Part 7U.K.[F1Employment income: income and exemptions relating to securities]

Textual Amendments

F1Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)

Modifications etc. (not altering text)

C1Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)

(1)This Chapter provides—

(a)for the approval of share incentive plans (“SIPs”) by [F2an officer of Revenue and Customs] ,

(b)for exemptions from income tax in connection with shares obtained under those plans,

(c)for amounts to count as employment income in certain circumstances in connection with such plans, and

(d)for the making of PAYE deductions in connection with such amounts.

(2)Schedule 2 contains the requirements that have to be met for a SIP to be approved, together with—

(a)the approval procedure, and

(b)provisions relating to the administration and operation of a SIP.

(3)The provisions of—

(a)this and the following sections of this Chapter,

(b)Schedule 2, and

(c)the provisions mentioned in section 515 (tax advantages and charges under other Acts),

together constitute “the SIP code”.

(4)In the SIP code—

“approved” means approved by [F2an officer of Revenue and Customs] under Schedule 2, and “approval” has a corresponding meaning;
“PAYE deduction” means a deduction required by PAYE regulations;
a “share incentive plan” (or “SIP” for short) means a plan established by a company providing—
(a)
for shares to be appropriated to employees without payment (“free shares”), or
(b)
for shares to be acquired on behalf of employees out of sums deducted from their salary (“partnership shares”).

(5)Other expressions used in the SIP code and contained in the index at the end of Schedule 2 have the meaning indicated by the index.

Textual Amendments