Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 16

Shares must be ordinary shares of certain companies

Paragraph 16 specifies which companies' ordinary shares qualify as eligible shares under a Share Incentive Plan (SIP).

• Eligible shares must be ordinary shares, not preference shares or other share classes
• They may be shares in the scheme organiser itself
• They may be shares in a company that controls the scheme organiser
• They may be shares in a company that is, or controls, a member of a consortium owning the scheme organiser or its controlling company