Part 7

Employment income: income and exemptions relating to securities
Chapter 6

... share incentive plans

Introduction

... Share incentive plans (SIPs)
488
1
This Chapter provides—
a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
for exemptions from income tax in connection with shares obtained under share 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.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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—
...
- “PAYE deduction” means a deduction required by PAYE regulations;
- “
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—
  1. for shares to be appropriated to employees without payment (“free shares”), or
  2. 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.
Words in s. 488(4) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 3(5)(a), 89 (with Sch. 8 paras. 90-96)
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
S. 488(1)(a) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 3(3)(a), 89 (with Sch. 8 paras. 90-96)
Word in s. 488 heading omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 3(2), 89 (with Sch. 8 paras. 90-96)
Words in s. 488(4) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 3(5)(b), 89 (with Sch. 8 paras. 90-96)
Words in s. 488(1)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 3(3)(b), 89 (with Sch. 8 paras. 90-96)
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)
S. 488(2) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 3(4), 89 (with Sch. 8 paras. 90-96)
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)