Share incentive plans

Share incentive plans guidance:

ARCHIVED: This archived Practice Note provides background reading on the main differences between the SIP guidance in ESSUM and where it can now be found in ETASSUM. It...

Practice Note

Companies in both the US and the UK have a long history of involving employees in equity ownership, and both countries have provided tax breaks and implemented other...

Practice Note

HMRC consists of specialist departments dealing with specific areas of employment related securities (ERS) and share schemes. The specific HMRC department to contact...

Practice Note

What is a joint venture? A joint venture (JV) is a commercial arrangement entered into by two or more independent parties whereby each party agrees to develop, often for...

Practice Note

Summary of tax treatment The tax benefits available under a ‘Schedule 2 share incentive plan (SIP)’ are significant, both for the employee and the employer. Employees who...

Practice Note

Why do you need a valuation for SIP purposes? There are a number of different circumstances in which it will be necessary to value the shares subject to a share incentive...

Practice Note

The SIP is the only tax advantaged share plan under which participants can potentially enjoy unlimited gains in the value of their shares free of income tax, National...

Practice Note

The impact of capital reorganisations, takeovers and demergers on awards made under a share incentive plan (SIP) is more complex than other tax-advantaged plans as...

Practice Note

The company establishing a SIP The company establishing the share incentive plan (SIP) does not have to be the company whose shares are awarded. However: • the shares to...

Practice Note

The share incentive plan (SIP) legislation is very prescriptive in relation to the nature of the trust that is required to operate in conjunction with a SIP, and the...

Practice Note

This note covers the following topics: • the law governing share incentive plans' (SIPs) self-certification, registration and filing requirements • the HMRC approval...

Practice Note

Terminology Schedule 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) uses the phrase an ‘award of shares’ to indicate shares that are either...

Practice Note

Individuals may, at any one time, be employed by more than one employer, usually on a part-time basis for each company. These companies may sit in the same group or may...

Practice Note

With effect from 6 April 2014, the process for establishing a tax-advantaged share plan (CSOP, SIP and SAYE) changed dramatically. This Practice Note looks at the system...

Practice Note

Schedule 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) uses the phrase an ‘award of shares’ to identify shares that are either appropriated to...

Practice Note

This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of: • the types of award that can be made under a...

Practice Note