Part 5, Share Incentive Plans: Partnership Shares
47.Paragraph 78 introduces amendments to paragraph 52 of Schedule 2 of ITEPA in relation to the allocation of SIP shares where a company allows employees to purchase these shares by deduction from salary over a period of time not exceeding 12 months, referred to in the legislation as an 'accumulation period'.
48.Paragraph 79 inserts new sub-paragraphs (2A), (3A) and (3B) of paragraph 52 of Schedule 2, to introduce a revised method for determining the number of shares awarded to an employee when applying money deducted in an accumulation period. Companies are allowed to make a choice between three possible methods of valuing the shares in these cases; and whichever method is chosen must be specified in the company’s partnership share agreement.
49.Paragraph 80 amends sub-paragraph 3(c) of paragraph 75 of Schedule 2 to introduce a requirement for the SIP trustees to inform scheme participants of the basis on which the number of shares allocated was determined.
50.Paragraph 81 provides that these changes take effect from the date the legislation receives Royal Assent, and SIP trust instruments in force on that date have effect as if they included the modifications made by paragraph 79.
