1)(l); S.I. 2005/1126, art. 2(2)(h)

F20 Word in Sch. 2 para. 85(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 121(c); S.I. 2005/1126, art. 2(2)(h)

F21 Words in Sch. 2 para. 85(1)(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 557 (with Sch. 2 Pts. 1, 2)

F22 Words in Sch. 2 para. 85(2) omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 342

F23 Words in Sch. 2 para. 85(3) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 103(2)(b); S.I. 2005/1126, art. 2(2)(h)