Share Incentive Plan (SIP) ― qualifying conditions for employees

Produced by Tolley in association with

Employment Tax

Guidance

As the share incentive plan (SIP) is designed to be an all-employee plan, the employee qualifying conditions are not particularly onerous ― the qualifying conditions for the company operating the SIP and the parameters for the design of the plan itself are much stricter. ITEPA 2003, Sch 2, paras 13 to 18A (Part 3) establishes the eligibility of individual employees to receive SIP awards.

All-employee plan

With some specific exceptions, all employees must be offered SIP awards on the same terms. The main exception is that the number of free shares offered to each employee can be calculated by reference to existing remuneration, length of service and/or hours worked. Senior employees or directors cannot have priority to SIP awards.

No loans

No loans can be made to employees to facilitate SIP awards.

Eligibility at the appropriate time

Before any SIP award

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Helen Wood

, Employment Tax

Popular Articles

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more

Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more

UU��ֱ��