Income Tax (Earnings and Pensions) Act 2003 section Sch 2 para 40

Performance allowances: information to be given to employees

Section Sch 2 para 40 requires companies operating share incentive plans with performance allowances to notify employees about the performance measures used to determine their free share awards.

• Each participating employee must be told the specific performance targets and measures that will determine the number or value of their free shares.
• All qualifying employees across the company (or group, for group plans) must be informed in general terms of the performance measures used for the award.
• All notices must be given as soon as reasonably practicable.
• The company may withhold information from the general notice where disclosure would reasonably be expected to prejudice commercial confidentiality.