C1Part 7F1Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Chapter 6Approved share incentive plans
Introduction
488Approved share incentive plans (SIPs)
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”).
- a
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.
Pt. 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)