Income Tax (Earnings and Pensions) Act 2003 section 98

Meaning of "the specified retirement age"

Section 98 defines "the specified retirement age" for the purposes of Share Incentive Plans (SIPs), which is relevant to determining when shares can be withdrawn from a plan without adverse tax consequences.

• The specified retirement age is the age stated in the SIP that a participant must reach before shares can be withdrawn free of income tax charges.
• The plan must specify a single retirement age that applies equally to all participants in the scheme.
• The specified retirement age must be no lower than 55 and no higher than 75.
• This definition was amended by the Finance Act 2013, which updated the permissible age range to align with broader pension and retirement policy changes.