Income Tax (Earnings and Pensions) Act 2003 section 89

Termination of plan

Section 89 deals with the circumstances under which a Share Incentive Plan (SIP) can be terminated and the notification requirements that must be followed when a termination notice is issued.

• The plan may allow the company to issue a plan termination notice in circumstances specified within the plan itself
• When a termination notice is issued, copies must be sent without delay to specified parties
• Recipients of the notice must include the trustees, each individual holding plan shares, and each individual with an active partnership share agreement
• The partnership share agreement must have been in force immediately before the termination notice was issued in order for that individual to require notification