BIM44251 - Specific deductions: employee share schemes: providing shares to employees: Share Incentive Plans: introduction: contents

S488-S515, Sch2 Income Tax (Earnings and Pensions) Act 2003

Share Incentive Plans (SIPs) are 바카라 사이트˜all employee바카라 사이트™ share award plans introduced in 2000. They were originally known as All Employee Share Ownership Plans (AESOPs).

Before 6th April 2014, the Employee Shares and Securities Unit dealt with the approval of schemes and notified offices dealing with participating companies when schemes were approved. From 6th April 2014, this is no longer a requirement; the scheme organiser can self-certify that the scheme meets the necessary conditions to be a Schedule 2 SIP and makes a declaration to HMRC, see etassum11300

Under SIP schemes:

  • companies can give up to £3600 worth of 바카라 사이트˜free shares바카라 사이트™ a year to each employee;
  • employees can buy up to £1800 worth of 바카라 사이트˜partnership shares바카라 사이트™ a year;
  • companies can reward this commitment by giving up to 2 바카라 사이트˜matching shares바카라 사이트™ for each partnership share an employee buys;
  • 바카라 사이트˜dividend shares바카라 사이트™ can be purchased using money from dividends received in respect of plan shares.

The following paragraphs give guidance on deductions for trading companies for contributions to trusts set up in conjunction with Schedule 2 SIPs. The statutory rules provide also for a deduction in computing the profits of a property business or as management expenses of a company with investment business.

BIM44253 General rules
BIM44255 Special rules for trusts acquiring 10 of ordinary share capital