Tax Advantaged Share Schemes SIP

The Share Incentive Plan is an ‘all employee’ tax-advantaged share plan which brings together a variety of types of award. Participation in a SIP must be offered to all eligible employees (the conditions for eligibility are set out in the relevant legislation). Employees can be permitted to purchase shares out of pre-tax income, the company can award additional ‘matching’ shares, the company may award free shares (often dependent upon performance conditions being satisfied), and dividends may be reinvested. Shares acquired under a SIP must be held in a UK resident trust. SIPs are generally operated by larger listed companies.

Tax Advantaged Share Schemes SIP

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