Income Tax (Earnings and Pensions) Act 2003 section 99

Minor definitions

Section 99 provides a glossary of key terms used throughout the Share Incentive Plan (SIP) code, together with supplementary rules on fractional shares, consortium ownership and share restrictions.

• Defines core terms such as "company", "group of companies", "plan shares", "participant's plan shares" and "PAYE obligations" for the purposes of the SIP code.
• Clarifies that "shares" can include fractions of shares where the company is registered in a foreign country whose law recognises such fractions.
• Sets out when a company qualifies as a member of a consortium owning another company — requiring combined ownership of at least 75% of ordinary share capital, with each member holding at least 5%.
• Explains that shares are subject to a "restriction" if any contract, agreement, arrangement or condition exists that would fall within the restricted securities rules of section 423 if those rules were applied to the shares in question.