Share Incentive Plan

The Share Incentive Plan (the ‘SIP’) was first introduced in the UK in 2000. SIP's are an HMRC (Her Majesty's Revenue & Customs) approved, tax efficient all employee plan, which provides companies with the flexibility to tailor the plan to meet their business needs. SIPs are becoming increasingly popular with companies that want to engage their workforce and recruit and retain key employees. From 6 April 2014, HMRC approval will no longer be required for a SIP to obtain tax benefits, instead an employer is required to self-certify that the SIP meets the requirements of the relevant legislation. Accordingly, from 6 April 2014, a SIP should no longer be referred to as an HMRC approved plan.