Income Tax (Earnings and Pensions) Act 2003 section 500

Operation of tax charges in connection with Schedule 2 SIP

Section 500 sets out the scope of the income tax charges that apply to shares awarded under a Schedule 2 Share Incentive Plan (SIP), and identifies which individuals are excluded from those charges.

• Sections 501 to 508 impose various income tax charges in connection with shares awarded under a Schedule 2 SIP
• These tax charges do not apply to an individual whose earnings from the relevant employment are not subject to UK income tax under the charging provisions in Chapters 4 or 5 of Part 2
• The test is applied at the time the shares are awarded to the individual
• "Eligible employment" is defined as the employment through which the individual meets the plan's employment requirement