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 6F7... share incentive plans
Word in Pt. 7 Ch. 6 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 2, 89 (with Sch. 8 paras. 90-96)
Introduction
488F8... Share incentive plans (SIPs)
1
This Chapter provides—
F2a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
for exemptions from income tax in connection with shares obtained under F3share incentive plans (“SIPs”) which are Schedule 2 SIPs,
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.
F42
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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—
F5...
“PAYE deduction” means a deduction required by PAYE regulations;
F6“Schedule 2 SIP” is to be read in accordance with paragraph 1 and Part 10 of Schedule 2;
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)