Introduced in 2000, Share Incentive Plans or SIPs are a means of encouraging employees at all levels to acquire shares in the company that they work for. SIPs must be open to all full time employees who are subject to UK tax on employment income.
If kept for 5 years SIPS are not subject to Income Tax and National insurance and exempt from Capital Gains Tax not paid until sold.
There are 4 ways to provide shares under SIPS:
These are just a few Share Incentive Scheme options, for more information contact our Tax Partner, Alex White who would be able to tell you more.