Income Tax (Earnings and Pensions) Act 2003 section 5

Meaning of "award of shares", "participant" etc.

Section 5 defines the key terms used throughout the SIP code, including what constitutes an "award of shares", what it means for an individual to participate in such an award, and who qualifies as a "participant".

• An "award of shares" occurs each time free or matching shares are appropriated to employees, or partnership shares are acquired on their behalf, in accordance with the plan
• References to shares awarded to an individual mean either free or matching shares appropriated to them, or partnership shares acquired on their behalf under the plan
• An individual participates in an award if shares from that award are appropriated to them (for free or matching shares) or acquired on their behalf (for partnership shares)
• A "participant" is any individual to whom shares have been awarded under the plan